New Solar Tax Credit Passes

Fayette County Commissioners Court unanimously approved a tax abatement for the 7V Solar Farm near Muldoon at a meeting last Thursday, Aug. 27.

Under the terms of the deal, the County granted 7V Solar Farm property tax abatements over 10 years starting at 75 percent and ending at 55 percent. The abatement percentage will decrease by five percent every two years.

The abatement applies to equipment and improvements on the land. The land used for the solar array will be reclassified from agriculture to commercial property for tax purposes, and the property owners will pay full taxes on the land, retroactive to three years. 7V Solar Farm plans to lease the land from the property owners. The terms of those leases would presumably cover the taxes on the land.

James Cook, a Vice President for Candella Renewables, the company building the project, told commissioners the 7V solar farm would employ about 200 workers during the construction phase.

Once built, he said it would take less than 10 people to operate the plant.

In its tax abatement application to the County, 7V said it plans to invest $191 million in capital at the site. Even with the abatement, the property would generate more in property taxes for the County and Flatonia ISD than it currently does, as most of the land currently has agricultural exemptions.

The Record reached out to 7V and Fayette County Chief Tax Appraiser Richard Moring last Friday to find out exactly how much in property taxes the project would generate for the County and school. They had not responded in time for this publication but look for more on this story in Friday’s paper.