Extract to table

Under this provision, if during any taxable year investment credit property is disposed of, or otherwise ceases to be investment credit property with respect to the taxpayer, before the close of the "recapture period," a portion of the ITC previously claimed must be recaptured as an increase in the taxpayer's federal income tax liability for the taxable year in which the disposition or cessation occurs

Cessation of Qualified Use Energy property must remain "energy property" throughout the recapture period to avoid triggering recapture

Scenario 2: Failure to Maintain Prevailing Wage/Apprenticeship Compliance Background: IRA § 48(a)(10) requires that, in order for a project to claim the full 30% base ITC rate (as opposed to the 6% base rate available for projects that do not satisfy the requirements), the project must satisfy prevailing wage and apprenticeship requirements both during construction and for the first five years of operations

Each of these transaction types must be analyzed for its potential to trigger ITC recapture