Ophelia MacKenzie is spending the summer on a beach house with her daughter Philippa, recovering from the death of her husband and son in an air crash.
Background of Revenue Procedure 2007-65 In 2007, the Internal Revenue Service (IRS) released, which provides a safe harbor pursuant to which the IRS will respect the allocation to developers of and investors in a wind energy project by a partnership that owns and operates this project (a “Project Company”), of production tax credits arising under Section 45 of the Internal Revenue Code. The revenue procedure was intended to provide needed certainty to wind developers and investors in light of the IRS’s “no rule” position established in Notice 2006-88 that the IRS will not issue private letter rulings addressing partnership issues arising in connection with the Section 45 production tax credit. In accordance with this intention, as long as the Project Company meets each of the safe harbor requirements of Revenue Procedure 2007-65, the IRS will respect the allocation of claimed credits. Although Revenue Procedure 2007-65 is expressly made applicable only to wind projects, developers and investors often utilize the safe harbor set forth therein to structure investment in other types of renewable energy projects as well. Revenue Procedure 2007-65 provides that it, like most (if not all) safe harbors established by the IRS, is “not intended to provide substantive rules and are not to be used as audit guidelines.” Thus, while a Project Company that meets all of the requirements of the safe harbor will not be subject to challenge by the IRS, no negative presumption should be attached to a Project Company that fails to satisfy all of the requirements. However, Revenue Procedure 2007-65 contained a statement indicating that the IRS “generally will closely scrutinize a Project Company as a partnership or Investors as partners if a Project Company's partnership agreement does not satisfy each requirement of this revenue procedure.” This statement has led to much confusion and criticism among the participants in the renewable energy industry.
In addition, Revenue Procedure 2007-65 required that any right held by a partner in the Project Company (or any related person) to acquire an interest in the Project Company (or in the underlying wind project) cannot be exercisable at a price less than the fair market value of such interest, determined at the time of exercise (emphasis added). This language was also criticized as unnecessarily restrictive by numerous industry participants, who generally asserted that a fair market value price negotiated by unrelated parties at arm’s length should be sufficient, regardless of when that price is determined. Announcement 2009-69 The IRS recently issued Announcement 2009-69, which favorably amends Revenue Procedure 2007-65 to address the criticisms discussed above. Specifically, the IRS eliminated the sentence in the revenue procedure that provided that the failure to satisfy the safe harbor requirements would subject the Project Company to close scrutiny, thus confirming that such failure will not cause any negative inference to be drawn. The IRS also expanded the safe harbor relating to the exercise of a right to acquire an interest in the Project Company (or in the underlying project).
HUH - I'm a little puzzled about the user review that ridiculed this movie as a typical run of the mill 'feel good' Hallmark movie. This movie is a real to life story about a charity called 'Safe Harbor Boy's Home' in Jacksonville Florida. According to them this movie is extremely accurate with the exception of a large wave depicted for effect in one scene. Over 800 troubled youth have passed through their doors since their inception. They are the only parents many of these boys have ever had and many of these boys still call and send them cards for special days.
I had looked this information up when the movie first aired, because this charity is in Jacksonville,FL and I live in St Augustine just to the south. If you want to watch something that is real, that tugs on your heart strings give this movie a watch.