{"id":30855,"date":"2024-08-09T00:44:18","date_gmt":"2024-08-09T00:44:18","guid":{"rendered":"https:\/\/www.writemyessays.app\/blog\/questions\/part-ii-legislation-and-regulation-skills-assignment-working-with-statutory-ambiguity\/"},"modified":"2024-08-09T00:44:18","modified_gmt":"2024-08-09T00:44:18","slug":"part-ii-legislation-and-regulation-skills-assignment-working-with-statutory-ambiguity","status":"publish","type":"questions","link":"https:\/\/www.writemyessays.app\/blog\/questions\/part-ii-legislation-and-regulation-skills-assignment-working-with-statutory-ambiguity\/","title":{"rendered":"Part II &#8211; Legislation and Regulation &#8211; Skills Assignment &#8211; Working with Statutory Ambiguity"},"content":{"rendered":"<p style=\"font-size: 15px; line-height: normal; cursor: auto;\"><span style=\"cursor: auto;\">Fact Pattern<\/span><\/p>\n<p style=\"font-size: 15px; line-height: normal; cursor: auto;\"><span style=\"cursor: auto;\"><\/span><br style=\"cursor: auto;\"><\/p>\n<p style=\"font-size: 15px; line-height: normal; cursor: auto;\"><span style=\"cursor: auto;\">Federal law creates a substantial tax credit for renewable energy projects by residents and businesses, called the energy investment tax credit (ITC). The amount of the ITC credit depends, according to the statute, on the date at which \u201cconstruction\u2026begins.\u201d The full amount of the credit is available only for projects begun before a certain date established by law.<\/span><\/p>\n<p style=\"font-size: 15px; line-height: normal; cursor: auto;\"><span style=\"cursor: auto;\"><\/span><br style=\"cursor: auto;\"><\/p>\n<p style=\"font-size: 15px; line-height: normal; cursor: auto;\"><span style=\"cursor: auto;\">In 2013, the IRS issued a \u201cnotice\u201d providing two methods of establishing when \u201cconstruction\u201d on a solar project has \u201cbegun\u201d:<\/span><\/p>\n<p style=\"font-size: 15px; line-height: normal; cursor: auto;\"><span style=\"cursor: auto;\"><\/span><br style=\"cursor: auto;\"><\/p>\n<ul style=\"cursor: auto;\">\n<li style=\"font-size: 15px; line-height: normal; cursor: auto;\"><span style=\"font-size: 10px; cursor: auto;\"><\/span><span style=\"cursor: auto;\">The first method provides that construction has begun when \u201cphysical work of a significant nature\u201d has been carried out.<\/span><\/li>\n<li style=\"font-size: 15px; line-height: normal; cursor: auto;\"><span style=\"font-size: 10px; cursor: auto;\"><\/span><span style=\"cursor: auto;\">The second method provides that construction has begun when the entity carrying out the project has paid five percent or more of the total cost of the facility.<\/span><\/li>\n<\/ul>\n<p style=\"font-size: 15px; line-height: normal; cursor: auto;\"><span style=\"cursor: auto;\"><\/span><br style=\"cursor: auto;\"><\/p>\n<p style=\"font-size: 15px; line-height: normal; cursor: auto;\"><span style=\"cursor: auto;\">According to the notice, a project is considered to have begun whenever either of the two tests is met, so long as the project is under \u201ccontinuous efforts to advance towards completion\u201d once initiated. Whether \u201ccontinuous efforts to advance towards completion\u201d exist is assessed using all the facts and circumstances, but in all cases (according to a later, 2016 notice) will be deemed to exist if the project has been completed within four years of the year when construction was begun.<\/span><\/p>\n<p style=\"font-size: 15px; line-height: normal; cursor: auto;\"><span style=\"cursor: auto;\"><\/span><br style=\"cursor: auto;\"><\/p>\n<p style=\"font-size: 15px; line-height: normal; cursor: auto;\"><span style=\"cursor: auto;\">The 2013 \u201cnotice\u201d was issued by the IRS on its own initiative and did not go through notice and comment rule-making procedures. It is not a regulation. The \u201cnotice\u201d has since been updated many times (for example in 2018), but not in ways that are relevant to this problem. You may ignore these later notices and need not consult them.<\/span><\/p>\n<p style=\"font-size: 15px; line-height: normal; cursor: auto;\"><span style=\"cursor: auto;\"><\/span><br style=\"cursor: auto;\"><\/p>\n<p style=\"font-size: 15px; line-height: normal; cursor: auto;\"><span style=\"cursor: auto;\">You are part of an organization that is undertaking a large-scale, complex solar energy project. Your organization expects to be able to complete substantial planning and design of the project in a year that is early enough to qualify for the credit. However, you also expect that construction work will not start until later, in a year that would be too late to qualify for the full credit under current law. Moreover, you are concerned that the work may take about six years to complete, given the scope of the project and its complex nature.<\/span><\/p>\n<p style=\"font-size: 15px; line-height: normal; cursor: auto;\"><span style=\"cursor: auto;\"><\/span><br style=\"cursor: auto;\"><\/p>\n<p style=\"font-size: 15px; line-height: normal; cursor: auto;\"><span style=\"cursor: auto;\">Assignment<\/span><\/p>\n<p style=\"font-size: 15px; line-height: normal; cursor: auto;\"><span style=\"cursor: auto;\"><\/span><br style=\"cursor: auto;\"><\/p>\n<p style=\"font-size: 15px; line-height: normal; cursor: auto;\"><span style=\"cursor: auto;\">You are asked to write a memo of no more than two pages (double-spaced) addressing the following questions:<\/span><\/p>\n<p style=\"font-size: 15px; line-height: normal; cursor: auto;\"><span style=\"cursor: auto;\"><\/span><br style=\"cursor: auto;\"><\/p>\n<ul style=\"cursor: auto;\">\n<li style=\"font-size: 15px; line-height: normal; cursor: auto;\"><span style=\"font-size: 10px; cursor: auto;\"><\/span><span style=\"cursor: auto;\">Is your organization likely to qualify for the credit under the guidelines laid out in the IRS notice? Why or why not?<\/span><\/li>\n<\/ul>\n<p style=\"font-size: 15px; line-height: normal; cursor: auto;\"><span style=\"cursor: auto;\"><\/span><br style=\"cursor: auto;\"><\/p>\n<ul style=\"cursor: auto;\">\n<li style=\"font-size: 15px; line-height: normal; cursor: auto;\"><span style=\"font-size: 10px; cursor: auto;\"><\/span><span style=\"cursor: auto;\">Using techniques of statutory interpretation, what other interpretations of the statutory term when \u201cconstruction\u2026begins\u201d might be available, and how might your organization make use of those alternative interpretations?<\/span><\/li>\n<li style=\"font-size: 15px; line-height: normal; cursor: auto;\"><span style=\"font-size: 10px; cursor: auto;\"><\/span><span style=\"cursor: auto;\">What deference do you think the IRS notice will receive in the courts, and what are the odds of getting the courts to overturn or alter the IRS\u2019s interpretation of the provision?<\/span><\/li>\n<li style=\"font-size: 15px; line-height: normal; cursor: auto;\"><span style=\"font-size: 10px; cursor: auto;\"><\/span><span style=\"cursor: auto;\">Do you have any advice for how the project might be rethought in order to lessen the risk that your organization will not ultimately qualify for the tax credit?<\/span><\/li>\n<\/ul>\n<p style=\"font-size: 15px; line-height: normal; cursor: auto;\"><span style=\"cursor: auto;\"><\/span><br style=\"cursor: auto;\"><\/p>\n<p style=\"font-size: 15px; line-height: normal; cursor: auto;\"><span style=\"cursor: auto;\">Readings<\/span><\/p>\n<p style=\"font-size: 15px; line-height: normal; cursor: auto;\"><span style=\"cursor: auto;\"><\/span><br style=\"cursor: auto;\"><\/p>\n<p style=\"font-size: 15px; line-height: normal; cursor: auto;\"><span style=\"cursor: auto;\">The following readings should be consulted to carry out the assignment. You are not expected, and do not need to consult, any additional readings.<\/span><\/p>\n<ul style=\"cursor: auto;\">\n<li style=\"font-size: 15px; line-height: normal; cursor: auto;\"><span style=\"font-size: 10px; cursor: auto;\"><a style=\"cursor: auto;\"><span style=\"font-size: 15px; cursor: auto;\">The 2013 IRS notice<\/span><\/a><\/span><span style=\"cursor: auto;\"><span style=\"cursor: auto;\">&nbsp;<\/span>providing guidance on the date when construction has \u201cbegun.\u201d<\/span><\/li>\n<li style=\"font-size: 15px; line-height: normal; cursor: auto;\"><span style=\"font-size: 10px; cursor: auto;\"><a style=\"cursor: auto;\"><span style=\"font-size: 15px; cursor: auto;\">The 2016 IRS notice<span style=\"cursor: auto;\">&nbsp;<\/span><\/span><\/a><\/span><span style=\"cursor: auto;\">providing that projects completed within four years would automatically satisfy the \u201ccontinuous program of construction\u201d requirement.<\/span><\/li>\n<li style=\"font-size: 15px; line-height: normal; cursor: auto;\"><span style=\"font-size: 10px; cursor: auto;\"><\/span><span style=\"cursor: auto;\">Brian Americus and Gary L. Hecimovich (Deloitte),<span style=\"cursor: auto;\">&nbsp;<\/span><a style=\"cursor: auto;\"><span style=\"cursor: auto;\">Special Report: Digging In: Beginning of Construction for Energy Credits (2018)<\/span><\/a>.<\/span><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Fact Pattern Federal law creates a substantial tax credit for renewable energy projects by residents and businesses, called the energy investment tax credit (ITC). The amount of the ITC credit depends, according to the statute, on the date at which \u201cconstruction\u2026begins.\u201d The full amount of the credit is available only for projects begun before a [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"closed","template":"","meta":[],"disciplines":[74],"paper_types":[],"tagged":[],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.writemyessays.app\/blog\/wp-json\/wp\/v2\/questions\/30855"}],"collection":[{"href":"https:\/\/www.writemyessays.app\/blog\/wp-json\/wp\/v2\/questions"}],"about":[{"href":"https:\/\/www.writemyessays.app\/blog\/wp-json\/wp\/v2\/types\/questions"}],"author":[{"embeddable":true,"href":"https:\/\/www.writemyessays.app\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.writemyessays.app\/blog\/wp-json\/wp\/v2\/comments?post=30855"}],"version-history":[{"count":0,"href":"https:\/\/www.writemyessays.app\/blog\/wp-json\/wp\/v2\/questions\/30855\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.writemyessays.app\/blog\/wp-json\/wp\/v2\/media?parent=30855"}],"wp:term":[{"taxonomy":"disciplines","embeddable":true,"href":"https:\/\/www.writemyessays.app\/blog\/wp-json\/wp\/v2\/disciplines?post=30855"},{"taxonomy":"paper_types","embeddable":true,"href":"https:\/\/www.writemyessays.app\/blog\/wp-json\/wp\/v2\/paper_types?post=30855"},{"taxonomy":"tagged","embeddable":true,"href":"https:\/\/www.writemyessays.app\/blog\/wp-json\/wp\/v2\/tagged?post=30855"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}