U.S. Geothermal completes sale of Oregon business energy tax credit
Neal Hot Springs project site, Oregon (source: U.S. Geothermal)
Francisco Rojas
19 Nov 2013
The newly constructed Neal Hot Springs Project in Vale Oregon has received a tax credit of $10 Million.
U.S. Geothermal Inc. announced today that its wholly owned subsidiary, USG Oregon LLC, has completed the sale of its Oregon Business Energy Tax Credit (BETC).
The State of Oregon allows certain renewable energy project investments within the State of Oregon to qualify for the BETC. Our Neal Hot Springs project, recently constructed near Vale, Oregon, applied for and received formal approval from the State of Oregon for the maximum $10 million tax credit. Based on the statutes’ guidelines, the company was able to monetize (sell) the tax credit for the sum of $7.4 million, and after paying certain transaction expenses, the project received approximately $7.0 million. In cooperation with the US Department of Energy, the project loan guarantor, 50% of the amount received will be used to fund additional project reserves, while the balance will be available for distribution to the project owners.
“The sale of our Oregon Tax Credit completes one of our last, outstanding open items for the Company. Our portion of the BETC funds will provide capital to help fund our future growth activities,” said Dennis Gilles, Chief Executive Officer of U.S. Geothermal.
The NYSE MKT and the TSX do not accept responsibility for the adequacy of this release.
Source: The Wall Street Journal Website
