It
is not uncommon for energy improvement projects to be partially
capitalized with grant funds, or for project costs to be
partially subsidized with monies received from local utility
rebates.
Regardless of the timing of receipt of these financial contributions;
before a project starts, or after equipment has been installed
and made operational, and energy performance benchmarks have
been met, these contributions reduce the costs borne by a
project’s resources, and have a positive affect on
a project’s economics – contributing to a shortened
payback period and an enhanced return on investment.
To
the extent a project’s primary funding source is a
tax-exempt lease, the application of a portion or all of the
monies gained through these financial contributions to lease
payment obligations would not typically jeopardize a lease’s
tax-exempt status so long as the municipal organization remains
the primary user of the assets being financed.
|
