In its IPO filing, SolarCity reveals it has been subpoened by the Treasury Department to provide records dating back to 2007.
The department’s inspector general is investigating the Treasury’s Section 1603 program which, during the depths of the recession, sought to keep the solar industry growing by allowing developers/ investors to recover 30% of their construction costs in cash. That has since reverted back to a tax credit.
The program applies to wind, biomass and other renewable energy sources.
The watchdog is looking for "possible misrepresentations" about the fair market value of solar systems that received grants, reports Reuters.
Other big players in solar have also received subpoenas.
As of July 20, over 44,000 solar projects received funding and about $2.7 billion of the program’s $13 billion had been spent, according to the Treasury. The solar portion of the program runs through 2016.
If the Treasury finds any misrepresentations, company recipients could face damages, penalties and tax liabilities.
In its IPO filing, SolarCity says it will take a minimum of six months to gather the required documents and about a year for the Inspector General to conclude its review.
The Internal Revenue Service is also auditing two of SolarCity’s investment funds to examine the fair market value of the solar systems that received grants, says SolarCity’s filing.
The IPO filing also reveals that SolarCity isn’t profitable yet and that it has a $70.3 million debt.
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