Renewable Energy Tax Credit:
Court Rulings
December 28, 2008
Economic Substance: Court notes ‘a court must analyze the transaction on posttax basis.’
April 5, 2011
State Tax Credits as Property
ARRA Energy Company I, et al. v. United States
January 18, 2011
The Section 1603 Renewable Energy Grant Program is based on a money-mandating statute under which the government has “no discretion” to deny grants to qualified applicants.
October 31, 1995
Plaintiff is entitled to investment tax credit and depreciation deductions due for investing in solar energy devices; Internal Revenue Service (IRS) was incorrect to disallow abatements on the ground that plaintiff's sale and leaseback transactions were shams.
Piggy Wiggly Southern Inc. v. Commissioner
April 18, 1985
Supermarket corp. allowed depreciation and investment credit on equipment purchased for remodeled, new, and relocated stores only when stores were open for business during tax year. Official reopening of remodeled stores didn't negate actual operations in earlier year. But where openings of new and remodeled stores was under taxpayer's control, equipment wasn't in use until year of opening.
Supermarket's central heating, ventilating and air conditioning and heating units qualified for investment credit. Units were not considered structural components since they were installed solely to meet temperature and humidity requirements of refrigeration equipment in taxpayer's stores. Comfort of taxpayer's employees and customers was incidental to maintenance of proper environmental conditions for operation of machinery; and Energy Tax Act of 1978 didn't deny investment credit for central air conditioners.