LIMA, Ohio (WLIO) – Some Ohio mayors are urging federal lawmakers to preserve a provision that allows cities to receive tax credits for investing in clean energy projects.
Lima Mayor Sharetta Smith joined mayors from Solon and Athens, Ohio, to discuss how they utilized the Direct Pay provision in the Inflation Reduction Act to secure tax credits for local projects.
Lima is installing a floating solar field on the Twin Lakes Reservoir to help reduce energy costs at the city’s water treatment plant. Mayor Smith said it costs the city about $1 million annually to operate the plant, and the solar panels are expected to save Lima an estimated $200,000 in the first year and more than $10 million over the lifetime of the project.
Lima is installing a floating solar field on the Twin Lakes Reservoir to help reduce energy costs at the city’s water treatment plant.
“The project is leveraging $898,000 in Direct Pay Tax Credits. So, that is a significant amount of money. And for us, this would not be a project that we would be able to do without the direct pay credits. And not only does the posturing of the current legislation threaten this project, it also threatens us being able to be innovative and think about other ways about how we can protect our environment as well as continue to save energy costs for our residents,” said Mayor Sharetta Smith.
The U.S. House Ways and Means Committee is expected to review the reconciliation package next week, which could affect the future of direct pay tax credits for governments and other tax-exempt organizations.
