Westborough authorizes tax-credit filing expected to bring at least $375,000 for Fales Elementary geothermal work

The Westborough Select Board on May 14 authorized the select board chair to sign documents allowing the town to pursue an Investment Tax Credit (ITC) payment under the Inflation Reduction Act of 2022 for geothermal components installed at Fales Elementary School.The town’s presenter said the ITC payment "will be at least $375,000" and will be received as a cash payment to the town, not as a tax reduction; because municipalities cannot use tax credits directly, Westborough will engage a tax consultant and file an application with the IRS. The presenter said the town’s school committee already voted to provide funds to support the filing and that the timing of the IRS registration is important to document costs linked to each geothermal component.The board moved and approved a motion authorizing the chair to execute documents associated with IRA tax credits for the geothermal project. Staff said they would have the chair sign a limited power of attorney and work with counsel and a consultant to develop required paperwork.