Alta Wind Breezes in with Mostly Good News

Tax attorney James Dawson was quoted in a Tax Notes article about the U.S. Court of Federal Claims' decision in Alta Wind I Owner Lessor C, et al. v. United States, which resolved a years-long dispute over cash grants under Section 1603 of the American Recovery and Reinvestment Act of 2009. The case specifically addressed purchase price allocation and asset valuation methods for determining the basis for the grant. The court's ruling gave wins to the government and plaintiffs, favoring the government's approach for determining the fair market value of the tangible assets in question over the plaintiffs' discounted cash flow (DCF) valuation methodology while also finding profits and turn-key value were legitimate items to include in valuing facilities. Mr. Dawson told Tax Notes the opinion gives taxpayers a roadmap for proving the value of tangible assets in a cost segregation report and carries important lessons for those involved in renewable energy tax incentive disputes and related tax controversy.

"Alta Wind is a great guide for complex asset valuation," he said. "If taxpayers do the cost studies correctly and value their assets using the criteria in the opinion, they are in a solid position when it comes to valuation."

Mr. Dawson also co-authored a Holland & Knight alert on this topic.

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