Project Overview
Franklin County Government developed a solar photovoltaic project at 1027 Marts Drive in Ozark, Arkansas. The project consists of a 292 kW AC solar ground mount PV system installed on county-owned property and placed in service in March 2024. Walker Blue was engaged to perform a full Investment Tax Credit (ITC) certification and eligibility analysis under Internal Revenue Code Section 48, including evaluation of all potential Inflation Reduction Act bonus adders.
Client Objectives
The objectives of Franklin County Government included confirming ITC eligibility, establishing a defensible ITC cost basis, evaluating prevailing wage and apprenticeship requirements, assessing potential bonus credit adders, and producing audit-ready documentation to support tax credit monetization.
Project Characteristics
System size: approximately 292 kW AC
Technology: ground-mounted solar photovoltaic system
Construction start: November 10, 2023
Placed in service: March 20, 2024
Total project cost: $627,062
Ownership: Franklin County Government
ITC Cost Basis Methodology
Walker Blue reviewed contractor pay applications, invoices, and engineering documentation to identify costs qualifying as energy property under IRC Section 48. All major cost categories were evaluated and determined to be ITC eligible, resulting in an eligible cost basis of approximately $627,000.
Prevailing Wage and Apprenticeship Evaluation
Because the project’s capacity is below 1 MW AC, it qualifies for the statutory automatic exemption from prevailing wage and apprenticeship requirements, allowing the project to retain eligibility for the full 30 percent base ITC rate.
Domestic Content Assessment
Domestic Content eligibility was evaluated using IRS Notice 2025-08 safe harbor guidance. The project did not meet the required 40 percent domestic content threshold and therefore did not qualify for the Domestic Content adder.
Energy Community and Low-Income Adders
Mapping and census tract analysis confirmed the project was not located in a qualifying energy community or low-income community. As a result, no additional bonus adders applied.
Final ITC Outcome
Base ITC rate: 30 percent
Bonus adders: none applicable
Estimated federal tax credit value: approximately $188,119
Key Takeaways
Sub-1 MW solar projects benefit from simplified compliance requirements. Early planning is critical for bonus credit eligibility, and thorough documentation remains essential even when bonus adders are not pursued.
Site plan drawings:
