On April 15, the Internal Revenue Service (IRS) released its definition for qualifying language in the wind production tax credit (PTC). In January, Congress changed the language of the PTC, attempting to allow more projects to qualify. The IRS explained that wind projects that have a “physical work of a significant nature” or that have qualified for particular safe-harbor provisions by January 1, 2014 qualify for the PTC. Preliminary activities such as clearing a site, licensing, permitting, and researching do not count as physical work. If the project meets the physical work requirement and shows that at least 5 percent of the total project cost has been incurred, it will qualify either for a tax credit of $0.023 for every kilowatt-hour produced for the first 10 years of the project or an investment tax credit equal to 30 percent of the project’s cost when construction is complete. An analysis by ML Strategies of the IRS notice is attached.