The U.S. Department of Treasury issued guidance to assist taxpayers with preparing Section 1603 grant applications by outlining the Treasury processes used to evaluate cost basis.

Recently, the U.S. Department of Treasury issued a document (Basis Guidance) intended to assist taxpayers in determining their cost basis in solar photovoltaic property for purposes of the cash grant provided by the Treasury pursuant to Section 1603 of the Recovery and Reinvestment Tax Act of 2009 (Grant). The Basis Guidance is intended to outline the process used by the Grant team at Treasury to evaluate basis and the principles guiding that process. Although the Basis Guidance only specifically addresses solar property, it indicates that the methods described apply to all types of properties. Below is a brief summary of the Basis Guidance, which can be found in its entirety here (Please see below for link).