IN THIS ISSUE

Strategies for Starting Construction

The race is on to get renewable energy projects in the United States under construction by year end to qualify for cash grants from the US Treasury.

Germany Cuts Solar Subsidy

The German federal cabinet decided in early March to reduce feed-in tariffs for newly-built solar photovoltaic projects in Germany by an average of 15% starting July 1, 2010...

Update: Tax Equity Market

Most renewable energy projects in the United States have been financed in the past largely with tax equity...

Swap Gets Wholesale Generator Into Trouble

KeySpan Corporation, an electric and gas utility in New York, agreed to pay the federal government $12 million in damages in February 2010 for entering into a swap that the government charged kept...

Tax Credits for Green Manufacturers: Who Will Use Them and How

The challenges are only just beginning for companies that were awarded $2.3 billion in tax credits in January as an inducement to build new factories to supply components for the “green” economy...

Court Orders Lender to Continue Funding Defaulted Loan

Citigroup Global Markets Realty Corp ...

Shedding Assets Quickly in Bankruptcy

The credit crunch has not only meant more bankruptcies, but it has also pushed more bankrupt companies into asset sales and liquidations because they are unable to raise the “debtor-in-possession”...

Environmental Update

A decision by the US Fish & Wildlife Service in early March to list a ground-dwelling bird called the greater sage grouse as a “candidate species” for protection under the Endangered Species Act is expected ...

IN OTHER NEWS

Uncertain Tax Positions

Uncertain tax positions will have to be flagged on US tax returns starting this year using a new form the Internal Revenue Service released in mid-April...

California

California will no longer tax cash grants that the US Treasury pays on new renewable energy projects.

Wyoming

Wyoming will start collecting an excise tax of $1 a megawatt hour from wind generators in the state. The tax will apply to electricity generated after 2011...

India

India reaffirmed in late March that companies based in Mauritius do not have to pay capital gains taxes when they sell shares they own in Indian companies.

Build America Bonds

Build America bonds now constitute more than 20% of the municipal bond market, the US Treasury Department said in April...

Utah

Utah will back out the value of production tax credits, investment credits, Treasury cash grants and state tax credits when assigning a value to wind farms, solar, geothermal and other renewable e...

Guarantee Fees

Guarantee fees that a US subsidiary paid to its parent company in Mexico for guaranteeing repayment of debt of the subsidiary did not attract a US withholding tax at the US border, the US Tax Cour...

Production tax credits

Production tax credits for generating electricity from wind, geothermal and closed-loop biomass projects are 2.2¢ a kilowatt hour in 2010, the IRS said in April.

R&D Tax Credits

R&D tax credits are hard to claim because the IRS defines research narrowly, but a federal court decision involving a ship builder sheds light that may help companies in the energy sector...

Smart Grid Grants

Smart grid grants do not have to be reported as income if received by a corporation, the IRS said in March...

A Valuation

A valuation by the IRS showed no meaningful effort by the government to arrive at a proper value, a court said. It denied the government’s claim for more taxes...

A US Airline

A US airline had to withhold taxes on wages paid to foreign flight attendants who staffed flights between the United States and other countries, the IRS said in a long technical advice memorandum ...

Minor memos

There is a growing sense among economists — but not yet politicians — that European-style value-added taxes are inevitable in the United States to deal with the enormous federal budget deficits...