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IRS Unveils Start of Construction Rules for Solar, Other ITC-Eligible Technologies

The IRS released long-awaited guidance for developers of solar and other projects that qualify for federal investment tax credits on June 22, 2018, saying that a project will be considered to have begun construction if its owner commences “physical work of a significant nature,” or pays or incurs (according to its method of accounting) at least five percent of the total cost of the project.