Notice 2018-59 provides methods to

establish the beginning of construction (Physical Work Test and Five Percent Safe Harbor), a Continuity Requirement for both methods, rules for transferring energy property, and additional rules applicable to the beginning of construction requirement of § 48 with respect to “energy property” described in sections 2.02 and 2.03 of Notice 2018-59. Section 6.05 of Notice 2018-59 provides a Continuity Safe Harbor for energy property under § 48 that mirrors that provided for the PTC under § 45 in the prior IRS notices:

Except as provided in this section, if a taxpayer places an energy property in service by the end of a calendar year

that is no more than four calendar years after the calendar year during which construction of the energy property began (the Continuity Safe Harbor Deadline), the energy property will be considered to satisfy the Continuity Safe Harbor. The excusable disruption rules in section 6.03 do not apply for purposes of applying the Continuity Safe Harbor. However, if an energy property is not placed in service before the end of the fourth calendar year after the calendar year during which construction of the energy property began, whether the energy property satisfies the Continuity Requirement under either the Physical Work Test or the Five Percent Safe Harbor will be determined by the relevant facts and circumstances. The Treasury Department and the IRS recognize that the COVID-19 pandemic is causing delays in the development of certain facilities eligible for the PTC and the ITC. As a result, many taxpayers will not place facilities in service in time to meet the Continuity Safe Harbor or may have difficulty demonstrating to investors that they have met the Continuity Requirement based on the relevant facts and circumstances. This situation is resulting in significant impacts on project financing and development. Thus, an extension of the Continuity Safe Harbor and the addition of a 3½ Month Safe Harbor are necessary to provide relief for taxpayers to satisfy the beginning of construction requirements under §§ 45 and 48. Except as otherwise specified in this notice, the guidance provided in the prior IRS notices continues to apply.