An incentive to build green

[YankeyMCC]

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WHAT ARE these exotic animals we call "green buildings," and why should the state feed them with tax credits?


While environmental discussion often focuses on gas-guzzlers versus hybrids, it is the construction and operation of buildings that create s the single greatest environmental impact of any human activity. Buildings produce 48 percent of greenhouse gas emissions. Buildings consume one-third of all energy and two-thirds of all electricity used in the United States.
In addition, more than 25 percent of all material deposited in landfills comes from demolition and waste produced during the construction process. Twenty-five percent of potable water use is associated with building operations. If we really want to reduce pollution and promote energy conservation, we need to encourage the construction of better buildings.

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Recognizing that the unaided market does not automatically support environmentally sensitive strategies, economic incentives offer an effective way to stimulate the development of green buildings. A bill in the Massachusetts Legislature would provide tax credits to building developers, owners, and tenants, who for commercial and multi-family residential buildings invest in measures to increase energy efficiency, improve indoor air quality, and reduce overall environmental impacts. The bill also identifies tax credits to help offset the initial cost premiums associated with the integration of photovoltaic and fuel cell technologies into these projects.

The proposed tax credits would begin in 2008 and apply to commercial construction larger than 20,000 square feet and residential projects of 12 units or more. The credits would be distributed over a five-year period once the project is underway. The green building tax credit subsidies would be capped at an annual cost to the state of $25 million with a per project maximum benefit of $2 million.
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Tax credit legislation such as this has been proven to provide the incentive to overcome real and perceived barriers to sustainable development. The bill being considered here in Massachusetts has the potential to achieve a great positive impact for a relatively modest upfront expenditure.
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http://www.boston.com/news/globe/editorial_opinion/oped/articles/2007/07/13/an_incentive_to_build_green/