- 8 -8 $1,368 to petitioner for the use of "Area B", and on paragraph 4 of the Agreement, which stated that petitioner was to furnish "such systems and utilities" as required to accommodate the safe and efficient use of the WTC Equipment. Petitioner made a similar argument in United States v. Norstam Veneers, Inc., 95-1 USTC (CCH) par. 50,034, 75 AFTR2d 95-591 (S.D. Ind. 1994). In that case, petitioner litigated its entitlement to section 29 credits for its 1987 and 1988 tax years (i.e., tax years preceding its Agreement with WTC) and contended that, because biomass was an integral part of the process by which veneer was produced, the biomass had become part of the product and was thereby "sold" to an unrelated person. The District Court rejected Norstam's argument. The court noted that section 29 required a sale of a qualified fuel--not merely of products produced through the use of a qualified fuel. The court stated that Norstam's position confused process with product. "Using Norstam's logic," the court wrote, "we could similarly argue that Indiana corn, if eaten by Norstam workers, powered the muscles which helped produce the veneer, and thus is also part of Norstam's product." Id. Petitioner's argument in the present case is equally unpersuasive. Petitioner's position is undermined by the express terms of the Agreement. The Agreement contains no indication that part of WTC's "fixed payment" to petitioner was intended to pay for the purchase of biomass. Indeed, the Agreement providedPage: Previous 1 2 3 4 5 6 7 8 9 Next
Last modified: May 25, 2011