SECTION 2. BACKGROUND — Internal Revenue Bulletin 2009-37

.01 Section 46 provides that the amount of the investment credit for any taxable year is the sum of the credits listed in § 46. That list includes the qualifying advanced energy project credit.

.02 The qualifying advanced energy project credit is provided under § 48C. Section 48C(a) provides that the qualifying advanced energy project credit for a taxable year is an amount equal to 30 percent of the qualified investment (as defined in § 48C(b)) for that taxable year with respect to the taxpayer’s qualifying advanced energy project (as defined in § 48C(c)(1)). The qualifying advanced energy project credit with respect to any project for all taxable years may not exceed the amount of credit allocated to the project under section 5 of this notice.

.03 Section 48C(b)(1) provides that the qualified investment for any taxable year is the basis of eligible property that is placed in service by the taxpayer during such taxable year and is part of a qualifying advanced energy project.

.04 Section 48C(d)(1)(B) provides that the aggregate credits allowed under the qualifying advanced energy project program may not exceed $2.3 billion.

.05 Section 48C(d)(3) specifies the criteria that must be considered in determining which qualifying advanced energy projects are certified under § 48C(d).

.06 The at-risk rules in § 49 and the recapture and other special rules in § 50 apply to the qualifying advanced energy project credit. Further, the qualifying advanced energy project credit generally is allowed in the taxable year in which the eligible property (as defined in § 48C(c)(2)) is placed in service (as defined in section 4.04 of this notice) by the taxpayer. Pursuant to § 48C(d)(2)(C), a taxpayer that receives a certification under § 48C(d)(2) has 3 years from the date of issuance of certification to place the qualifying advanced energy project in service. If the taxpayer does not place the project in service by the end of that period, the certification is no longer valid. The Internal Revenue Service (Service) has no authority to extend that period.