The Courier Report on the two Northampton Solar Panels mentioned the Solar Panel Grants and that they were proper because one guy from the DEP said they were. That’s an unproven inductive argument which remains logically unproven.
Two separate grants are involved. One is from PA, the other from Washington and is administered by the IRS. No one from the Federal Government was quoted by the Courier.
Just because someone in authority says it’s proper doesn’t prove it is. Plus, Spox said nothing about the Federal Federal Tax Credit.
1. The report stated: “Max Solar received a $57,915 corporate tax credit from the federal government”
2. The Federal Tax credit is not for government units. From the Instructions for IRS Form 3468: “You cannot claim a credit for property that is: ….Used by a government unit
3. But the news reports indicate the solar panels ‘will be used by the Northampton Bucks County Municipal Authority.’
In addition, the Pennsylvania Public Utility Commission approves Electric Utilities that can sell electricity but there is no information that indicates Max Power is an approved Public Utility.
If the solar panels are used to generate clean energy by the Authority for the use of the Authority the Federal Tax Credit should not apply.
The IRS is the Federal Agency that needs to approve a Federal Tax Credit on form 3486. They were not invited to the dedication. Wonder why not?
The Courier did not mention a Power Purchase Agreement which appears to be a financing work-around to legitimize the prohibited Federal Tax Credits. The seller of the system, Northampton Republican Supervisor Candidate Barry Moore set up a power purchase agreement and the Sewage Board signed it.
Sewage Board Chairman said in public the Authority does not own the Solar Panels. The PPA seems to be a financial Oxy-moron, -a permitted prohibition.
The more you find out, the more corrupt it seems. As I said at the Sept 25 Supervisor meeting, this deal doesn’t pass the smell test. It stinks.
The PPA includes lots of money that is not detailed in the deal. When the costs are sufficiently detailed they should show the the interest cost but the PPA doesn’t show that. The true cost of the Solar Panels is not shown in the deal. It’s the kind of a deal where the buyer, in this case the people of Northampton were not presented with the true cost of the items that were purchased. What exactly was purchased? How about the financing for Solar Panels that are far too expensive to buy outright meaning they are far, far too expensive to be bought through financing. Why is the financing not explained? Why is it hidden? Why isn’t it out in the open?
What’s in the agreement? That the Authority can purchase the solar panels after five or six years for $1 or the going market value which is not mentioned and which is likely to be tens of thousands of dollars.
Read the quote: ‘will provide 70 percent of the power for one of the well houses’. ONE WELL HOUSE. The Authority has six well houses and they have to operate at night when the solar panels don’t work. the People better hope the Sewage Board doesn’t buy five more stinkin’ systems.