litigation heats up in section 1603 cash grant

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2011/12/16With that in mind we wanted to bring you up to date on the latest publications from and conversations with Treasury To refresh your memory under the Section 1603 program projects that "began construction" in 2009 2010 or 2011 and which will be placed in service by the end of 2016 (solar) 2012 (most wind) or 2013 (most other renewables) are also eligible for grants at the same The Section 1603 Grant was available in lieu of the ITC or the production tax credit (PTC) under Code Section 45 and had the added benefit of being a cash grant (compared with a non-refundable tax credit like the ITC and PTC)

U S Federal Claims Court Orders Repayment of $5 6 Million

The U S Court of Federal Claims issued an opinion Jan 7 that ordered a wind energy developer to pay back more than $5 6 million in Internal Revenue Code Section 1603 cash grants The court sided with a Department of Treasury's claim that the wind energy developer inappropriately calculated the grant amount for which it should qualify

The 1603 cash grant program provided a grant equal to 30% of the cost basis of a qualifying renewable energy project to owners of wind solar and certain other renewable energy facilities The 1603 cash grant was available in lieu of the production tax credit (PTC) under section 45 or the ITC

Section 1603 of the American Recovery and Reinvestment Act of 2009 as amended (Section 1603) allows a taxpayer to elect to receive a cash grant payment instead of claiming the 30% energy tax credit with respect to an investment in certain renewable

The U S Department of Treasury announced in a notice published yesterday that as a result of the sequestration federal spending cuts that took effect March 1 all awards made to a Section 1603 cash grant applicant on or after March 1 2013 through September 30 2013 will be reduced by 8 7 percent regardless of when the Treasury received the application Awards made prior to March 1 2013

More specifically Section 1603 provides a grant to persons who place in service specified energy property either (i) during 2009 or 2010 or (ii) after 2010 if construction began on the property during 2009 or 2010 and the property is placed in service by the "credit

Section 1603 Grant program: Last Minute Guidance

2011/12/16With that in mind we wanted to bring you up to date on the latest publications from and conversations with Treasury To refresh your memory under the Section 1603 program projects that "began construction" in 2009 2010 or 2011 and which will be placed in service by the end of 2016 (solar) 2012 (most wind) or 2013 (most other renewables) are also eligible for grants at the same

The 1603 cash grant was available in lieu of the production tax credit (PTC) under section 45 or the ITC Because the 1603 cash grant program guidance generally looked to the relevant rules for PTCs and ITCs the treatment of development fees under the program is of significance for parties involved in the development of wind solar and other renewable energy projects

2020/6/1These ARRA Section 1603 cases will impact how taxpayers report tangible basis tax credits and earnings for years to come The American Recovery and Reinvestment Act of 2009 (ARRA) Section 1603 provided a cash grant (Grant) for specified energy property (as defined in ARRA Section 1603

The court's opinion highlights the differences between the cash grant in lieu of tax credit under Section 1603 and the tax credit itself The tax credit is governed by the Internal Revenue Code which allows the IRS to challenge credits claimed on income tax returns through the audit procedure

Section 1603 allowed taxpayers to take a cash grant in lieu of the production tax credit of up to 30% of the eligible cost basis of a wind project The eligible cost basis under Section 1603 is determined in the same manner as under Section 45 for purposes of the investment tax credit (ITC)

Section 1603 provides a cash grant for placing in service certain renewable energy property One of the requirements under the program is that the property be placed in service during 2009 or 2010 or placed in service after 2010 (and before that property's credit termination date) only if the construction of such property began during 2009 or 2010

Whether the taxpayer claims the ITC or the cash grant the tax basis for the property determines the amount of the credit or grant The Treasury Department is reviewing literally thousands of applications under the Section 1603 program and has to make a determination of tax basis in a much shorter period of time than is available to IRS auditors in the field

The U S Department of Treasury announced in a notice published yesterday that as a result of the sequestration federal spending cuts that took effect March 1 all awards made to a Section 1603 cash grant applicant on or after March 1 2013 through September 30 2013 will be reduced by 8 7 percent regardless of when the Treasury received the application Awards made prior to March 1 2013

Court Rejects Treasury Challenge to Section 1603 Cost

The court's opinion highlights the differences between the cash grant in lieu of tax credit under Section 1603 and the tax credit itself The tax credit is governed by the Internal Revenue Code which allows the IRS to challenge credits claimed on income tax returns through the audit procedure

The court's opinion highlights the differences between the cash grant in lieu of tax credit under Section 1603 and the tax credit itself The tax credit is governed by the Internal Revenue Code which allows the IRS to challenge credits claimed on income tax returns through the audit procedure

Two former employees have brought a lawsuit alleging that Ormat made inaccurate 1603 Cash Grant 2 submissions to obtain grants for projects that should not have qualified for such grants The complaint filed in the U S District Court for the Southern District of California by the ex-employees is available here 3 The venue has been changed to Nevada 4

Wind Projects Win Over $206 Million in Section 1603 Grant Litigation On October 24 2016 in Alta Wind I Owner-Lessor C et al v United States Nos 13-402T et al the US Court of Federal Claims (the Court) ruled in favor of the owners of six wind farm

Would Extend Section 1603 cash grant program Cosponsors More information Press Release and Bill Summary: Senators Feinstein and Merkley Introduce Measure to Spur Renewable Energy Development December 17 2009 H R 1 American Recovery and

The U S Department of Treasury issued guidance to assist taxpayers with preparing Section 1603 grant applications by outlining the Treasury processes used to evaluate cost basis Mondaq uses cookies on this website By using our website you agree to our use