Some framework is in place for green building tax deductions at both the national and the lower levels. At both the federal level and local level, tax benefits exist to help promote green buildings in Houston.\u00a0These benefits not only affect owners, but some can also apply to the designers.<\/p>\n
Federal Incentive- EPAct \u00a7179D Tax Deduction<\/strong><\/p>\n \u00a0As part of the Energy Policy Act of 2005, the EPAct \u00a7179D Tax Deduction allows energy efficient construction or retrofitting expenses to be deduced for buildings in operation after December 31, 2005 and before January 1, 2014.\u00a0 These may include lighting, HVAC, hot water systems, and building envelope. If such systems are installed and reduce the total energy and energy costs of the whole building by 50%, a maximum of $1.80 per square foot (of the area affected by an efficient system) can be deducted.<\/p>\n The beneficiary of the deduction is the company or person who pays for construction, typically the owner. However, if it is a government owned building, the designer (architect, engineer, environmental consultant, or energy service provider) can benefit from this tax deduction.\u00a0 If the Better Building Initiatives proposed by President Obama become reality, then the tax deductions will become tax credits, potentially doubling the incentive.<\/p>\n For more information, please see http:\/\/www.sourcecorptax.com\/energy\/energy_efficiency.htm<\/a><\/p>\n http:\/\/www.dsireusa.org\/incentives\/incentive.cfm?Incentive_Code=US40F&re=0&ee=1<\/a><\/p>\n Harris County Green Building Tax Abatement for LEED<\/strong><\/p>\n \u00a0An owner of a new building that has registered and is pursuing LEED Certification can receive a partial tax abatement for up to ten years after construction is complete.\u00a0 This ranges from 1-10% , depending on the certification level.\u00a0<\/p>\n