VIRTUAL
Emerging Tax Controversy Issues in the Energy Credit Space
Webinar
September 17, 2026
Event details
September 17, 2026
1:00 pm (ET)
This event is in the past. See recordings and other materials from this event below.
As investment in clean energy projects and the use of energy tax credits continue to evolve, taxpayers are facing increased scrutiny of credit qualification, documentation, and compliance. During this webinar, Heather Cooper, Christopher Gladbach, and Shawn O’Brien discussed the emerging tax controversy landscape for energy credits, areas that may draw IRS attention, and practical steps taxpayers can take to prepare for potential examinations.
Top takeaways included:
- Energy tax credit audit activity has increased, but the speakers are not seeing a widespread surge in examinations. The panel noted more questions and examinations over the past year or so than the industry has historically experienced. Some of the current activity may reflect the IRS gathering information and developing its understanding of transactions and structures following significant changes to the law.
- Valuation remains a primary area of IRS scrutiny. The IRS is examining the valuation methods relied on by taxpayers with a focus on certain assumptions and items included in the projected cash flows. The panel also noted that examinations can occur years after a transaction, making it important to focus the IRS on the information and assumptions that were available at the time of the valuation rather than subsequent performance.
- Developer profit and turnkey premiums are receiving attention under the cost approach. The IRS may examine whether these amounts are supported and whether underlying contracts, which could raise questions about potential double counting.
- Other energy credit eligibility issues have generated less audit activity to date. Although taxpayers spend significant time addressing beginning construction, domestic content, energy communities, partnership structures, and other increasingly complex requirements, the panel said they have not yet seen substantial examination activity in many of these areas. That could change as newer rules begin to appear in examinations.
- Credit transfer purchasers are beginning to see IRS examinations and information requests. Initial IRS information requests have generally sought the documentation required under the transfer regulations, along with underlying agreements supporting credit eligibility. The panel noted that it remains to be seen whether examinations of purchasers will lead the IRS to take a deeper look at the seller or developer’s underlying project.
- Taxpayers should prepare for a potential examination before one begins. The panel recommended maintaining organized documentation that can substantiate the transaction and reviewing transfer agreements and insurance policies for notice and cooperation requirements. Once an examination begins, taxpayers can use the opening conference and early IRS information requests to better understand the IRS’s focus, while keeping in mind that response periods can be short and potentially privileged documents may need to be handled separately.
- Procedural considerations can become important if the IRS proposes an adjustment. Depending on the issue, the panel discussed potential challenges to regulations or IRS guidance following Loper Bright, the complexities and deadlines associated with BBA partnership audit procedures, and taxpayers’ ability to pursue IRS Appeals or Fast Track procedures. For valuation disputes, taxpayers also may consider engaging an independent expert to support the original valuation.
Speakers
