IRS PLR: Foundation’s Proposed Grants to Public Entities Consistent With Tax-Exempt Purpose (IRC §4942)

The IRS ruled that an electric utility-founded nonprofit private foundation’s proposed grants to public entities to offset the difference between the purchase cost of traditional gasoline or diesel vehicles and the higher cost of low- or no-emission electric vehicles (1) will be considered qualifying distributions under tax code Section 4942(g); (2) will not constitute taxable expenditures described in Section 4945; (3) will not cause Foundation to serve a private interest as described in Treasury Regulations Section 1.501(c)(3)-1(d)(1)(ii); and (4) will not constitute acts of self-dealing between Foundation and Utility (a disqualified person with respect ...