LEGISLATIVE SERVICES AGENCY
OFFICE OF FISCAL AND MANAGEMENT ANALYSIS
200 W. Washington St., Suite 301
Indianapolis, IN 46204
(317) 233-0696
iga.in.gov
FISCAL IMPACT STATEMENT
LS 6241 NOTE PREPARED: Nov 27, 2023
BILL NUMBER: SB 51 BILL AMENDED:
SUBJECT: Commercial Property Assessed Capital Expenditure Program.
FIRST AUTHOR: Sen. Walker G BILL STATUS: As Introduced
FIRST SPONSOR:
FUNDS AFFECTED: GENERAL IMPACT: Local
DEDICATED
FEDERAL
Summary of Legislation: This bill authorizes counties, cities, and towns (local units) to adopt an ordinance
for a commercial property assessed capital expenditure program (C-PACE program) and enter into an
assessment contract with the owner or owners of commercial property to impose a voluntary C-PACE tax
assessment and lien on an applicant's property as a means of assisting the applicant in obtaining financing
of eligible clean energy improvements on the property. It requires certain provisions to be included in an
assessment contract.
The bill defines an "eligible improvement". It requires the local unit to obtain written consent of each
existing mortgage lien holder on the property stating that the lien holder does not object to the imposition
of the C-PACE tax assessment. The bill also specifies the procedures for imposing the assessment, collection,
enforcement, and the priority of any tax lien.
This bill prohibits the local unit from issuing bonds secured by tax revenue from any special assessment and
further specifies that a local unit shall have no financial obligation or liability for the payment of tax revenue
from a special assessment, other than to transfer the proceeds to the financing provider for the improvements.
Effective Date: July 1, 2024.
Explanation of State Expenditures:
Explanation of State Revenues:
Explanation of Local Expenditures: County Auditors and Clerk Treasurers: The bill’s provisions may
SB 51 1 result in an increase in the administrative workload for both auditors and clerk treasurers, depending on if
the C-PACE district (district) is being proposed for an unincorporated part of the county or in a municipality,
respectively. The auditors and clerk treasurers may be required to serve as the conduit of the proceeds
received from the C-PACE special assessment to the financing provider for the eligible assessment
improvements.
County Recorders: County recorders would be required to record each assessment contract between the local
unit and the commercial property owner in the district. This provision may result in an increase in the
administrative workload for county recorders but is within their routine administrative functions.
County Councils and City or Town Councils: The bill’s provisions may result in an increase in the
administrative workload for the fiscal body of the respective county or city or town. The fiscal body would
have to determine if they should adopt an ordinance that establishes a C-PACE program and what the scope
or size of the district might be.
Explanation of Local Revenues: C-PACE Program Special Assessment: The bill allows the local unit, upon
the establishment of a C-PACE program and district, to enter into an assessment contract that would impose
a voluntary special assessment on the property owner’s property as a means of assisting the owners in
obtaining financing of eligible assessment improvements on the property. The special assessment is subject
to the same calculation procedures of penalties for delinquencies on ad valorem property tax imposed by
the local unit.
C-PACE Program Administrative Fee: Local units will have the option to impose an administrative fee for
the cost of administering the program on each commercial property owner within the designated district. Fees
may not exceed the greater of one percent (1%) of the total amount of any assessment or twenty-five
thousand dollars ($25,000). Actual revenue realized from the fee will depend on the actions of the local units
and the number of property owners in the district.
State Agencies Affected:
Local Agencies Affected: Local units.
Information Sources:
Fiscal Analyst: James Johnson, 317-232-9869.
SB 51 2