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CCH (cch.taxgroup.com) reports:

The IRS has established safe harbor requirements for partnerships claiming Code Sec. 45 wind energy production tax credits. The safe harbor applies to partnerships between a project developer and one or more investors with the partnership owning and operating the qualified energy facilities only if the developer, investors and partnership satisfy each requirement in section four of the procedure. Furthermore, the revenue procedure applies only to partners or partnerships with Code Sec. 45 production tax credits and does not apply to any other tax credits. The procedure is effective for transactions entered into on or after November 5, 2007.
In order to qualify for the safe harbor all of the following requirements must be met:
(1) The partners investment return is reasonably anticipated to be derived from both Code Sec. 45 credits and participation in operating cash flow.
(2) The developer must have a minimum one percent interest in each material item of partnership income, gain, loss, deduction and credit at all times during the existence of the partnership. During the period of ownership, each partner must have a minimum interest equal to 5 percent of his investment in partnership income and gain for the taxable year for which the investor's percentage share of income and gain will be the largest, as adjusted for sales, redemptions or dilution of its interest.
(3) A partner must make a minimum unconditional investment in the partnership on or before the later of (a) the date the facility is placed in service, or (b) the date an interest in the partnership is acquired.
(4) At least 75 percent of the sum of the fixed capital contributions, plus reasonably anticipated contingent capital contributions, to be invested in the partnership must be fixed and determinable obligations that are not contingent in amount or certainty of payment.
(5) No one connected with the partnership, including related parties, may have a contractual right to purchase the facility, any property included in the facility, or an interest in the partnership, at a price less than its fair market value determined at the time of exercise of the contractual right to purchase. In addition, the developer (or any related party) may not have a contractual right to purchase the facility or an interest in the partnership earlier than five years after the qualified facility is first placed into service.
(6) The partnership may not have a contractual right to require any party to purchase the facility or any property included in the facility, excluding electricity, from the partnership. A partner may not have a contractual right to require any party to purchase its partnership interest.
(7) No person may guarantee the partners the right to any allocation of the credit under Code Sec. 45. In addition, neither the developer, nor any related party, may lend a partner funds to acquire an interest in the partnership.
(8) The Code Sec. 45 credit must be allocated in accordance with Reg. §1.704-1(b)(4)(ii).
(9) For purposes of the passive activity loss rules, under Reg. §1.469-4(d)(4) each qualified facility will be treated as a separate activity and that activity may not be grouped with any other activity except other qualified wind facilities.
(10) For purposes of this revenue procedure, parties are related if they bear a relationship to each other that is specified in Code Secs. 267(b) or 707(b)(1).
Additional requirements, details and examples are provided in the revenue procedure.
Finally, because the revenue procedure is intended to provide guidance to taxpayers establishing or participating in wind energy partnerships in lieu of taxpayers requesting a letter ruling, the IRS will not rule on any issues under Subchapter K for partnerships claiming the credit under Code Sec. 45, as indicated in Notice 2006-88, I.R.B. 2006-42.
Rev. Proc. 2007-65, 2007FED ¶46,681
Other References:
Code Sec. 45
CCH Reference - 2007FED ¶4415.01
Code Sec. 704
CCH Reference - 2007FED ¶25,124.148
Tax Research Consultant
CCH Reference - TRC 54,554.05