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New York Green Building Initiative

As is occurring in many states, New York is trying to promote Green Building practices. The state is doing it by offering tax credits as financial incentives. New York Green Building Initiative The concept of green building isn't particularly old and has arisen as a result of a better understanding of the impact of buildings on people and the environment. Ideally, green buildings are designed to use non-polluting energy, recyclable resources and systems that avoid health impacting elements. These buildings are extremely environmentally friendly, provide healthier environments for workers and decrease the heat and pollutant situations found in tightly packed structure and population areas such as New York City.

While green building is a nice idea, our country is based on capitalist methods. If green building isn't cost efficient, no developer is going to pursue it because doing so will give their competition a price advantage. This is where the New York Green Building Initiative comes in.

The Initiative addresses the cost impact of green building by creating financial incentives to promote the process. By going green, developers are given breaks through tax credits. The state is one of the first in the nation to provide such an incentive system, which is a major incentive. The advantage of tax credits over other incentives is they are incredibly useful in reducing tax liability. Unlike a tax deduction which comes off of gross revenues, tax credits are used to reduce the actual amount of tax owed.

For instance, if is a developer owes $5 million in taxes and gets a $2 million dollar tax credit, it has to pay $3 million in taxes. The New York Green Building Initiative offers developers tax credits of up to $2 million dollars for using green building techniques when building structures. The program is in place until 2014. The Initiative is run by the New York State Department of Environmental Conservation, which can provide you with more information on the program and the application process.

The New York Green Building Initiative represents another step in the recognition of the impact our society has on the environment. By promoting better building practices with tax credits, New York is the model for promoting green building. .

By: Rick Chapo



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