“People use the term “recapture” to describe two situations. One (“true recapture”) is where the unvested portion of the ITC is clawed back due to an event that occurs after the project is placed in service. The other (“disallowance”) is where the IRS determines that the credit was not available in the amount claimed. The project sponsor usually bears the risk of recapture, part from challenges to the tax structure.”
Read more about recapture in our brochure, Recapture of Solar Investment Tax Credit (ITC).