Timothy L. Jacobs

Tim’s practice focuses on all areas of federal income tax law, with emphasis on clean energy tax credits and federal tax controversies.

As a member of the Renewable Energy Tax Team, Tim is involved in every aspect of achieving recognition of tax incentives from the legislative process, to the Treasury and IRS guidance phase, to the forward-planning phase, to representing industry leaders in the renewable space, and finally to defending tax incentives at both the administrative and court level. Tim is highly engaged in providing direct support to clients in navigating the Inflation Reduction Act of 2022.

Tim served as an attorney-advisor to the Hon. Michael B. Thornton (2003-2005) and the Hon. Robert P. Ruwe (2001-2003) on the US Tax Court, and has particular knowledge in the areas of Tax Court practice, procedure, and litigation. Tim practices regularly in the Tax Court and the US Court of Federal Claims and also is admitted to practice in the US Supreme Court, and the US Courts of Appeals for the Third, Fourth, Sixth and Federal Circuits.

• Deeply engaged in the representation of many of the major stakeholders with respect to the Inflation Reduction Act (IRA) and formulation of policy and guidance under the IRA.
  • Prepared leading publicly-filed comments on various aspects of the IRA tax credits.
  • Testified in public hearings on proposed regulations, including section 6417 elective -payment, section 6418 elective transfer of tax credits, prevailing wage and apprenticeship requirements, section 48 investment tax credit, section 45X advanced manufacturing tax credit, section 45V clean hydrogen production tax credit, section 45Y/48E technology neutral tax credits, and section 48C advanced energy project credits.
  • Direct interface with tax policy and regulatory functions of the Executive Branch, including White House officials, U.S. Department of the Treasury, Internal Revenue Service, and U.S. Department of Energy.
  • Represent top manufacturers in the wind, solar, hydropower, nuclear, and hydrogen industries, as well as key suppliers of energy components and critical materials in the clean energy supply chain.
  • Technical tax advisor to diverse client base from manufacturers to financial institutions to tax-exempt entities under elective payment to sellers/buyers in tax credit transfers
  • One of the principal technical advisors to the clean energy industry on the domestic content bonus credit and prevailing wage and apprenticeship (PWA) rules.
  • Counsel to the seller in one of the largest tax credit transfers ($700MM) of 2023.
  • External tax counsel to the National Hydropower Association. Regularly interact with the leading trade and industry organizations.
• Represent and advise applicants and taxpayers in clean energy tax controversies.
  • Lead counsel for plaintiff in Silver State Solar Power South, LLC v. US, Fed. Cl. Case No. 18-266T, involving approximately $136 million in Section 1603 payments at issue.
  • RP1 Fuel Cell LLC, et al. v. US, 120 Fed. Cl. 288 (Mar. 31, 2015). Full win in case involving fuel cell power plant and scope of property eligible for Section 1603 grant. Affirmed on appeal to the Federal Circuit (No. 15-5106), 644 Fed. Appx. 1012 (2016), which Tim briefed and argued.
  • GUSC Energy, Inc. v. US, 129 Fed. Cl. 118 (2016) (cogeneration facility; use of steam for electric and thermal energy) (partial judgment in favor of plaintiff).
  • W. E. Partners II, LLC v. US, Fed. Cir. No. 15-5054 (counsel for amicus curiae American Forest and Paper Association).
  • Nearly twenty years of experience advising taxpayers on compliance issues in the renewable energy industry (wind, solar, biomass, hydropower, fuel cells, combined heat and power, cogeneration facilities) with respect to the Section 1603 grant, the investment tax credit (ITC), and production tax credit (PTC).
  • Successfully tried foreign tax credit case in the US Tax Court involving the creditability of the UK Windfall Tax. In a unanimous 9-0 opinion, the US Supreme Court agreed with this holding based on the Tax Court record and opinion.
  • PPL Corp. & Subs. v. Comm’r, 135 T.C. 304 (2010).
  • PPL Corp. & Subs. v. Comm’r, 569 US 329 (May 20, 2013).
• Successfully tried utility industry issue in the US Tax Court involving the depreciation period of street lights.
  • PPL Corp. & Subs. v. Comm’r, 135 T.C. 176 (2010).
• Representing taxpayers in complex IRS proceedings involving financial products and financial instruments. Issues handled include the classification of a transaction as a hedging transaction, treatment of original issue discount (OID) and contingent payment debt instruments, and intangible asset classification.
• Successfully tried four consolidated cases involving alleged intermediary transactions in US Tax Court. Tax Court issued sweeping precedent opinion on correct application of transferee liability rules to such transactions. Won motion to transfer venue in Sixth Circuit. Government conceded case after venue transferred to Fourth Circuit.
  • Swords v. Comm’r, 142 T.C. 317 (May 29, 2014).
  • Swords Trust v. Comm’r, Order Transferring Venue, 6th Cir. No. 14-2279, et al., 2014 WL 7929830 (Dec. 18, 2014).
• Litigated cases in US Tax Court involving conservation easements, including valuation issues, partnership issues, and the application of partnership disguised sale rules.
  • Route 231, LLC Comm’r, T.C. Memo. 2014-30 (Feb. 24, 2014) (holding that disguised sale rules apply). Handled and argued appeal in US Court of Appeals for the Fourth Circuit (Case No. 14-1983), 810 F.3d 247 (2016).
  • SWF Real Estate LLC v. Comm’r, T.C. Memo. 2015-63 (Apr. 2, 2015). Full win on valuation issue reversing approximately $5 million adjustment.
  • Squires v. Comm’r, Tax Ct. No. 12683-15 (conservation easement and valuation issues) (settled with substantial concession by IRS).
  • Fairborn Wright, LLC v. Comm’r, Tax Ct. No. 18098-10 (settled).
  • Carlyle Commonwealth Fund, LLC v. Comm’r, Tax Ct. No. 18097-10 (settled).
• Served as an expert witness in state court litigation involving the IRS’s evolving administrative position on the treatment of façade easements.
• Advise and represent individual taxpayers in “high-net worth” and “high-income” audits by IRS. Substantial experience in purported “family office,” “trade or business” determinations, and treatment of IRC Section 212 investment expenses.
• Advise and represent financial institutions, state and local government entities and authorities, and other taxpayers with respect to information return filings, classification of employees, treatment of settlement payments, and penalties.
• Successfully handled numerous claims for abatement of penalties (in some cases, involving millions of dollars). Considerable experience with penalties applied with respect to missing or incorrect Taxpayer Identification Numbers (TINs) and mass filing errors.
• Many years of experience negotiating with lead IRS contacts with respect to voluntary compliance agreements for information return and other errors.
• Successfully litigated a high-profile, national issue involving the validity of a regulatory statute of limitations under the Chevron deference standards and an issue of first impression involving the application of the tolling rules under Treas. Reg. § 301.9100-3. Argued case before Court of Appeals for the Fourth Circuit.
  • Jones v. Comm’r, Tax Ct. No. 08-17359 (summary judgment).
  • Jones v. Comm’r, 642 F.3d 459 (4th Cir. 2011) (precedent opinion).
• Fully briefed and submitted in the US Tax Court a high-profile corporate tax issue involving the rescission of a corporate dividend. Issue resolved favorably to taxpayer without decision.
  • PPL Corp. & Subs. v. Comm’r, Tax Ct. No. 25393-07.
• Successfully represented company in obtaining pre-filing agreement from IRS permitting deduction of a substantial portion of the company's settlement of one of the largest judgments under the Federal False Claims Act.
• Successfully represented energy company before the IRS National Office as part of its technical advice process with respect to a substantial disallowance of tax credits and application of penalties. The issue involved the identification of the facility and whether it was timely placed in service. Tech. Adv. Memo. 201113025 (Apr. 1, 2011).
• Successfully represented public entity in connection with one of the largest transportation projects in the US obtaining a private letter ruling that relocation of utility lines and payments to an electric utility were excludable from income. Ltr. Rul. 200952014 (Dec. 24, 2009).

• Recognized as a Best Lawyer for Tax Law, The Best Lawyers in America, 2024
• The Community Tax Law Project Pro Bono Volunteer of the Year, 2007

• Advisory Board Member and Past President, Board of Directors, The Community Tax Law Project, Richmond, Virginia
• Barrister, J. Edgar Murdock Inn of Court, US Tax Court
• American Bar Association, Tax Section
• District of Columbia Bar Association, Tax Section