ITC RECAPTURE Clause Samples
The ITC Recapture clause outlines the conditions under which investment tax credits (ITCs) previously claimed may need to be repaid or forfeited if certain triggering events occur, such as the sale or early disposition of an asset. Typically, this clause applies to transactions involving renewable energy projects or other assets eligible for ITCs, and it specifies the parties' responsibilities if recapture is triggered by actions like transferring ownership or failing to meet regulatory requirements. Its core function is to allocate the risk of ITC recapture between parties, ensuring that any financial consequences are clearly assigned and managed in the event of non-compliance or asset transfer.
ITC RECAPTURE. 1.1. Has there been a change in ownership of any Covered Project? Yes No
1.2. Has any Covered Project been taken out of operation? Yes No
ITC RECAPTURE. To the extent that qualified property with respect to ------------- which the Overnite Consolidated Group has been allocated an ITC benefit is prematurely disposed of (other than in connection with a deemed sale under the Purchase Agreement pursuant to an election under Section 338(h)(10) of the Code) thereby triggering ITC Recapture under section 47 of the Code, such ITC Recapture shall be fully allocated to the Overnite Consolidated Group in the period in which such disposition occurs.
i. Credit for Increasing Research Activities (R&D Credit). To the extent ------------------------------------------------------ that the Overnite Consolidated Group has an increase in its qualified research expenses over its base period research expenses (the "Excess R&D Amount") as defined in section 41 of the Code, and to the extent that the Combined Consolidated Group utilizes an R&D Credit for such period, the Overnite Consolidated Group shall be allocated a pro rata share of the R&D Credit utilized by the Combined Consolidated Group, based on a ratio the numerator of which is the Overnite Consolidated Group's Excess R&D Amount computed on a stand-alone basis for the period and the denominator of which is the sum of the numerator and the Excess R&D Amounts of each UPC Division having an Excess R&D Amount computed on a stand-alone basis for the same period.