On August 14, two U.S. Court of Appeals released decisions regarding the interplay between environmental law and the federal tax code.
In the case of Green Gas Delaware Statutory Trust, et al. v. Commissioner of IRS. The Court of Appeals for the District of Columbia Circuit affirmed the ruling of the Tax Court that the appellants could not claim federal tax credits connected with the generation and sale of “landfill gas” that is produced from decomposing landfill waste. Chief Judge Garland’s opinion begins with
Rumpelstiltskin could spin straw into gold. Rumpelstiltskin, Inc. thought it could do the same for garbage, spinning it into tax credits. The Commissioner of the Internal Revenue Service disagreed. So did the Tax Court. So do we.