Due to the spread of the COVID-19 pandemic in the United States, the American Council on Renewable Energy and more than a thousand organizations are calling on the government and Senate to help green energy producers and suppliers. The open letter contains information that the leading players in the market can be significantly behind schedule and lose money due to a failure in the supply chain.
The rapid expansion of coronavirus affects the general condition of solar and wind energy and also initiates a decrease in tax justice. In its letter, the Collective Council asks the US government to consider introducing renewable tax credits for many suppliers and manufacturers.
This initiative should help local companies reduce tax costs and losses due to epidemic restrictions. It is worth noting that Gregory Jenner, an energy partner at Stoel Rives, answered the questions of all organizations that were pointed out under the joint letter.
In particular, he mentioned Treas. Reg. § 1.461-4 (d) (6) (ii). He also said that the virus does not cause a taxpayer to not comply with the continuity safe harbor.
Recall that the letter indicated a request to extend the construction of safe ports to guarantee all members of the food chain equal rights and obligations. Also, in the collective letter contained information on the provisions on tax incentives and the opportunity to get more preferences.
Many companies have also called on the government to support the growth of renewable energy sources and contribute to the economic development of the sector. According to the main representatives of the community, this will be a good motivator for promoting the entire industry and will help businesses grow in the face of a new danger.
Stoel Rives commented on the letter and the general tone of the statement as a whole. According to him, many companies should prepare for the impending danger in the face of a new virus in advance. It would diversify risks and prepare for all possible consequences.
The current statement is not entirely appropriate in a situation where a country directs its main financial assets to fight a new virus. New challenges and difficulties may adversely affect the energy sector since most financial assets are already distributed in advance and cannot be reviewed.