By Natalie Maloney
Victory for taxpayers in Texas! In an opinion delivered on New Year’s Eve, the San Antonio Court of Appeals held in a wind energy valuation case that production tax credits and power purchase agreements are intangible personal property and not taxable for property tax purposes.
The Court’s language is crystal clear: “We conclude PPAs are contracts and, as intangible personal property, they may not be taxed under the Texas Tax Code and must be excluded from an ad valorem tax valuation.” And: “Accordingly, we hold PTCs are intangible personal property that are exempt from ad valorem taxation under Texas tax law.” The opinion vindicates not only the rights of taxpayers and owners of renewable energy property, but the plain language of the Tax Code on the taxability of intangibles.
Congratulations to the Rocksprings Val Verde Wind legal team: trial counsel Bill Sullivan and Alicia Grant, and appellate counsel, Hayley Ellison and Nissa Dunn.
Read the opinion here: https://lnkd.in/gPpwQ_cH