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Summer is here! Time to PACE your energy use

June 22, 2013

Summer officially arrived on Friday. But the longest day of the year is far from the hottest. If 2013 is anything like last year, we'll all be cursing the heat during July

So now is the time to think about tuning up your air conditioning system.

Anigif_enhanced by SenorGIF-dot-com via BuzzFeed-dot-com reason 46
These pups probably would be cooler inside under the A/C instead of atop the condenser.
As a general rule, your cooling system works better when you
keep the outside air conditioning unit clear of everything, including pets!

If you need a new residential cooling system, look into the possibility that you can help cover some of the cost with the $500 lifetime maximum energy-efficient home improvement tax credit. It's back on the tax books through 2013.

Some businesses also might qualify for tax assistance in making commercial energy upgrades thanks to Property Assessed Clean Energy financing.

PACE-ing business energy use: Known as PACE, this loan program allows business owners to borrow the money for conservation or clean energy
upgrades and pay it back through a
property tax surcharge.

Qualified applicants can receive 100 percent financing and the property tax payback term can be as long as 20 years.

PACE is a local government/community initiative designed to encourage property owners to convert to more energy efficient systems. Buildings use nearly half of the energy we consume in
the United States, says PACENow, a nonprofit advocacy group that tracks the program, and PACE efforts can help reduce the country's dependence on fossil fuels.

In addition to eliminating upfront
costs and providing low-cost long-term financing, PACENow says the program also makes it easy for
building owners to transfer repayment obligations to a new owner when they sell.

Those advantages, says the group, are encouraging more states to enact laws allowing PACE options. Currently, 30 states and the District of Columbia have passed
laws allowing the program. PACENow estimates that the number of projects
could easily double by the end of next year.

Today's New York Times story Tax Programs to Finance Clean Energy Catch On looks at some of the PACE success stories.

Homeowners aren't on PACE: But, as the article notes, the group for which PACE was originally intended — homeowners — is still largely left out.

The Federal Housing Finance Agency (FHFA) along with Fannie Mae and Freddie Mac objected to the senior lien status that PACE financing shares with other property taxes and assessments and took steps to stop residential PACE, according to PACENow.

These agencies' actions, says the advocacy group, almost entirely stalled the development of residential PACE programs and put communities with existing programs at risk.

Expanded residential energy tax credits: Homeowners can still claim generous tax credits through 2016 for retrofitting their current residences or building new homes with solar energy systems, small wind turbines and geothermal heat pumps.

For these upgrades, the homeowner could get a tax credit — a dollar-for-dollar tax bill reduction — on up to 30 percent of the alternative energy system's cost, including installation. There is no limit on the amount that can be considered for the credit.

PACE advocates, however, are still working to open the program to more residential property owners.

The group's website provides a link where supporters can send an email to their Representative and Senators, as well as FHFA's Acting Director Edward J. DeMarco and President Obama urging them take action to make residential PACE options available.

But for now, if you're a business owner and PACE is available in your area, check it out.

And if you're a homeowner, look into the existing federal, state and local tax breaks and programs — the Database of State Incentives for Renewables and Efficiency, or DSIRE, has close-to-home energy-saving assistance information — that could help you keep your house cooler and your bank account intact this summer.

You also might find these items of interest:

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The More Tax Posts tab at the top of this page will take you to, well, more tax posts. You also can search below for a tax topic. 

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TO WRAP UP 2026

It’s over! With October’s extended filing deadline behind us, it is now time to focus on year-end moves to reduce your 2026 tax bill. 

You’ll find ways to do just that on the Tax Tips page (see the More Tax Posts drop-down menu at the top of the blog), as well as the separate tax tip pages for each month, notably October through December. If you’re on the Tax Tips page, you’ll find a monthly list at the end of this column. If you’re on another blog page, you can head straight to the October tips; at the bottom of that tips page you’ll find links to all the other 11 months’ collections of tax advice.

Not to spoil what you’ll find in that tax advice, but it does cover such things as tax deductions for charitable donations, investment moves that could reduce tax due, and ways to max out your tax-favored retirement savings. 

Finally, as the year winds down, things get hectic. There are lots of other things to occupy our time, like the much more fun upcoming holidays. But don’t lose sight of taxes, since timing is key. To be of use, most tax moves must be made by the end of the tax year. That’s Thursday, Dec. 31, which also is the last business day of the year. 

So that you don’t miss that final tax year deadline, also keep an eye on the countdown clock below. It will keep you on top of just how much time is left to make important, tax-saving moves. (Note: I’m in the Central Time Zone, so adjust accordingly for where you live.)

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