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Library Looks to Unique Funding Opportunity for HVAC System

The plan to renovate the E.C. Scranton Memorial Library has hit a few speed bumps in the past week or so, but if you wind the clock back to mid-August, the project was on track to hit budget, complete with an energy-efficient building design that would help hold down operating cost in future years. As the building committee deals with some other issues, committee member Woodie Weiss is working to tell local businesses about a way to donate to the library project. The twist? The donations wouldn’t actually cost businesses any money.

The plan to renovate and expand the library has gone through numerous changes over the past year. One key change is the incorporation of a ground-sourced heat pump HVAC system that will save an estimated 40 percent of the cost of heating and cooling the new building compared to a more conventional system.

The inclusion of such a system was brought forward by Weiss, the man behind numerous energy efficiency projects in town such as solar panels on town buildings and converting street lamps to LED, after he realized the initial system proposed for the new building would have put operating costs through the roof upon completion.

However, a more efficient system does come at a significant cost premium. To help cover that cost, Weiss is looking to take advantage of two things: an existing funding program, The Neighborhood Assistance Act (NAA), and the fact that businesses pay taxes.

The NAA is a federal grant program run through the State of Connecticut. According to the State of Connecticut Department of Revenue Services website, “The Connecticut Neighborhood Assistance Act (NAA) Tax Credit Program is designed to provide funding for municipal and tax-exempt organizations by providing a corporation business tax credit for businesses who make cash contributions to these entities. Businesses can receive a credit of 60 percent of their approved contribution to certain programs (or 100 percent in the case of certain energy conservation programs) approved by the Department of Revenue Services. Any tax credit that is not taken in the income year in which the contribution was made may be carried back to the two immediately preceding income years (beginning with the earlier of such years).”

In layman’s terms, Weiss said what that basically means is a donation wouldn’t cost businesses a dime and the program is basically “free money for non-profits”.

“The NAA provides funds to encourage energy saving projects like ours,” he said. “Corporations that pay the Connecticut Business Tax may choose to donate between $250 and $150,000 to an entity that has received approval from the DRS, which we have. The donating corporation will then receive a tax credit for 100 percent of its donation, which may be used against the current year’s tax due, or the two immediately preceding income years if not fully taken in the current year.”

The only catch is businesses have to move rather quickly on this because the window to apply is short.

“The application must be completed by a corporation in order to receive the tax credit and is extremely easy to fill out, but must be received by the DRS between Sept. 15, 2018 and Oct. 1, 2018,” he said.

For businesses that are interested, more information and the link to the application can be found at www.ct.gov/drs.