Sustainability and net-zero targets are becoming more prevalent throughout the real estate industry. To fund these potentially expensive retrofit projects, building owners are in search of financial tools to reduce costs. The Inflation Reduction Act passed in 2022 introduced many helpful incentives and grants; however, another option that incentivizes sustainable building practices is the Texas Property Assessed Clean Energy loan (TX-PACE). Calvetti Ferguson is proud to be a certified service provider of the TX-PACE loan to better assist clients in financing their sustainability goals.
What is TX-PACE?
PACE is a financing program approved by Texas and local governments that allows property owners to finance eligible projects with little to no upfront capital. PACE financing can be used for permanent improvements that enhance water conservation or energy efficiency of the property. PACE loans are a land-secured assessment with a typical term of 10 to 20 years. Because the loan is tied to the property, it transfers to the next owner if the property is sold.
Who qualifies for a TX-PACE loan?
PACE is a voluntary program for property owners that can be used for the following property types:
- Commercial: Office, retail, hotels, schools, medical facilities, churches, etc.
- Industrial: Factories, distribution centers, power plants, oil refineries, agricultural, etc.
- Multifamily: Properties with five or more dwelling units, such as apartment buildings and condominiums
What kind of improvements can be made with the loan?
The TX-PACE loan can be used to finance a wide variety of energy efficiency and water conservation improvements, including but not limited to:
- Building automation systems
- EV charging stations
- Generation systems
- HVAC equipment
- Lighting
- Roof and wall insulation
- Solar panels
- Toilets and faucets
- Water heating systems
- Windows and doors
How can Calvetti Ferguson help?
Calvetti Ferguson is a qualified service provider of the TX-PACE loan program and has experienced professional engineers available to perform independent third-party reviews of eligible PACE projects. In addition, our team has the experience to identify and implement federal incentives often available for PACE projects, including Section 179D and the Investment Tax Credit. Our firm has experience working with Texas companies across several industries to identify and claim these valuable financial tools. As a qualified service provider, we can assist in helping property owners make the most out of their sustainable investments.
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Calvetti Ferguson works with middle-market companies, private equity firms, and high-net-worth individuals across the country. Regardless of the complexity of the compliance, assurance, advisory, or accounting need, our team is ready to help you. Please complete the form below, and we will follow up with you shortly.