Southland Industries Secures Investment Tax Credit (ITC) for the City of Chico

Union City, CA – Southland Industries is proud to announce that the City of Chico has received the first of a series of payments from the Internal Revenue Service (IRS) through the U.S. Department of Energy's Elective Pay program as a result of energy projects completed by Southland for the City. This initiative enables tax-exempt entities to receive direct payments equivalent to the full value of tax credits for qualifying clean energy projects and investments.

The documentation and tax filing work required to receive the payment was completed by Southland on behalf of the City as a part of a broader series of energy projects.  As one of the first organizations to successfully secure funds through this program, Southland is helping the City of Chico maximize available incentives for energy infrastructure improvements. "Southland is on the cutting edge of this program, and few entities have actually received payments so far," Jeff Schaller, Business Acquisition Manager, said. "This milestone demonstrates the company's ability to navigate complex energy funding opportunities to benefit its clients."

Available through Elective Pay, the Investment Tax Credit (ITC) for Energy Property supports capital investments in renewable energy solutions, such as solar power and combined heat and power (CHP) systems. The funds Southland is facilitating for the City of Chico will support various projects, including a solar photovoltaic (PV) system at the Municipal Service Center. Additionally, there are multiple projects at the wastewater treatment plant, including the repowering of an existing solar PV system, installation of a new solar PV system, and the implementation of a biogas cogeneration system to enhance energy efficiency and reliability.

"Our partnership with Southland has been instrumental in advancing our energy efficiency initiatives," Erik Gustafson, Director of Public Works O&M for the City of Chico, said. "These projects not only enhance our sustainability efforts but also provide long-term cost savings. I encourage other agencies to take advantage of similar opportunities."

By leveraging government funding options like the ITC Elective Pay program, Southland continues to help municipalities and public agencies achieve their energy and sustainability goals.