Treasury issues guidance on calculating eligible basis for solar property under section 1603 renewable energy grants-in-lieu of tax credits

Alternative & Renewable Energy Tax Newsalert

On June 30, Treasury posted guidance how eligible basis determinations are made under the Section 1603 grant-in-lieu of renewable energy tax credits.

The guidance sets forth general tax principles that basis generally is the cost of property plus other appropriate intangible costs. However, the guidance notes that basis may be adjusted by the Treasury where it believes that a taxpayer's proposed basis in a particular piece of property does not reflect true economic cost.



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