BOISE, IDAHO–(Marketwired – Nov. 19, 2013) – U.S. Geothermal Inc. (NYSE MKT:HTM)(TSX:GTH), a leading renewable energy company focused on the development, production and sale of electricity from geothermal energy, announced today that its wholly owned subsidiary, USG Oregon LLC, has completed the sale of its Oregon Business Energy Tax Credit (BETC).
The State of Oregon allows certain renewable energy project investments within the State of Oregon to qualify for the BETC. Our Neal Hot Springs project, recently constructed near Vale, Oregon, applied for and received formal approval from the State of Oregon for the maximum $10 million tax credit. Based on the statutes’ guidelines, the company was able to monetize (sell) the tax credit for the sum of $7.4 million, and after paying certain transaction expenses, the project received approximately $7.0 million. In cooperation with the US Department of Energy, the project loan guarantor, 50% of the amount received will be used to fund additional project reserves, while the balance will be available for distribution to the project owners.
“The sale of our Oregon Tax Credit completes one of our last, outstanding open items for the Company. Our portion of the BETC funds will provide capital to help fund our future growth activities,” said Dennis Gilles, Chief Executive Officer of U.S. Geothermal.
About U.S. Geothermal Inc.:
U.S. Geothermal Inc. is a leading renewable energy company focused on the development, production and sale of electricity from geothermal energy and is operating geothermal power projects at Neal Hot Springs, Oregon, San Emidio, Nevada and Raft River, Idaho. The company is currently developing a second phase project at San Emidio Nevada, as well as El Ceibillo, an advanced stage, geothermal prospect located within a 24,710 acre (100sq km) energy rights concession area located 8.5 miles (14 km) from Guatemala City, the largest city in Central America.