Federal Court Rules against Taxpayer in Claim for Section 1603 Grant Developer Fees

Friday, June 28, 2019 - 8:15am

A federal court released opinions siding with the government in two cases where taxpayers claimed developer fees to a related person in their costs while claiming cash grants under the Treasury Department’s renewable energy Section 1603 grant program. In both California Ridge Energy LLC vs. the United States and Bishop Hill Energy LLC vs. United States, the owner appealed Treasury’s decision to allow a cash grant for just a portion of the developer fees while the government countersued for previous amounts paid. The plaintiffs in both cases are owned by the same parent company and the Court of Federal Claims used identical reasoning while siding with the government.