Solar Farm Development

The Challenge

A developer looking to build a $160 million solar farm in Missouri was facing pushback from the local community. The company needed to find possible incentives and abatements to continue progress on the project.

Our Solution

While solar farms are not common in Missouri – which means the state and local communities don’t have much experience with incentives and abatements for that type of project – the team at Springline began researching the various programs that might be available. The team decided on a Chapter 100 property and sales tax exemption (through the Missouri Department of Economic Development), which exempts the purchase of some construction materials and certain tangible personal property. An abatement plan was then established that guaranteed a tax payment for the next 35 years from the client to the county. This eliminated any ambiguity around the tax obligation and prevented the county from losing that tax revenue if the company were to ever sell the solar farm property.

Client Impact & Results

Through the arrangement, the Springline team was able to ensure the tax payment was protected and would stay with the county (instead of the state). The county got a guarantee of tax revenue for the next 35 years, and the developer was able to realize a tax break of more than $9 million over that timeframe.