The maximum financing accessible for a single project is limited by two factors: (1) the property owner’s current annual municipal property tax payment, and (2) the program financing limits for residential, commercial and farmland properties.
The financing limit determined in the CEIP regulation is $50 thousand for residential projects, $1 million for commercial projects, and $300 thousand for farmland projects. The lesser of these two limits is the maximum financing amount available for a project. Municipalities may place a lower financing limit per property type in their CEIP bylaw. The annual payment for the Clean Energy Improvement tax is determined by taking the final project cost (and the program administration fees if applicable) and dividing it by the term set out in the Clean Energy Improvement (financing) Agreement. The term is determined by the effective useful life (or EUL) of the upgrade. The participant’s annual CEIP repayment cannot exceed the existing annual municipal property tax amount (that is, the amount of tax most recently imposed on the property).