Green Buildings Tax Credit Proposed for New York

On April 9, New York State Governor George Pataki proposed legislation offering income tax credits for the construction or renovation of green buildings ranging from 5% to 8% of the cost of construction or renovation, with additional incentives for the use of photovoltaics and fuel cells. This legislation, now in the State Senate, is the governor’s version of bill that has been lurking in the Assembly for over a year. Barry Dimson of EcoSmart Healthy Properties in New York City initiated the idea of a tax credit for green buildings several years ago. The idea has since been championed by the Real Estate Board of New York, the Natural Resources Defense Council (NRDC), and the Environmental Business Association of New York State, Inc. Now that it has the Governor’s endorsement, “the bill definitely should pass this year,” says NRDC’s Ashok Gupta.

To qualify for the tax credit, buildings must be at least 20,000 ft2 (1,850 m2) in size, and meet a broad range of criteria concerning energy use, water conservation measures, landscaping, indoor air quality, and materials. The New York constitution prevents the citation of third-party standards in legislation, so the specific requirements are, in most cases, left to various state agencies to flesh out.