FINANCIAL BUSINESS REQUEST (FBR)
Motion/Request:
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Motion to authorize the expenditure of up to $25,000 from account #21090305-58915 CNR Undesignated to hire a consultant to assist with cost segregation analysis and form 990-T filings in order to secure investment tax credits (direct pay) available under IRC section 6417. In addition, upon receipt of said tax credit, restore funding in the same amount to the Undesignated line in CNR.
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Background:
During preliminary audit discussions with our audit firm relative to the FY 24/25 fiscal audit, a federal tax credit program was identified that would provide federal tax credits in the form of a tax refund for eligible solar expenditures. Both the Gales Ferry School Roof Project and Juliet Long School Roof Project have a solar component.
The tax credit would be limited to 38.57 % of eligible costs which represents the non-grant funded portion of the solar project.
The solar cost of both projects approximates $1.5 million dollars not including soft costs which would be partially eligible. The tax credit could be upwards of $500,000 which would then be used to offset the amount the town would need to permanently finance (bond) when the projects are completed.
Multiple Connecticut cities and Towns have already applied for and received these types of credits.
Department Comment/Recommendation:
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Finance Director Comment/Recommendation:
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Mayor Comment/Recommendation:
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