1.a)A renewable energy power generating facility must first be established to facilitate a program planned under a participating jurisdiction.(municipality; i.e. city, town, county)
1.b)As long as financing for a power plant is complete and all licenses, permits, and requirements are satisfied, state/federal subsidies can be monetized to purchase equity(min.1%) into participating businesses for program.
2.a)A business that chooses to participate has agreed to allow a min 1% equity ownership of their business to be purchased by local municipal.
3.a)Funds used by municipality to purchase equity into businesses are only derived from converted bonds, debt, tax credits, and subsidies as a result of ownership in power plant.
3.b)Subsidies form federal and state government to finance renewable energy power plants, can be gifted to municipalities (public tax monies), to purchase equity into power plants.
Example: Fed. subsidy=30% of total cost(solar farm).
*municipality;30% ownership in solar farm.
North Carolina state tax credit,$500k per Mega Watt.
ex.40MW solar farm=$20mil NC state tax credit.
*municipality can claim an additional $20mil in equity.
Businesses: No property tax.
No business tax.
No income tax.
Terms: Renewable every 15yrs.-25yrs. (power purchase agreement, PPA contracts)
4.b)EMPLOYEES: No state or federal income tax.
5.Municipalities are exempt from taxes.The minimum 1% equity in renewable energy power plants and attached subsidy funds used to purchase equity in businesses, establishes jurisdiction over both state and federal law.(EPACT 2005)
This allows for municipalities to develop as they see fit.This also opens the door internationally to invest in projects oversees as well as national manufacturing, distribution, and retail of goods here at home currently band by U.S. Customs.