For a period of 2-3 years PremierWest Bank was the “Pass-Through-Partner”; the purchaser of the tax credit. In mid 2011 PremierWest Bank informed the community center they would no longer participate in the program.
Since the notice from PremierWest letters have been sent to 39 local CPAs, 206 local businesses and businesses headquartered out of state, but doing business in Oregon. “We also made contact with 19 Oregon banks in our attempt to find a new Pass-Through-Partne,” said Gary Endicott, who has been overseeing the project. “To date we have had some conversations with some companies but so far no takers for the tax credit.” said Endicott. “We continue to work the program in our effort to recover that loss of income.”
Endicott said because of the loss of the partner, URCC has lost $42,000 in income that has caused severe problems in the transportation operation. He said since this is tax season, he and the center remain hopeful a reader or readers would discover a personal opportunity to utilize this tax credit. Individuals as well as businesses can take advantage of this tax credit.
The Business Energy Tax Credit Program
The program provides an opportunity for Oregon businesses or individuals to become a “Pass-Through-Partner” and invest in energy conservation programs while offsetting their Oregon tax liabilities.
Through the Oregon Department of Energy, entities such as local governments and non profit organizations that don’t have existing tax liabilities and have a certified conservation project can “pass through” their energy tax credits to a business that does carry an Oregon tax liability.
The project owner locates a pass through partner and then submits an application to the Oregon Department of Energy. Upon approval, the pass-through partner makes a lump sum payment to the project owner. The partner(s) then recoup their investment by claiming the tax credit against their own state tax liability.
The current pass through payment rate for projects $20,000 or greater is 25.5 percent of eligible project cost in exchange for 35 percent of the certified project cost in the form of tax credits. Because project owners can use multiple “Pass-Through-Partners” to divide the credits, “Pass-Through-Partners” can invest in smaller amounts of the project towards available credits.
Those tax credits can be taken by multiple partners and are then spread over the course of five years through the following: 10% for the first and second years and five percent for each of the remaining three years.
Because the Upper Rogue Community Center’s senior and disabled transportation program, is considered a form of mass transit which in theory reduces the amount of carbon emission released in the atmosphere have been qualified, through the Oregon Department of Energy, as a BETC conservation project.
What are the benefits of being a pass-through partner with the Upper Rogue Community Center?
• Be able to offset your Oregon tax liability by 72 cents on the dollar.
•The ability to spread your existing tax liability over the course of five years.
•The opportunity to enhance your image as a “green business” supporter
•Being acknowledged as a community supporter of URCC’s Senior and Disabled Transportation program.
For more information, contact Gary Endicott at 541-878-2870.