Recent tax laws like the American Jobs Creation Act of 2004, the Energy Policy Act of 2005, the Tax Relief and Health Care Act of 2006, the Energy Improvement and Extension Act of 2008, and the American Recovery and Reinvestment Act of 2009 have substantially altered and expanded the section 45 credit. These changes were enacted because of the success of the credit in the development of wind power as an alternative source of electricity generation. Congress believed the country would benefit from the expansion of the credit to other environmentally friendly sources of electricity production.
This report summarizes the current rules on the section 45 credit and then discusses the ways in which the ARRA have altered the rules on claiming tax credits for renewable projects. Read PDF of full report.