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Council clears two solar resolutions to preserve federal tax‑credit options, including low‑income set‑aside
Summary
The council approved a resolution confirming no interconnection agreement is required for a municipal solar project and approved a second resolution to pursue a qualified low‑to‑moderate‑income benefit program to secure additional federal tax credits, with a Feb. 14 deadline to be 'in line' for priority consideration.
Speaker 5 (Glenn) told the council the city could pursue up to about 3 megawatts of municipal solar and that recent federal rule changes add as much as 20 percentage points to a project’s tax credit if the project establishes a qualified low‑to‑moderate‑income benefit program. Glenn said that, combined with existing base credits (described in the packet as roughly 30% or 40% depending on domestic content and qualifications), the additional credit could approach a 60% subsidy, substantially reducing project cost if the IRS approves the city’s program.
Council members asked how the low‑to‑moderate‑income savings pool is calculated; Glenn said it is based on an avoided‑cost formula (market‑based power) and that 50% of the avoided‑cost savings would be committed to qualifying customers under the program. He told the council the Feb. 14 window mattered for being early in the approval line and that the city would need to submit a program plan to the IRS for approval after making a timely commitment; consultants are available to guide the city through program design.
On separate motions, the council approved first a resolution confirming the city’s ownership of a municipal system means an interconnection agreement with another utility is not required for that facility, and second a resolution determining the advisability of establishing a qualified low‑to‑moderate‑income benefit program for the solar facility. Both motions passed by voice vote. Council members agreed staff should present more detail at the upcoming workshop and that final program design and IRS approval are required before any tax credit is guaranteed.
