U.S. And Foreign Businesses: You Are Now “Virtually” Certain To Have Multistate Tax Obligations

On June 21, 2018, a 5-4 decision from the U.S. Supreme Court eliminated the “physical presence” safe harbor from state sales taxation that had stood since 1967. Until now, businesses – including non-U.S. businesses – with no physical presence in a given state (“customer state”) did not have to bother with the various sales tax rules of that state, much less register and then collect and remit the various sales taxes within that state. […]

By |September 10th, 2018|

Tax Incentive Update: Federal Circuit Rules On Calculation Of Basis For Energy Projects

Recently, in Alta Wind I Owner Lessor C et al. v. United States (“Alta Wind”),1 the US Court of Appeals for the Federal Circuit (“Federal Circuit”) vacated and remanded the decision of the US Federal Court of Claims (“Claims Court”), which had awarded the owners of six California wind farms approximately $206 million of Section 1603 grants.2 Certainly, the renewable energy industry would have preferred the lower court’s decision to have been upheld.

Nonetheless, for the various reasons discussed […]

By |September 7th, 2018|

Tax-Exempts May Limit Fund Investments Pursuant To New IRS Guidance On UBTI

On August 21, 2018, the Internal Revenue Service (“IRS”) released Notice 2018-67 (the “Notice”), addressing issues relevant to tax-exempt organizations arising under new Section 512(a)(6) of the Internal Revenue Code (the “Code”), promulgated pursuant to the 2017 U.S. tax legislation that is commonly referred to as the “Tax Cuts and Jobs Act.”  Section 512(a)(6) requires tax-exempt organizations to compute unrelated business taxable income (“UBTI”) separately with respect to each unrelated trade or business, and precludes the […]

By |September 6th, 2018|