Michigan Tax Law Articles, Blog & Documents | Foster Swift https://www.michigantaxblog.com/category/use-tax Thu, 13 Aug 2026 09:09:58 -0400 Energy Credits Under Scrutiny: What Strieby Means for Investors and Partnerships https://www.michigantaxblog.com/energy-credits-tax-credits-strieby-means-investors-partnerships Nicholas J. Stock II, Michael C. Zahrt energy-credits-tax-credits-strieby-means-investors-partnerships Thu, 05 Feb 2026 09:00:01 -0500 IRS has made a habit of challenging whether a member of a limited liability company that is treated as a partnership for tax purposes is materially participating in the activities of the partnership.

A recent Tax Court case (Strieby v. Commissioner) considers whether the passive activity credit limitation rules of Code Section 469 may prevent taxpayers from claiming energy credits allocated to them by virtue of their membership interests in a partnership.[1]

Facts Presented.

In Strieby, taxpayers invested in a solar farm but their only involvement consisted merely of completing ...

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