1 hour watch | July.23.2026
On Wednesday, July 22, Orrick's Energy Tax Team hosted a webinar discussing the U.S. Court of Federal Claims' recent decision in Alta Wind I Owner-Lessor C, et al. v. United States, the latest chapter in a 13-year dispute over Section 1603 cash grants for six California wind facilities. The decision addresses how to the cash grant-eligible projects should be valued and compares the plaintiffs' proposed discounted cash flow approach and the government's cost approach, with the court favoring the cost approach and, importantly, permitting some amount of developer profit to be included in the cost approach valuation.
Our discussion focused on breaking down the court's reasoning, the implications for renewable energy project valuations and Section 48 investment tax credit transactions more broadly, and providing practical insights on substantiating developer profit margins, documenting legacy development fees and navigating appraisal, cost segregation, and Section 1060 allocation scrutiny under current deal structures.
A recording of the discussion is provided below. Please also refer to Orrick's Energy Tax Resource Center for the latest updates.
Download Webinar Materials – Cost Approach Prevails in Alta Winds
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