The impact of President Trump's federal tax law is being cited for the reason solar developer and leasing company PosiGen Developer LLC to lay off 78 employees and begin to close its three state facilities in Danbury, Shelton, and Wethersfield, according to a notice filed with state Department of Labor Monday.
PosiGen Developer LLC alerted the state Department of Labor and the mayors of Danbury, Shelton, and Wethersfield that it has notified all its employees their positions will be terminated. It also alerted Danbury Mayor Roberto Alves, Shelton Mayor Mark Lauretti, and Wethersfield Mayor Ken Lesser it may have to closing its facilities in those municipalities if it is not able to obtain sufficient financing to continue operations or be able to sell its remaining business during the period of Aug. 31 and Sept. 13.
The company's Connecticut offices are located at 50 Ivy Brook Road, Shelton; 98 Mill Plain Road, Suite 2C, Danbury; and 100 Great Meadow Road Suite 205, Wethersfield.
"The Company has been experiencing rapid growth recently due to certain external opportunities," the company's Aug. 25 notice stated. "The growth has placed the Company in a liquidity strain both in the short term and the long term.
"The Company was able to raise short-term financing to address its liquidity needs when it progressed towards a long-term financing solution. Ultimately, the Company's efforts to raise long term capital, including through a possible asset securitization transaction, failed."
In the so-called WARN notice, PosiGen management cited the impact of the new Trump federal tax law. "This all occurred in the shadow of the passage of a new federal tax law that canceled certain federal renewable energy tax credits as of the end of 2025," they stated. "(That) added regulatory uncertainty to the renewables industry and made it more difficult for the Company to secure financing."
The layoffs and plant closure announcements were triggered when the company's subisidary, PosiGen Backleverage LLC missed an interest payment on its credit facility in order to preserve capital to make payments to its channel partners and pay operating expenses, the WARN notice stated.
A majority of the jobs that were terminated were in the renewable energy standards (22 jobs) and inside sale representatives (8 jobs).