Energy Cash-Grant Case Casts Light on Investment Tax Credit

Tax attorney Amish Shah was mentioned in a Law360 about what the U.S. Court of Federal Claims' long-awaited decision in a California wind farm's valuation dispute under the now-defunct Section 1603 renewable energy cash grant program signals for valuing clean energy projects financed by the investment tax credit (ITC). Judge Ryan T. Holte largely endorsed the government's cost approach over the wind farm's discounted cash flow method for determining fair market value (FMV) – an area where the IRS has issued little guidance. Mr. Shah told Law360 the decision provides a rare public opinion analyzing FMV positions in the ITC context, which practitioners don't often see because disputes are typically resolved through the IRS administrative appeals process. He also predicted project owners will reference the case to understand how courts will evaluate companies' methods for calculating benefits and determining their tax basis.

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