Contact UsWe are considering setting up a manufacturing plant on the border between Mexico and California. If some of our operation are in Mexico and some in California, what do we need to do to receive a qualifying energy project credit?
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Tax Professional Answers
William Keats
The plant effectively is on the border BETWEEN Mexico and the U.S. Are you considering yourselves to be an American corporation? If so, you are not a Mexican corporation. This credit was established by the American Recovery & Reinvestment Act of 2009. The act provides an investment tax credit of up to 30% of qualified investment in a qualifying advanced energy project.
To qualify for the credit, a project MUST be certified in advance by the IRS. To obtain certification:
Apply in advance;
Receive an allocation of a specific amount of credit from IRS;
Sign agreement with IRS agreeing to meet certain requirements;
Request within one year after credit was allocated and show they have taken certain steps toward
implementing their projects;
Receive certification letter from IRS; and, Place the facility in service within 3 years after certified.
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551 weeks ago
To qualify for the credit, a project MUST be certified in advance by the IRS. To obtain certification:
Apply in advance;
Receive an allocation of a specific amount of credit from IRS;
Sign agreement with IRS agreeing to meet certain requirements;
Request within one year after credit was allocated and show they have taken certain steps toward
implementing their projects;
Receive certification letter from IRS; and, Place the facility in service within 3 years after certified.