EERE's Corporate PowerPoint Presentation Template

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Financing Energy Efficiency and Renewable Energy
in Your Home or Business Lisa Barnett U.S.
Department of Energy
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Financing Options

• For Homeowners
• Kansas State Assistance
• Energy Efficient Mortgages
• Federal Incentives and Programs
• For Businesses
• Federal Incentives
• For Greensburg Residents (not energy specific)
• Federal, State, and Local Assistance

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Financing Assistance for Homeowners/Homebuyers
Available through the State of Kansas
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Kansas Energy Efficiency Program(KEEP)

• Interest-free loans for energy efficiency
  improvements (income-eligible homeowners at or
  below 120 of state median income)
• Kansas Housing Resources Corporation funds half
  the loan amounts, up to 7,500 (Total loan could
  be higher as determined by lender and when
  blended is low-interest)
• Apply through Sunflower Bank (official KEEP
  lender) 888-827-5564 or www.sunflowerbank.com
• interest-free on portion of loan financed by the
  state (KHRC)

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Kansas Incentives

• Property tax exemption for renewable energy
  systems
• Renewables include wind, solar (photovoltaics),
  solar thermal electric, geothermal, biomass,
  hydropower and landfill gas
• Contact Jim Ploger, Kansas Corporation
  Commission Energy Office
• Phone [phone]
• E-Mail j.ploger_at_kcc.state.ks.us
• Website http//www.kcc.state.ks.us/energy/index.h
  tm

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Energy Efficient Mortgages
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Energy Efficient Mortgage (EEM)

• Pay for energy improvements through your
  mortgage!
• EEMs for existing or new homes
• Purchase or refinance a home that is already
  energy efficient, or purchase or refinance a home
  that will become energy efficient after
  energy-saving improvements are made.
• Apply for EEM through government-insured or
  conventional loan program
• Fannie Mae and Freddie Mac
• Federal Housing Administration (FHA)
• Veterans Affairs (VA)

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Fannie Mae and Freddie Mac (Conventional) EEMs

• Fannie Mae secondary market guidelines permit
  approved lenders to increase ratios two percent
  on the debt-to-income requirements for EEMs
• An expanded qualifying ratio helps purchasers who
  are "maxed-out" on their income ratios.
• Freddie Mac allows a lender to use the projected
  utility savings as a "compensating factor."

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Why EEMs Work

• Energy-efficient homes cost less to own than
  non-efficient homes, though they may start off
  with higher price tags.

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EEMs Increase Borrowing Power
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Federal Housing Administration (FHA) EEMs

• Lenders can add the additional cost of
  cost-effective energy efficiency improvements to
  an already approved mortgage loan.
• 4,000 or 5 of the EE upgrades (up to 8,000)
  may be financed
• Covers EE upgrades for new and existing homes and
  is now available in all 50 states
• No additional down payment is required
• Can be combined with FHA 203(h) mortgage loans
  for presidentially-declared disaster areas and
  FHA 203(k) home rehabilitation loans

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Veterans Affairs (VA) EEMs

• Available to qualified military personnel,
  reservists and veterans in all 50 states for
  energy improvements when purchasing an existing
  home.
• Up to 3,000 may be financed based solely on
  documented costs  
• Or, up to 6,000 may be financed if upgrades are
  deemed cost-effective (e.g. monthly energy
  savings exceed the increase in the monthly
  mortgage payment)

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Home Energy Rating Systems (HERS) Reports

• Recommended for EEMs
• Rating score similar to miles per gallon (mpg) on
  a car
• Recommended cost-effective energy upgrades
• Estimates of the cost, annual savings, and useful
  life of upgrades
• Improved Rating Score after installation of
  recommended upgrades
• Estimated annual total energy cost for the
  existing home before and after upgrades
• HERS reports cost 300 - 800 and can be paid for
  by seller, buyer, lender, or real estate agent,
  or sometimes can be financed as part of the
  mortgage.

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Federal Incentives for Homebuyers/Homeowners
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Federal Tax Credits for Energy Efficiency
Improvements to Existing Homes

• Created by Energy Policy Act of 2005
• 10 credit for energy efficiency purchases (500
  maximum credit no more than 200 for windows)
• Must meet or exceed criteria set by 2000
  International Energy Conservation Code
• Eligible items include
• Insulation systems that reduce heat loss/gain
• Exterior windows (including skylights)
• Exterior doors
• Metal roofs (meeting applicable Energy Star
  requirements)
• For More Information www.energy.gov/taxbreaks.htm

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Home Improvement Tax Credit Overview
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Federal Tax Credits for Energy Efficiency
Improvements to Existing Homes

• Credit for costs for residential energy/HVAC
  property expenses (included in 500 maximum
  credit for EE purchases)
• Must meet certification requirements prescribed
  by the Secretary of the Treasury
• Eligible items include
• 50 for each advanced main air circulating fan
• 150 for each qualified natural gas, propane, or
  oil furnace or hot water boiler
• 300 for each item of qualified energy efficient
  property
• For More Information www.energy.gov/taxbreaks.htm
  

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Efficient HVAC Tax Credits
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Federal Tax Credits for Renewable Energy

• Credit 30 of purchase price up to maximum
• Solar panels for electricity (2,000 maximum
  credit)
• Solar water heating system (2,000 maximum
  credit)
• Fuel cell power plant (500 maximum credit)
• For More Information www.dsireusa.org

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Other Federal Assistance Available for
Homeowners/Homebuyers
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Weatherization Assistance Program

• Administered by KHRC
• Assistance for existing homes
• Provides housing improvements that increase
  energy efficiency in eligible single or
  multi-family dwellings, including manufactured
  homes.
• Eligibility income at or below the greater of
  150 of the federal poverty guidelines or 60 of
  the state median income
• Contact Larry Bentley at [phone] or
  lbentley_at_kshousingcorp.org.

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Low Income Home Energy Assistance Program (LIHEAP)

• Provides utility assistance to eligible
  households
• Eligibility at or below 130 of federal poverty
  level
• Take applications from mid-January through last
  business day of March each year
• Contact Lewis Kimsey, Kansas Dpt. of Social and
  Rehabilitation Services, [phone] or
  lak_at_srskansas.org
• For More Information http//www.srskansas.org/ISD
  /ees/lieap.htm

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Federal Incentives for Businesses
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Tax Credit for Builders of New Energy Efficient
Homes

• 1000-2000 tax credit (depending on energy
  savings and type of home) for builders for each
  qualifying home built
• Site-built homes 2,000 credit if reduce energy
  consumption by 50 (relative to IECC)
• Manufactured homes 2,000 credit if reduce
  energy consumption by 50 and conform to Federal
  Manufactured Home Construction and Safety
  Standards
• Manufactured homes 1,000 credit if they reduce
  energy consumption by 30 and conform to Federal
  Manufactured Home Construction and Safety
  Standards

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Grants and Loan Guarantees for Agricultural
Producers and Rural Small Businesses

• Renewable Energy Systems and Energy Efficiency
  Improvements Program (Sec. 9006 of the Farm Bill)
• Grants and loan guarantees for purchasing RE
  systems and making EE improvements
• Provides grants up to 25 of eligible costs
• Loans up to 50 of eligible costs
• Website http//www.rurdev.usda.gov/rbs/farmbill

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Business Energy Tax Credit

• Corporate tax credit for qualifying energy
  sources
• 30 credit for solar (electric and thermal),
• 30 credit for solar hybrid lighting
• 30 credit for fuel cells (at least 0.5 kW)
• 10 credit for microturbines (less than 2 MW)
• 10 credit for geothermal
• Maximum Incentive 500 per 0.5 kW for fuel
  cells 200 per kW for microturbines no maximum
  specified for other technologies

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Renewable Electricity Production Tax Credit

• 0.09/ kilowatt-hour tax credit for electricity
  generated by wind, geothermal, closed-loop
  biomass
• Note owners of geothermal projects who claim the
  federal business energy tax credit may not also
  claim this production tax credit.  
• 0.01/kilowatt-hour tax credit for electricity
  from open-loop biomass, small irrigation power
  (150 kW 5MW), municipal solid waste, landfill
  gas, and hydropower

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Energy Efficient Commercial Buildings Tax
Deduction

• Offers business taxpayers a deduction of 1.80
  per square foot for commercial buildings that
  achieve a 50 reduction in annual energy cost to
  the user, compared to a base building defined by
  the industry standard ASHRAE/IESNA 90.1-2001.
• Energy costs refer only to heating, cooling,
  lighting and water heating
• Eligible commercial buildings include offices,
  retail buildings, warehouses, etc., rental
  housing of four stories or more, and
  publicly-owned buildings.
• New construction in an existing building is also
  eligible for the tax deduction
• For More Information www.dsireusa.org

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Modified Accelerated Cost-Recovery System (MACRS)

• Businesses can recover investments in certain
  property through depreciation deductions
• Solar, wind, geothermal, fuel cells,
  microturbines, and solar hybrid lighting are
  classified as five-year property
• For More Information www.dsireusa.org

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Immediate and Long-Term Housing Assistance for
Greensburg Residents (not Energy Specific)
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Immediate Assistance for Greensburg Residents

• Freddie Mac Mortgage payments reduced or
  suspended for 12 months (Contact your mortgage
  servicer or www.freddiemac.com)
• Federal Home Loan Bank of Topeka Emergency loan
  program to finance repair or reconstruction or
  residences or businesses (Contact Mark Ward
  866-571-8155) (www.fhlbtopeka.com)

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First Time Homebuyer Down Payment Assistance
Program

• Down payment and closing cost assistance through
  KHRCs First Time Homebuyer Program
• Waives 2 down payment requirement for first time
  homebuyers
• Increased subsidy amount to 20 of purchase
  price, up to 25,000
• Eligible households 80 of area median income
  (39,850 for family of four in Kiowa County)
• Contact Christine Reimler (KHRC), 785-296-4818

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New Home Construction Program

• Down payment and closing cost assistance
• Subsidy of up to 20 of purchase price, up to
  25,000
• Eligibility at or below 120 state median
  income 77,915 for family of four
• Contact Christine Reimler, KHRC 785-296-4818

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USDA Financing Assistance

• Eligibility 37,400 to 38,900 max income
  (family of two), 45,350 to 47,250
  (family of four)
• USDA 502 Guaranteed Program
• Financing to build or purchase a home through
  private lender. USDA guarantees security of
  loan.
• USDA 502 Direct Loan Program
• Financing to build, purchase or repair a home.
  Loans are made through the Rural Development
  field offices.
• USDA 504 Loan Guarantee Program
• Financing to make home repairs fixed 1
  interest rate, amortized 20 years, 20,000
  maximum outstanding loan
• NOTE USDA loans may be used in conjunction with
  KHRC assistance

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Kansas Local Government Statewide Housing Program

• Provides below market, 30-year fixed mortgage
  financing for first-time homebuyers
• Provides up-front cash of 4 of loan amount can
  be used for down payment, closing costs, and
  other prepaid items (does NOT need to be repaid)
• For More Information regarding participating
  lenders, call Sedgwick County Housing Dpt
  (316-660-7270)
• Note KHRC Homebuyer assistance can be partnered
  with this program

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Coming this FallHome Construction Seminar Series!
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Home Construction Seminar Series

• Five-part training series for builders and
  homeowners in Greensburg
• Affordable, Energy Efficient Construction
  Techniques
• Offered by the U.S. Department of Energys
  Building America program
• Each seminar ½ day tour of Greensburg
  reconstruction project and ½ day in-class
  training
• For More Information betsy_at_buildingscience.com

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Seminar Series Overview
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Websites

• www.energy.gov/taxbreaks.htm - Energy Policy Act
  of 2005 Tax Credits
• www.dsireusa.org - Database of State Incentives
  for Renewables and Efficiency
• www.eere.energy.gov/buildings - U.S. Department
  of Energys Building Technologies Program
• www.nrel.gov National Renewable Energy
  Laboratory
• www.energystar.gov Energy Star
• www.kshousingcorp.org Kansas Housing Resources
  Corporation
• www.rurdev.usda.gov/ks/ - USDA Rural Development
  Kansas