03 Dec 2024
How Can I Make It Up to You? Using the PILT Program for Lost Revenue on Federal Lands
The Department of the Interior's (DOI's) Payments in Lieu of Taxes (PILT or PILOT) program, is a federal initiative that offsets the loss of property tax revenue for local governments due to the presence of nontaxable federal lands within their jurisdictions. Payments are intended to supplement other federal revenue-sharing payments and can be used for any governmental purpose. DOI's Office of the Secretary administers the PILT program, calculating and distributing payments according to statutory formulas. By understanding the PILT program and its eligibility criteria, you can assist your government clients in maximizing their potential benefits and ensuring they receive fair compensation for the nontaxable federal lands within their boundaries.
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- Business Entities. IRS and Treasury finalized regulations making it easier for tax-exempt entities that co-own development projects to qualify for a direct cash payment of clean energy tax credits by electing out of their partnership tax status. IRS and Treasury also proposed regulations that set forth administrative requirements for unincorporated organizations to elect out of Subchapter K to take advantage of the partnership rule changes for direct pay. 89 Fed. Reg. ___ (unpublished version) (final regulations); 89 Fed. Reg. ___ (unpublished version) (proposed regulations).
- Business Entities. IRS and Treasury issued final regulations to implement the advanced manufacturing investment credit established by the CHIPS Act of 2022 to incentivize the manufacture of semiconductors and semiconductor manufacturing equipment within the United States. D. 10009, 89 Fed. Reg. 84732 (Oct. 23, 2024).
- Excise Taxes and Credits. IRS and Treasury issue guidance regarding the sustainable aviation fuel (SAF) credits under I.R.C. §§ 40B and 6426(k). R.S. Notice 2024-74.
- Practice, Procedure, and Controversy. Fifth Circuit Court of Appeals narrowed use of the Section 501(c)(4) exemption commonly used by “dark money” groups to influence U.S. politics. Mem'l Hermann Accountable Care Org. v. Commissioner, 2024 U.S. App. LEXIS 27354 (5th Cir. Oct. 28, 2024).
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