State denies XsunX request

Company must reapply for smaller production plan

By Shannon Wells

The Gresham Outlook, Feb 27, 2009, Updated Oct 30, 2009 (14 Reader comments)

The state Department of Economic and Community Development has denied California-based solar company XsunX’s application for Business Energy Tax Credits, prompting company officials to submit a new application for a scaled-down Wood Village production facility.

The company awaited approval for months before launching production in a building it leases from the Merix Corp., which moved out of Wood Village last year.

The state was reviewing the company’s financial viability and other criteria as part of a required pre-certification process before it could issue tax credits. Oregon offers a tax credit of up to 50 percent or $20 million, whichever is less, through a five-year period for qualified solar and other renewable energy projects.

Lou Torres, state Department of Energy spokesman, said a review process on behalf of the Economic and Community Development Department found the company, which up to now has been in the research and development phase, did not meet standards for credits established by a legislative bill passed in 2008.

“The department conducted due diligence and found the company failed to show it met the requirements of House Bill 3619,” he said. “It recommended we not approve” the credits, “and we concurred with the findings” based on financial viability and prospects for long-term success.

Because of confidentiality agreements, Torres said he was unable to specify why XsunX failed to qualify for the credits, noting that the company is the first to be turned down since the stricter guidelines were established. He emphasized, however, that the company is free to move forward without the tax credits.

“This has nothing to do with (the company) wants to open for business.”

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