Alta Wind: Six Lessons for Energy Tax Credit Claimants and Practitioners

Tax attorneys Brad Seltzer and Leif Anderson wrote an article for Tax Notes about the Alta Wind decision, a 13-year tax dispute over the value of six California wind facilities. Resolved by the U.S. Court of Federal Claims in July 2026, the case involved than $700 million in disputed cash grants claimed under Section 1603 of the American Recovery and Reinvestment Tax Act of 2009 (ARRA), a temporary grant program that provided for payments equal to 30 percent of the basis of qualifying tangible clean energy property in lieu of federal energy tax credits. Brad and Leif review the matter's extensive history before launching into an analysis of its major takeaways. They outline six lessons learned from Alta Wind, including that fair market value is a question of fact, not method; appellate mandates are not suggestions; and Section 1060 does not automatically apply when an energy project changes hands. The article provides valuable guidance for counsel and companies working through energy tax credit valuation disputes, from the importance of presenting compelling evidence to support discounted cash flow (DCF) methodologies to the difference the right documentation and market analysis can make when strengthening the evidentiary record.

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Brad and Leif also co-authored a Holland & Knight alert when the decision first came out.