Tax News & Views: Sewing Up Clean Energy

Trina Pinneau
June 13, 2024

Key Takeaways

  • Clean energy sellers
  • Grid planning for hydrogen
  • Erroneous notices
  • "Survivor" tax bill
  • Stock buyback tax
  • Seniors being scammed
  • Tennessee franchise tax refund

Clean Energy Focus

Clean Energy Credit Sellers Look Beyond Wall Street for Buyers - Caleb Harshberger, Bloomberg:

Green energy developers are looking to increase the market for energy tax credits by appealing to corporations in addition to their traditional investment bank customers.

The 2022 tax-and-climate law known as the Inflation Reduction Act allowed green energy developers to effectively sell credits for the first time. The move, plus the establishment of generous new and beefed-up tax credits, set off a wave of renewable energy development.

To cash in on the growing supply of credits, sellers will have to expand the pool of interested buyers beyond the traditional energy tax credit investors of big banks and other investment firms, since supply of the credits is now exceeding demand. Corporate buyers are gaining in interest, but for many, it’s the first time delving into the world of green energy tax credits.

Hydrogen’s Power Demand Calls for Grid Planning, Regulator Says - Daniel Moore, Bloomberg:

Hydrogen producers should engage in long-term electric grid planning required by a transmission rule finalized last month to avoid potentially straining the power grid, a US energy regulator said Wednesday.

The Federal Energy Regulatory Commission finalized the major rule May 13 that requires 20-year assessments of the grid, including impacts from the changing power-and-demand mix and extreme weather events. FERC and state regulators are confronting an unexpected rise in demand from data centers and facing challenges in getting long-range transmission lines permitted and constructed to connect more power plants.


Notices in Error

Some Taxpayers Are Receiving Erroneous Balance-Due Notices Benjamin Valdez, - Tax Notes ($):

The IRS said that some taxpayers are receiving improper balance-due notices and that it is looking into the issue.

In a June 12 statement, the agency said it is aware that some taxpayers who paid taxes electronically for tax year 2023 are receiving CP14 notices indicating a balance due even though they have made the tax payments.

“The IRS is researching the matter and will provide an update as soon as possible,” the agency said in the statement. Affected taxpayers don’t need to respond to the notice if they paid the tax they owe on time, the IRS added.


Surviving Taxes

First 'Survivor' Winner Wants $3M Tax Case Tossed - Anna Scott Farrell, Law360:

The winner of the first season of the TV series "Survivor" asked a Rhode Island federal court to toss the government's case against him seeking nearly $3.3 million in unpaid taxes, saying the liabilities stem from his flawed criminal conviction for tax evasion nearly 20 years ago.


Stock Buyback Tax

Group Asks IRS to Omit ‘Funding Rule’ in Stock Buyback Tax Regs - Jeffrey Horst, Bloomberg:

A business group is calling on the IRS to scrap part of its proposed regulations on the stock-buyback tax, saying the agency’s efforts to fix a problem with the regulations don’t go far enough.

The IRS should eliminate the regulations’ “funding rule,” the National Foreign Trade Council said Tuesday in a comment letter. The funding rule would impose the 1% tax on foreign corporations’ stock repurchases if they are indirectly funded by US subsidiaries for the “principal purpose” of avoiding the tax.


Scam Awareness

IRS warns against scams targeting seniors; joins other federal agencies to recognize special awareness day - IRS:

As part of continuing efforts to protect the senior community, the Internal Revenue Service today issued a warning about the rising threat of impersonation scams

These scams are targeting older adults by pretending to be government officials, aiming to steal sensitive personal information and money. By posing as representatives from agencies such as the IRS, or other government agencies, these fraudsters use fear and deceit to exploit their victims.


Tennessee Franchise Tax Refund

Tennessee Businesses Move Fast to Grab $1.55 Billion Tax Refunds - Michael J. Bologna, Bloomberg:

Tens of thousands of businesses are determining their eligibility for a piece of Tennessee’s $1.55 billion franchise tax refund bonanza before the fast-tracked program expires at the end of November.

Tax practitioners are advising clients that paid Tennessee’s business franchise tax over the past three years to quickly file amended returns and refund claims. The state Department of Revenue sent notices to about 100,000 business taxpayers in the last month and published guidance and frequently asked questions describing the eligibility and filing requirements.


Praise of IRS

Appropriators Praise IRS Overhaul, Deny Big-Dollar Transfers - Doug Sword, Tax Notes ($):

House Republicans say they are pleased with the IRS’s latest efforts to modernize its outdated information technology systems and directed the agency to build the capacity to provide real-time tax information access to the public and boost its use of artificial intelligence.

In a new House Appropriations Committee report, the panel applauded the IRS’s use of fixed-price, outcome-based contracting when it comes to hiring outside contractors to manage IT improvements and ordered the agency to expand the practice.


What day is it?

Its National Sewing Machine Day! Not crafty? Try celebrating International Axe Throwing Day instead!

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About the Author(s)

Trina Pinneau photo

Trina Pinneau

Senior Manager
Trina has more than 10 years of public accounting experience providing tax consulting services and analyzing complex tax situations. She has spent the majority of her time in the credits and incentives space with a focus on energy credits and excise taxes. Trina also has experience in tax controversy and accounting methods. In joining Eide Bailly's National Tax Office Trina is focusing her efforts on energy efficiency incentives while being a resource for the excise and tax controversy team.

Any opinions expressed or implied are those of the author and not necessarily those of Eide Bailly. Opinions found in linked items are those of the authors of the linked item, not of your bloggers or of Eide Bailly. “$” means link may be behind a paywall. Items here do not constitute tax advice.