Tax Normalization, Net Operating Losses, and Intercompany Tax Allocation Payments

Brad M. Seltzer | Holland & Knight

[email protected]

Bradley Seltzer is a tax attorney in Holland & Knight’s Washington, D.C., and Newport Beach offices. Mr. Seltzer brings more than 40 years of experience representing Fortune 100 utility, energy and telecommunications (telecom) clients in complex tax matters, including tax planning, accounting and controversy. He defends clients in large tax disputes with the IRS at the trial and appellate court levels, and prepares private letter rulings, technical advice requests and accounting method changes for the IRS.

Mr. Seltzer has extensive experience testifying at public hearings and providing written comments on behalf of clients regarding notices and proposed regulations that affect the utility industry, such as interest synchronization, consolidated tax adjustments, the normalization consequences of dispositions or deregulation, nuclear decommissioning issues, and incentives enacted as part of the Inflation Reduction Act (IRA). He also counsels on tax saving strategies, including qualifying for the tax incentives enacted as part of the IRA, and manages complex tax refund claims, audits, appeals and litigation. Mr. Seltzer also serves as an expert witness in federal and state ratemaking proceedings regarding deferred taxes, normalization and consolidated returns, and also assists client witnesses in preparing their testimony in such rate cases.

In addition, Mr. Seltzer is a frequent speaker on utility and telecom tax topics at various industry conferences as well as before various trade associations and professional organizations, including the American Bar Association (ABA) Section of Taxation, Edison Electric Institute (EEI), American Gas Association (AGA), National Association of Regulatory Utility Commissioners (NARUC) and the IRS.

Prior to joining Holland & Knight, Mr. Seltzer was a tax partner for a global law firm in its Washington, D.C., office.

Mary Kate Nicholson | Holland & Knight

[email protected]

Mary Kate Nicholson is a tax attorney in Holland & Knight’s Washington, D.C., office. Ms. Nicholson advises clients in federal tax planning, including mergers and acquisitions (M&A), restructurings and spinoffs, in issuing and obtaining tax credit insurance, as well as in tax controversy matters before the IRS, particularly in the renewable energy and utilities sectors.

Ms. Nicholson also focuses her practice in the renewable energy sector, and advises clients on tax credits such as investment tax credits (ITCs), production tax credits (PTCs), carbon capture, hydrogen, electric vehicle, and fuels and other energy tax credits. She represents clients in the traditional and renewable energy sectors in legislative and regulatory efforts, including in obtaining public and private guidance from the U.S. Department of the Treasury and the IRS.

Ms. Nicholson also advises clients with respect to Section 529 qualified tuition plans and other education-savings accounts, as well as various other individual and corporate tax matters.

In addition to her client work, Ms. Nicholson is heavily involved in pro bono work, assisting 501(c)(3) entities and individuals in tax matters.

Prior to joining Holland & Knight, Ms. Nicholson was a tax attorney for a global law firm in its Washington, D.C., office.

Ms. Nicholson also served as a judicial intern for the Honorable Kaye G. Hearn of the South Carolina Supreme Court. In this role, she prepared bench memos concerning various issues, including the statutory interpretation of “gross income” in a municipal ordinance as related to federal and state tax code.

While in law school, Ms. Nicholson was executive editor of the Washington and Lee Law Review.

I. The Basics of Cost of Service/Rate of Return Utility Ratemaking | 2:00pm – 2:20pm

II. Normalization of Federal Tax Benefits (Accelerated Depreciation and Investment Tax Credits) | 2:20pm – 2:40pm

III. The Normalization Consequences of Net Operating Losses | 2:40pm – 3:00pm

Break | 3:00pm – 3:10pm

IV. The Treatment of Intercompany Tax Allocation Payments under Normalization | 3:10pm – 3:40pm

V. The Path Forward: Resolving the inconsistent views of FERC and the IRS | 3:40pm – 4:10pm