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Tehama County auditor: $1.4 million federal rebate received for county solar project, loan principal to be reduced
Summary
The county’s auditor-controller reported receiving $1.4 million from the IRS under the Inflation Reduction Act’s extended credit for tax-exempt agencies and said she will use roughly $1.375 million to pay down principal on a $7.5 million Aircon solar and efficiency loan, shortening its term and saving about $500,000 in interest.
Krista Peterson, Tehama County auditor-controller, told the board March 10 that the county received $1,400,000 from the Internal Revenue Service as a tax-exempt entity rebate under the Inflation Reduction Act for the Aircon Solar and Energy Efficiency Project approved in 2022.
The project’s original loan was $7,500,000 at 2.42% interest over 18 years. Peterson said the county contracted Wiese Law to apply for the exempt-agency rebate; the reimbursement covers eligible equipment costs for the solar arrays. She proposed using $28,813.75 of the funds to reimburse the auditor-controller’s budget and applying approximately $1,375,000 to principal reduction on the loan, which would shorten the loan by about 3½ years and save an estimated $500,000 in interest.
Why it matters: The rebate reduces the county’s capital financing burden for the installations that serve multiple county facilities and accelerates debt reduction on an existing loan. Peterson asked for no objection to her planned allocation of the rebate proceeds and reported the payment as positive fiscal news.
The board acknowledged the report; no separate board vote was required to accept the rebate, but Peterson indicated she would proceed absent objection.
