Tribe may no longer pass renewable-energy credits to lessee
Number
201640010
Outcome
Revocation
Document type
Private Letter Ruling
IRS subject
General Business Credit
Topics
Code sections
§ 38, § 50, § 6110
Ruling dated
June 29, 2016
Publicly released
September 30, 2016
Source
Apply this to your situation
This page covers one taxpayer's ruling, issued in 2016, which can't be cited as precedent. Ask about your situation and see what the current Code and IRS guidance say, with citations.
Not precedent. Under 26 U.S.C. § 6110(k)(3), this written determination may not be used or cited as precedent. It resolved one taxpayer's situation on its specific facts, and identifying details were redacted by the IRS before release. The official IRS release (linked on this page as a PDF) is the authoritative source.
About this page: The plain-English summary and ruling snapshot below were written by Ezel based on the official IRS release. The full text is the IRS's own document.
View official IRS release (PDF)
Plain-English summary
An earlier private letter ruling allowed a tribe to elect under section 50(d)(5) to pass investment credits associated with renewable-energy assets to an unrelated lessee. After reconsideration, the IRS concluded that the tribe could not make that election. The IRS prospectively revoked Private Letter Ruling 201310001. The tribe could place no further reliance on the earlier ruling.
Ruling snapshot
- Question: Could a tribe pass renewable-energy investment credits to an unrelated lessee under section 50(d)(5)?
- Outcome: Revocation, effective prospectively.
- Key authorities: IRC §§ 38, 50(d)(5).
Full text (IRS public release)
Internal Revenue Service Department of the Treasury
Washington, DC 20224
Number: 201640010 Third Party Communication: None
Release Date: 9/30/2016 Date of Communication: Not Applicable
Index Number: 38.00-00, 50.00-00
Person To Contact:
----------------- ---------------, ID No. ----------------
------------------------------------- Telephone Number:
--------------------------------------------------- --------------------
------------------------------- Refer Reply To:
-------------------------- CC:PSI:5
PLR-117279-16
In Re: --------------------------------------------------- Date:
June 29, 2016
LEGEND:
Tribe = ---------------------------------------------------
----------------------
Dear ------------:
As discussed in a telephone conversation with Taxpayer’s authorized
representative, we are revoking Private Letter Ruling 201310001, dated
December 5, 2012.
In Private Letter Ruling 201310001, the Internal Revenue Service concluded that
Tribe may elect to pass investment credits associated with the Renewable Energy
Assets to an unrelated third party lessee (Lessee) under § 50(d)(5).
After reconsideration, we have concluded that Tribe may not elect to pass
investment credits associated with the Renewable Energy Assets to Lessee under
§ 50(d)(5). Accordingly, Private Letter Ruling 201310001 is revoked prospectively, and
Tribe may place no further reliance on the ruling.
PLR-117279-16 2
In accordance with the power of attorney, we are sending a copy of this letter to
Tribe’s authorized representative. We are also sending a copy of this letter to the
appropriate SB/SE office.
Sincerely yours,
Theresa M. Melchiorre
Assistant to the Branch Chief, Branch 5
Office of Associate Chief Counsel
(Passthroughs and Special Industries)
Enclosure:
Copy for 6110 purposes
cc:
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