Consultant outlines Inflation Reduction Act opportunity for county geothermal system; fee contingent on award

A consultant told the Pottawattamie County Board of Supervisors May 13 that the Inflation Reduction Act of 2022 creates a cash opportunity for tax-exempt entities that installed geothermal systems and offered a contingency-fee consulting agreement to pursue the credit for the county's roads operations center.

Adam Herring, president of Afton Energy, told the board the program allows tax-exempt entities including counties to receive the full value of a tax credit in cash and that a county installing geothermal is eligible for a guaranteed 30% of the total project cost, with possible additional bonus credits raising the total to 40% depending on eligibility. "You are eligible for a guaranteed 30 percent of the total project cost," Herring said. He described the firm's process: review plans, interview contractors and count eligible components per IRS rules to maximize the qualified project cost, and only invoice the county if the award is received.

The consultant said his firm makes its fee contingent on the grant award for existing projects and that there is no program cap; he estimated the county's project cost would be in the "hundreds of thousands" and said the engagement would seek to identify every eligible component per IRS regulations. Board members asked about the basis for cost calculations and the mechanics of the contingency fee; the consultant said he would work with county documents and that the fee is a percentage of the award and would not be invoiced unless funds are received.

The board did not record a formal vote on the consulting agreement in the provided transcript excerpt; supervisors asked clarifying questions about scope and next steps.