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The partnership will build a new Energy Project Assessment District program. The program provides a property tax incentive for certain businesses. 

Companies that install approved renewable energy systems can apply. Those businesses that meet the requirement will qualify for property tax breaks and other benefits.

Energize Kentucky will also promote the EPAD program. They will support the program through community outreach and partnerships. Energize Kentucky plans to partner with property owners, contractors, and commercial real estate businesses.

This will help Kentucky’s infrastructure to become more energy efficient.

New Options for Energy-Efficient Businesses 

Currently, those property owners who take part in the program have one option for billing. They also only have one option for EPAD special assessment collection.

With this new program, Energize Kentucky will offer another option. In some cases, this second option will result in reduced fees for property owners. 

The new option increases the scope of businesses that are eligible for the EPAD program, as well. Particularly, it opens the program to larger property developments. For these developments, rates and fees can remain fixed.

Reasons to Incentivize Energy Efficiency

As Mayor Greg Fischer has noted, modern cities must prepare for the coming climate crisis. One important way to develop a sustainable way of life is through energy efficiency.

The EPAD program is a powerful tool to reach this goal. This program encourages commercial property owners to invest in renewable sources of energy.

So far, several Louisville locations have taken advantage of this opportunity. These include:

• A church
• A hotel
• A multi-unit family housing structure

A spokesperson for Energize Kentucky has signaled their excitement about the program. They have worked with many local governments throughout Kentucky since 2015.

With this new EPAD program, they are partnering with Louisville’s Office of Advanced Planning and Sustainability. 

Refinancing Options for Businesses with Loans

The new EPAD program extends other opportunities to businesses, as well. For instance, property owners who participate may qualify for retroactive loan refinancing.

If a property owner funded energy efficiency updates with a loan, they may be able to refinance. This opens the door to businesses that have already invested in renewable energy.

The refinancing option has become very popular nationwide. In this way, property owners can reduce their outstanding debt. This can help to increase certain lines of credit through their mortgage provider.

Programs like this one have seen massive success across the U.S. One reason for this is federal programs and investment. For example, the federal Investment Tax Credit is at 26% through the year 2022. It was expected to decrease.

Investments for solar power also receive benefits through these programs. EPADs offer special financing to solar energy projects. Specifically, they provide a 30-year term for those who use the ITC and other tax benefits. All these benefits are available to solar projects without a down payment. 

The Kentucky General Assembly authorized local municipalities to establish EPADs starting in 2015. Nearly 40 states have similar types of programs. 

More investments in energy efficiency means an expanded job market for contractors. Many individuals are seeking Kentucky contractor’s licenses to meet this growing need.

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