Blog Archive

Passive v. Active – Categorization of Investment Tax Credit

Investment tax credit rules are complex, particularly when it comes to active and passive categorization. That being said, we share the following scenarios with regard to a member of a limited liability company....

November 30, 2018 by The Green Team
ITC and the Eligibility of Costs

One of the most common queries we receive related to solar projects and the Investment Tax Credit (ITC) regards the eligibility of costs associated with the project. While all projects are different, and facts and circumstances can dictate different outcomes, the general rules are pretty straightforward....

October 23, 2018 by The Rodman Green Team
Investment Tax Credit Considerations

The Investment Tax Credit allows for a credit of 30 percent of the cost of installing a solar energy system. Developers and investors in solar projects understand this substantial benefit but may not be aware of the recapture provisions that can be triggered if the property is disposed during the five years that follow....

September 27, 2018 by The Green Team
New Guidelines on Energy Property Construction

In late June, the IRS issued new guidance on changes to IRC Section 48 instituted with the Bipartisan Budget Act of 2018....

July 26, 2018 by The Green Team
Challenges in Recycling

How much of your recycling actually gets recycled depends on where you live....

June 26, 2018 by The Green Team
Massachusetts Going "All-Out" on Renewables

Massachusetts clean energy use has grown exponentially over the past decade. Can it reach the goal of being 100 percent renewable energy dependent by 2050?...

May 31, 2018 by The Green Team
Potential Tax Credit for Solar Energy Storage Retrofit

Good news for homeowners who are considering adding a battery storage system to their existing solar energy systems in the future....

April 30, 2018 by The Green Team
SMART Over SREC

Key features of the Solar Massachusetts Renewable Target "SMART" Program...

March 31, 2018 by Rodman Green Team
Turfs, Stadiums and Sustainable Technologies - An Amazing Match-up

Now that it’s January, the focus across the country has switched to taxes and football playoffs....

January 18, 2018 by Rodman Green Team
Shedding Some Light on the State of Renewable Energy in the Northeast

We would like to share some insight on the state of the solar, wind and biogas industries in the Northeast....

December 21, 2017 by Green Team
New Technology and Other Factors for a Brighter Renewable Energy Future

Remarkable advances in renewable energy are being made in the U.S....

November 16, 2017 by Rodman Green Team
Investment Tax Credit "Haircut"

You may not know about the limitation that exists at the individual level....

October 10, 2017 by Rodman Green Team
Is a Solar Panel Tariff on the Horizon?

The Trade Commission’s recommendation heads to President Trump’s desk later this week. The President will have the final decision on whether to impose a tariff....

September 21, 2017 by The Green Team
Rodman CPAs to Hold Second "Solar Roundtable" on September 19, 2017

Solar developers and installers throughout the region are invited to Rodman CPAs' second "Solar Roundtable" on Tuesday, September 19, 2017 from 9 to 11 a.m. at their Waltham office, 51 Sawyer Road, Suite 610....

September 19, 2017 by The Green Team
Alternative Energy and Your Business

The most frequently asked questions from corporate taxpayers regarding alternative energy....

August 25, 2017 by The Green Team
Tax Reform and Renewable Energy

How will tax reform affect renewable energy investors and developers?...

July 19, 2017 by The Green Team
Why do Companies Engage in Sustainable Activites?

A growing number of companies are committing to clean energy and procuring their electricity from renewable sources such as solar, hydro and wind....

June 29, 2017 by Rodman Green Team
What the Heck is a "Duck Curve"?

Should there be more government support for energy storage research and development? Let us know what you think?...

March 17, 2017 by Rodman Green Team
Solar Job Growth Expected to Continue in States that Support the Industry

Across America, the number of solar jobs have nearly tripled since 2010....

February 24, 2017 by Rodman Green Team
A Sustainable Financial Roadmap for Developers

As domain experts in alternative energy, our “Green Team” works with renewable energy producers and businesses throughout the U.S. providing tax advisory, financial, accounting services, and Investment Tax Credit (ITC) studies....

August 10, 2016 by The Rodman Team
The Renewable Energy and Clean Tech Platform – Part One

Every four years when America goes to the polls to elect a new President, taxpayers are anxious on what the candidates’ policies will be and how they will impact themselves and their businesses. Under the Obama administration, an atmosphere of pro-renewable and clean sources of energy allowed for legislation to promote and grow the clean...

May 31, 2016 by The Rodman Team
Cap Lifted, Rate Dropped. MA Solar Industry Back on Track.

In April, Governor Baker signed into law a crucial solar net metering bill. Although the bill is basically a short-term fix, we were able to breathe a collective sigh of relief after five long months of negotiation between the House and Senate as they struggled to come up with this compromise bill. The new law...

May 10, 2016 by The Rodman Team
Urging for a Standalone Solar Bill in Massachusetts

The recent extension to the solar investment tax credit (ITC) was welcome news with its promise of a stable investment environment and continued job growth (potentially thousands of jobs) in the green sector. To recap, the legislation extended the temporary 30 percent energy ITC for solar property from its current 2016 expiration through 2019. The...

March 30, 2016 by The Rodman Team
Proposing a Climate Change Coexistence with Capitalism

The U.S. has a leadership role in the world and with that, a responsibility to not only recognize, but address climate change. Our presidential candidates are proud to consider the U.S. the greatest nation on earth. But, if we are to command the respect of the rest of the world’s leaders, then we need to move...

February 23, 2016 by The Rodman Team
Energy Incentives Extended and Revived

In a major boost to the green energy sector, recently enacted tax legislation extends and/or re-enacts major tax breaks for energy companies. This is welcome news, especially for solar and wind companies, developers and investors. Although somewhat surprising that legislation was enacted now, especially extending the solar investment tax credit (ITC), it appears that Congress...

January 25, 2016 by The Rodman Team
Raising Net Metering Caps

In Massachusetts, electricity customers from the major utilities (National Grid, NStar, WMECO and Unitil) are allowed to use energy they produce on-site to offset their energy costs drawn from that utility, in what is known as net metering. A customer’s energy generating facility, such as a rooftop solar system, that is smaller than 60 kilowatts...

November 30, 2015 by The Rodman Team
What You Need to Know about the Residential Energy Credit

Planning to install solar electric equipment on or in your home? Timing is everything for taxpayers looking to take advantage of the Residential Energy Efficient Property (REEP) Credit. For years prior to 2017, an individual taxpayer is eligible for an energy tax credit in an amount equal to 30 percent of “qualified solar electric property...

October 29, 2015 by The Rodman Team
Another Strike Against “Greenaphobia”

Perhaps the most persistent argument we hear against large-scale penetration of renewable energy is the potential impact on grid reliability. How can we count on growing proportions of intermittent generation that is dependent upon meteorological events over which we have no control? Interestingly, The Brattle Group for the Advanced Energy Economy Institute (AEE Institute) just...

June 18, 2015 by The Rodman Team
Could the Tesla Powerwall Make a Night and Day Difference?

With expectations of streamlining their brand into the energy storage market, Elon Musk launched his first non-automotive product line several weeks ago by unveiling the Tesla Powerwall. Set to become the first mass-produced storage battery for the home, this first generation technology is already proving that it has a long road to travel before the...

May 21, 2015 by The Rodman Team
Deciding How Much is Too Much of a Good Thing

Fueled by the federal Production Tax Credit and additional state incentives, the wind industry has boomed in the U.S., experiencing annual average growth rates in excess of 25%. Two states where wind has been a shining success are Texas and Oklahoma, both of which generate over 14% of their electricity requirements from wind turbines. It’s...

April 15, 2015 by The Rodman Team
Is Green Becoming the New Gold Standard for Reliability?

The traditional argument for fossil fuels versus renewables for power generation used to be reliability. “What happens when the sun doesn’t shine and the wind doesn’t blow?” However, as the electric grid continues to age, the new question becomes “What happens when the sun shines too bright and the wind blows too hard?” Severe weather...

March 24, 2015 by The Rodman Team
Capping Off Solar Jobs in Massachusetts

With solar related jobs growing 47% last year, Massachusetts moves into the #2 spot, right behind California, as the largest solar industry workforce. This is welcome news for the Commonwealth when employment and economic recovery on a national basis is still struggling. However, in 2015 net metering caps will hit limits as soon as March...

February 19, 2015 by The Rodman Team
$1.4 Billion Still Available for Clean Renewable Energy Bonds

Clean Renewable Energy Bonds (CREBs) are a form of subsidized financing that allow for the issuance of tax-credit bonds to finance the costs of qualified renewable energy facilities. A qualified renewable energy facility includes Wind, Biomass, Geothermal, Solar, Landfill Gas, Waste-to-Energy, and Hydro. Recently, in Notice 2015-12, The Treasury announced that $1.4B were still...

February 11, 2015 by The Rodman Team
Positive Trends in Solar Market Including Declining Cost of Capital

According to a recent North American Solar Trend Report issued by Mercatus Analysis, the cost of capital for solar deals continued to drop dramatically in 2014. Most developers found this to be good news, although due to the potential of higher risks in their projects, several small to medium size developers may not have experienced...

January 21, 2015 by The Rodman Team
The Road to Emerald City Isn’t Always Beautiful

Windmills are pretty in Dutch paintings, but on today’s farms in Oklahoma…not so much. In a recent AP article, a Northern Oklahoma real estate developer claims “the wind industry is turning the Oklahoma landscape into a “giant industrial complex.” In Massachusetts the ban on commercial food waste in landfills began just three weeks ago, but...

October 18, 2014 by The Rodman Team
2014 a Big Year for Driving Future Growth of Anaerobic Digesters in New England

2014 will mark a major milestone for the recycling of food and other organic wastes in the three New England States of Vermont, Connecticut, and Massachusetts. Effective since July 2014, Vermont Act 148 bans the disposal of plastic, aluminum and metal containers, tin foil, paper/cardboard, leaf/yard residuals, and food scraps into landfills. Originally passed in...

September 24, 2014 by The Rodman Team
Even Baby Steps Result in Forward Progress

Rodman & Rodman expressed its hopes that passage of Bill H4185 in the Massachusetts House and Senate would permanently eliminate net metering caps for solar projects in the Commonwealth. In our opinion, H4185 was an extremely workable compromise that would have created strong solar investment to easily meet or exceed the Commonwealth’s 2020 PV solar goals, while...

August 21, 2014 by The Rodman Team
An Act Relative to Net Metering and Solar Power

“You can’t always get what you want. But if you try sometimes, you get what you need.” As a CPA firm with a specialty practice in renewable energy, the oft-asked question from a prospective client is “can you help us get financing?” Due largely to the state’s policies providing net metering (credits for returning excess...

July 19, 2014 by The Rodman Team
Cow Power to the People!

Last week, the Rodman & Rodman, P.C. “Green Team” had the privilege of attending the ribbon cutting ceremonies for the new BGreen Anaerobic Digester at Longview Farm in Hadley, MA. The BGreen digester is the second waste-to-energy project completed by AGreen Energy LLC, a Rodman & Rodman tax advisory client. The first digester at the...

June 18, 2014 by The Rodman Team
Company of the Month: Are New England property owners taking full advantage of solar tax benefits?

Click here to read the full article from The New England Real Estate Journal website....

June 9, 2014 by The Rodman Team
Home Owners Can Reap Credit on Renewable Energy

When it comes to home ownership, the value of energy efficiency extends beyond tight windows and proper insulation. Federal tax credits allow taxpayers to claim a Residential Energy Efficient Property (REEP) Tax Credit for 30% of the cost of eligible solar water heaters, solar electric property, fuel cell property, small wind energy property, and geothermal...

March 2, 2014 by The Rodman Team
Qualifying Basis for Calculating the Federal Energy Credit

With the 1603 grant program unavailable for new solar investments, taxpayers constructing solar property are looking to the federal energy credit (ITC) as a means to attract investors and finance new investments. The ITC is equal to 30% of the cost of “specified energy property” (Qualifying Property). Generally, ITC basis for solar energy property includes...

August 30, 2013 by The Rodman Team
While 1603 Expirations Create New Challenges for Green Energy, Anaerobic Digestion is on Rise

Over the past several years, the renewable energy industry has enjoyed increasing growth, thanks in large part to the provisions available through the 1603 cash grant program. Under this program, energy projects found it much easier to fund the completion of projects. When the 1603 program was not extended, this left a gap in the...

August 1, 2013 by The Rodman Team
Court Decisions Make it Easier to Deduct LLC Losses

What happens if you’re the owner of a limited liability company (LLC) that generates tax losses, and you don’t spend a lot of time in the activities of the business? The losses might be classified as passive, and your ability to currently deduct them might be severely restricted by the passive activity loss (PAL) rules....

July 10, 2013 by The Rodman Team
Crucial Bill in Massachusetts Would Guarantee Purchase of All SRECs

Rodman & Rodman recently spent the day at the Massachusetts State House participating in “Massachusetts Clean Energy Day.” The Representatives and Senators that we met with all encouraged an open dialogue between government and the business owners in renewable energy and cleantech, an industry that continues to thrive and create jobs in the Commonwealth. An...

May 15, 2013 by The Rodman Team
Extension of Production Tax Credit Contains Major Change to Safe Harbor Period

When the American Taxpayer Relief Act of 2012 was signed into law in January of 2013, it contained provisions to extend the existing Production Tax Credit (PTC). Under the previous legislation, the PTC available for wind facilities required them to be placed in service by December 31, 2012. The new legislation extended wind facilities another...

April 17, 2013 by The Rodman Team
Sequestration Could Affect Your 1603 Grants

According to the U.S treasury, the Balanced Budget and Emergency Deficit Control Act of 1985, as amended, payments issued under Section 1603 of the American Recovery and Reinvestment Tax Act of 2009 for specified energy property in lieu of tax credits, are subject to sequestration. This means that every award* made to a Section 1603...

March 27, 2013 by The Rodman Team
Energy Purchases are Tax Exempt for Some Massachusetts Small Businesses

The purchase of gas, steam, or electricity from a utility is tax exempt if a qualifying, Massachsetts-based small businesses is the purchaser solely for its own use. Small businesses are those with five or fewer “employees,” with gross income of less than $1 million for the preceding calendar year with the expectation of gross income...

March 19, 2013 by The Rodman Team
Partnership allocations of wind energy production tax credit

Rev. Proc. 2007-65 Safe Harbor for Allocation of Wind Energy Production Tax Credit A tax credit is available for producing electricity from certain renewable resources. Basically, this credit is 1.5¢ per kilowatt hour of electricity (indexed annually for inflation and currently 2.2¢/kWh) (1) produced from qualified energy resources at a qualified facility construction of which...

February 27, 2013 by The Rodman Team
Production Tax Credit Extended – When is a Year not A Year?

As part of the American Taxpayer Relief Act of 2012 (“Act”), Congress extended the Production Tax Credit (“PTC”) through December 2013 for certain types of energy producers, including wind and biomass facilities. By way of background, the PTC is a per kilowatt hour credit for electricity generated by qualified energy resources which the taxpayer sells...

February 13, 2013 by The Rodman Team
Bright Future for Agricultural Anaerobic Digesters in Massachusetts

Aggressive alternative energy regulations, the proposed 2014 ban on food wastes, and a supportive collaboration between, government, utilities and farmers, make power from cows a good Investment for Massachusetts stakeholders, said Bill Jorgenson — Managing Partner at Agreen Energy, LLC. At the “2012 Worcester Business Journal Energy Summit.” A Rodman & Rodman Green Team client...

November 20, 2012 by The Rodman Team
Top 10 Helpful Tips When Submitting 1603 Grant Application

Rodman & Rodman has prepared numerous 1603 applications and, based on our experience with the application process, we have a come up with a top 10 list of helpful tips. Listed below are some application tips and additional documentation that we recommend you have on hand, even though the initial application does not require you...

November 7, 2012 by The Rodman Team
Top 10 Considerations When Setting Up a New Green Energy Company on QuickBooks

Setting up a new company in QuickBooks can be challenging enough, but if you are a green energy company there are a few additional items to think about. Due to the nature of your business many green energy companies face unique reporting and tracking requirements for a number of reasons, including tax reporting requirements, potential...

November 7, 2012 by The Rodman Team
Qualifying for and Calculating the Federal Energy Credit

With the 1603 grant program unavailable for new solar investments, taxpayers constructing solar property are looking to the federal energy credit (Investment Tax Credit or ITC) as a means to attract investors and finance new investments. The ITC is equal to 30% of the cost of “specified energy property” (Qualifying Property). Generally, ITC basis for...

October 25, 2012 by The Rodman Team
Rodman & Rodman Green Team’s Kathy Parker to be Feature Panelist at EUCI Renewable Energy Finance Conference

Kathy Parker, CPA, MST, will be a feature panelist at the EUCI Renewable Energy Finance Conference in San Francisco on December 3-4. Visit www.euci.com Ms. Parker is a founding member of the Rodman & Rodman “Green Team,” a specialty accounting practice dedicated to providing alternative energy producers and other businesses that pursue energy efficiency...

October 17, 2012 by The Rodman Team
Kathy Parker, CPA, Partner at Rodman & Rodman Named to Invest In Girls Inc. Board of Directors

Kathy Parker, CPA, MST, Partner at Rodman & Rodman, P.C. has recently been named to the Board of Directors for Invest In Girls, Inc. of Boston. Ms. Parker is a resident of Billerica. Ms. Parker has been employed with Rodman & Rodman P.C. for more than 13 years and has risen through the ranks from...

September 20, 2012 by The Rodman Team
Governor Patrick Renews Commitment to Renewable Energy in Mass Energy Bill

Earlier this month, Governor Deval Patrick signed the Massachusetts Energy Bill which increases provisions and fortifies the policies set forth in the 2008 Green Communities Act. Some of the highlights of the new bill include an increase in the cap on net metering from 3% to 6%. This increase is split 3% to residential and...

August 15, 2012 by The Rodman Team
Are Solar Renewable Energy Credits Taxable?

There has been much recent discussion on solar and energy blogs and in other discussion forums relating to the tax treatment of Solar Renewable Energy Certificate (“SREC”) income. The purpose of this article is to provide a brief overview of the taxability of SREC income for both commercial and individual taxpayers. What is an SREC?...

July 31, 2012 by The Rodman Team
Rodman & Rodman's Kathy Parker Cites Challenges of Tax Incentive Complexities at "Massachusetts Solar Summit – 2012"

“While IRS Section 1603 Tax credits, combined with Solar Renewable Energy Credits (SRECS), created a boom in the Massachusetts Solar Industry, many solar companies are sitting on an inventory of solar panels and other materials for projects that have not begun construction by the end of the 2011 eligibility period,” Kathy Parker, CPA told a...

July 9, 2012 by The Rodman Team
Tariffs on Chinese Solar Panels Helping U.S. Suppliers – but Tax Credits May be Bigger Driver

The Department of Commerce recently enacted a tariff on solar panels being imported from China. The Chinese government has subsidized the production of solar panels, thus making them much cheaper than panels produced anywhere else. While this was appealing to consumers, the quality of the panels is not on the same par with the panels...

June 28, 2012 by The Rodman Team
Proposed Commercial Food Waste Ban in Massachusetts is Boon to New England Biogas Industry

With the expiration of the federal 1603 grant program last year, and dirt-cheap natural gas, investors have been wary about backing new biogas projects in the New England area. One of the primary concerns has been the availability of organic waste feedstock for the anaerobic digester systems that decompose the waste into biogas. Feedstock is...

June 21, 2012 by The Rodman Team
Rodman & Rodman Green Team Member Joins Another Green Team for Earth Day

On Saturday, April 21st, Wellesley resident Mark Vitello, who is a staff accountant on Rodman & Rodman, P.C.’s Green Team, participated in the Charles River Conservancy Earth Day river cleanup event. Vitello volunteered through the Virginia Tech Alumni Association and in cooperation with State Senator William Brownsberger’s office. Vitello joined more than 3,000 other volunteers...

June 13, 2012 by The Rodman Team
New IRS Notice will Benefit Commercial Real Estate Owners Seeking to Qualify for 179D Incentives

A new IRS Notice modifies previous guidance by providing an additional set of energy savings percentages that taxpayers can use to qualify for a partial 179D section deduction for energy efficient commercial buildings. These new energy savings percentages, which are effective for property placed in service on or after March 12, 2012, are: 25% for...

April 11, 2012 by Rodman Admin
Act now! Congress considering 1603 extension in payroll tax bill

Congress is currently considering an extension of the 1603 program as part of the current payroll tax bill. This program has been very successful, and is an important part of the green economy. The Solar Power Advocacy Network and the Solar Energy Industries Association have created an advocacy letter for you to send to your...

February 14, 2012 by Rodman Admin
FUTURE OF SREC CAP RATES NOW MORE CERTAIN

Since the inception of the SREC program, there has been uncertainty over how to value SRECs into the future. While the original wording of the Act allowed the state to adjust the cap by up to 10% of the current value each year, this left a lot of room for speculation. On December 28, 2011...

February 3, 2012 by Rodman Admin
Association of Cleantech Incubators of New England Welcomes Rodman & Rodman and Bane Marketing as 2012 Sponsors

Fall River, MA (January 17, 2012) – The Association of Cleantech Incubators of New England (ACTION), has announced the addition of two new 2012 Sponsors, Rodman & Rodman, P.C. and Bane Marketing & Communications LLC. ACTION is New England’s leading network of cleantech incubators sharing the common goals of accelerating the growth and success of...

January 17, 2012 by Rodman Admin
Thomas H. Astore, CPA, JD Promoted to Partner

Rodman & Rodman is pleased to announce that Thomas H. Astore, CPA, JD has been promoted to Partner. Tom brings over 20 years of experience to our Tax Department. He joined Rodman & Rodman in July 2008 as Tax Manager and was promoted to Tax Director in April 2009. Tom graduated from Hofstra University, cum...

January 16, 2012 by Rodman Admin
Do the Numbers Really Add Up for Your Energy Efficiency Investment?

Although many commercial property owners have become responsible environmental citizens, the decision to install PV solar systems or invest in other capital equipment for energy efficiency comes down to answering a single question: What is my return on investment (ROI)? If a property owner is convinced that at the end of the day he will...

November 10, 2011 by Rodman Admin
New IRS Ruling Redefines Eligibility of Solar Projects for Energy Investment Tax Credit

The Investment Tax Credit (ITC) was originally part of the Revenue Act of 1962. In subsequent legislation, the ITC was modified to include incentives for renewable energy property. Currently, taxpayers can choose to use the ITC in lieu of the Production Tax Credit (PTC) for eligible property. To be considered eligible, most renewable source property...

October 11, 2011 by Rodman Admin
As other States Stumble on Path to Meeting RPS Goals, Massachusetts Stays the Course with SRECs

The Fourth Annual National Clean Energy Summit was held on Tuesday August 30, 2011 in Las Vegas Nevada. It was attended by Senator Harry Reid, Vice President Joe Biden, Energy Secretary Steven Chu, governors from several western states, and other dignitaries and scientists. Due to the summit being hosted in Nevada, the focus was mainly...

September 15, 2011 by Rodman Admin
“Cash or Credit” US Department of Treasury Updates 1603 Grant program for Renewable Energy Developers

The 1603 program offers renewable energy developers cash payments in lieu of investment tax credits. In most cases the value of the award is equal to thirty (30) percent of the project’s eligible cost. Qualifying technologies include biomass, geothermal, solar, wind as well as other technologies.Receiving cash rather than waiting for tax credits that may...

August 25, 2011 by Rodman Admin
Current Blog Posts