The U.S. Court of Appeals for the District of Columbia Circuit today affirmed a decision of the U.S. Tax Court that had upheld the IRS’s disallowance of credits under then-applicable section 45K relating to certain landfill gas operations.
The section 45K credit provisions expired in 2007.
The case is: Green Gas Delaware Statutory Trust v. Commissioner, No. 17-1025 (D.C. Cir. August 14, 2016). Read the D.C. Circuit’s decision [PDF 107 KB]
Between 2005 and 2007, the taxpayer trusts claimed $11.7 million in section 45K credits for selling landfill gas. The IRS disallowed all but $586,000 of the section 45K credits. Specifically the IRS excluded all claimed credits from venting / flaring landfills and credits for landfill gas vented or flared from gas-to-electricity landfills when the gas-to-electricity equipment was non-operational. The Tax Court upheld the IRS determinations. The Tax Court concluded that:
The trusts appealed, and the D.C. Circuit today affirmed the Tax Court’s decision.
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