Albertson's, Inc., Petitioner-Appellant-Cross-Appellee v. Commissioner of Internal Revenue, Respondent-Appellee-Cross-Appellant

I. OVERVIEW

Petitioner Albertson’s, Inc. (“Albert-son’s”) appeals two decisions of the United States Tax Court. In the first decision, the Tax Court held that Albertson’s was not entitled to claim work incentive tax credits (‘WIN credits”) retroactively for its past hiring of certain welfare recipients. See Albertson’s, Inc. v. Commissioner, 59 T.C.M. (CCH) 186 , 1990 WL 29271 (1990). In the second decision, the Tax Court held that Albertson’s was not entitled to claim current deductions for interest-like obligations that had accrued under deferred compensation agreements (“DCAs”) made with certain of its top executives and directors. See Albertson’s, Inc. v. Commissioner, 95 T.C. 415 , 1990 WL 149185 (1990).

Respondent Commissioner of Internal Revenue (“Commissioner”) cross-appeals a third decision of the United States Tax Court. In the third decision, the Tax Court held that Albertson’s was entitled to claim investment tax credits for its heating, venti-ting, and air-conditioning (“HVAC”) systems. See Albertson’s, Inc. v. Commissioner, 56 T.C.M. (CCH) 928 , 1988 WL 137121 (1988).

We affirm the Tax Court with respect to its judgment on the first issue (WIN credits).…