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Due to this ambiguity and significant time delay, the 20% adder under <br /> category 4 isn’t discussed at length for this project because SolarEquity <br /> isn't sure whether or not the church will successfully claim it. <br /> SolarEquity is currently in discussions with the NC Clean Energy Fund to <br /> launch a pilot project for their upstart Bridge Loan Program. In short, <br /> the NC Clean Energy Fund would offer SolarEquity a low-interest loan <br /> that would cover 30-50% of the project outlay - or the amount that <br /> SolarEquity will recoup once the tax credits are returned. With this <br /> funding mechanism in place, SolarEquity would only have to raise <br /> 50-70% of the project cost. The rest of the funding would be provided <br /> by the loan that would be eventually paid off by the tax credits offered <br /> through the IRA. Securing funding from the Community Climate Action <br /> Fund would increase the likelihood of SolarEquity becoming the Clean <br /> Energy Fund’s pilot project for the bridge loan program. This type of <br /> funding mechanism would hold national significance and serve as a <br /> paragon for other Churches looking to install solar across the country. <br /> 20. Please describe any other <br /> aspect of your project that is <br /> relevant to the efficient use of <br /> grant funds. <br /> SolarEquity ’s dedication to the efficient use of grant funds is <br /> unimpeachable. SolarEquity doesn’t pay wages to its volunteers, so all <br /> granted funds will go directly towards the St. Joseph's CME Church <br /> Solar Project. SolarEquity will be assisting the Church’s leadership team <br /> in claiming the tax credits afforded through the Inflation Reduction Act. <br /> As is the case with all solar projects, St. Joseph’s will automatically be <br /> able to claim a credit worth 30% of the project’s cost. This will come <br /> back as direct pay since the Church does not pay taxes. The Church <br /> also qualifies for an additional 20% tax credit under category 4 of the <br /> Low-Income Communities Bonus Credit Program. This is because it will <br /> bestow over 50 percent of the financial benefits of the electricity <br /> produced to households in the Northside Neighborhood with incomes <br /> below 200 percent of the poverty line or below 80 percent of area <br /> median gross income. SolarEquity intends on measuring income levels <br /> for the area by looking at the percentage of people who qualify for <br /> LIEAP aid. Since the requirements for LIEAP and the tax credit bonus <br /> have similar parameters, SolarEquity can use this data to prove that the <br /> project is eligible for the bonus adder with the IRS. <br /> The application process for these tax credits is notoriously convoluted, <br /> but SolarEquity has conducted considerable research to lessen the <br /> burden on Church members. <br /> Upon successfully claiming the tax credits, the Church will send over <br /> $33,000 back to SolarEquity. At this point, SolarEquity will reinvest the <br /> money back into the Northside Neighborhood, carrying out solar <br /> projects on either residences that are heavily energy burdened or <br /> community centers in need of relief from energy costs. <br /> Page 19 of 28 <br />Docusign Envelope ID: 257985C7-FC41-4937-8E64-B610C38DBA58