Great opportunities exist for CPA firms who can understand, accept and take advantage of the new reality of ‘green’ building trends. It is a time of unprecedented opportunity for visionary leadership. The task is to sustain what there is and to work to create needed additional client services. Using these trends and sizing up your organization’s strengths to look for new opportunities will allow you to proliferate and harness the incredible growth and momentum of the green building movement.
The Local Leaders Report, published by The American Institute of Architects (AIA), examines the current state of green building laws in American cities as of 2007. Since 2003 the number of cities with green building programs has increased greater than 400%, due to a concerted effort by local political leaders, officials, architects and others within the design/building industry, and grassroots support.
Based on research conducted by the AIA on all American cities with a population greater than 50,000 (661 communities), the report spotlights the growth and effectiveness of green building policies. Ninety-two cities have green building ordinances, or at least 14 percent of all communities, representing a population of approximately 42,374,499 Americans.
Green building has expanded at a quickened clip over the last four years. The 92 cities with programs provide a captivating data set to explore. The majority of laws have been passed post-2003, with only 17 passed before this year. These pioneering programs include:
*Arlington, VA
*Austin, TX
*Boulder, CO
*Elizabeth, NJ
*Fort Collins, CO
*Frisco, TX
*Gainesville, FL
*Los Angeles, CA
*Madison, WI
*Pleasanton, CA
*Portland, OR
*San Diego, CA
*San Francisco, CA
*San Jose, CA
*Santa Monica, CA
*Scottsdale, AZ
*Seattle, WA
The Pacific region is moving forward on green building and sustainability at a faster rate than any other region of the country. This is probably due to several issues, ranging from public support for climate change initiatives to a culture of conservation to rising energy costs. The six states that are identified as the Pacific region in this study are California, Oregon, Washington, Nevada, Hawaii, and Alaska.
Arizona has three green building programs, in Phoenix, Scottsdale, and Tucson. In addition to LEED, both Tucson and Phoenix have a particular focus on energy and water efficiency.
Green building programs have traditionally focused on government buildings first because this is by far the path of least resistance. Governments can lead by example and demonstrate the efficacy of green design to the community. As time has passed and programs have multiplied, many cities have expanded their original programs or designed new programs that incorporate commercial and residential green building into their overall plans. This expansion into the private sector is generally accompanied by incentives that can range from assistance by city officials to fast-track permitting to cash rebates offered by the municipality. Although not all private green building requirements include incentives, the majority offers inducements to “go green.” Many private-sector parts of green building programs remain voluntary; however, several cities have begun to mandate green for all buildings.
As most programs start at the government level, the 79 percent of communities that indicated that their program applies to government buildings was expected. The truly interesting finding is that 49 percent of respondents indicated that their programs apply to commercial, 39 percent single-family, and 38 percent indicated that their green building program applied to multifamily construction.
Green building federal tax deductions – are you missing out?
Before a taxpayer can claim a Federal tax deduction, the taxpayer must obtain a certification (not to be confused with LEED certification) with respect to the property. The certification must be provided by a qualified certifier and satisfy the requirements of section 179D(c)(1).
A qualified certifier must be properly licensed as a professional engineer or contractor in the jurisdiction in which the building is located, not be “related” to the taxpayer taking the deduction (as defined by the IRS), and represent to the taxpayer in writing that he or she has the requisite qualifications to provide the certification. The certifier must also use IRS-qualified computer software. Software must be on a list of products approved by the U.S. Department of Energy.
The Energy Tax Incentives Act greatly encourages commercial building energy conservation. If you think you qualify for this deduction and would like to schedule a free analysis of your property to see up front whether or not this deduction will improve your cash flow, contact SourceCorp’s Green Building Tax Deduction team today.
About SourceCorp:
Celebrating their 25th year in business, SourceCorp specializes in Green Building Tax Deductions, LIFO Accounting, R&D Tax Credit Studies, and Cost Segregation Studies. With a team of nearly 70 professionals and with offices located throughout the country, SourceCorp helps clients realize unparalleled experience, services, and trust. SourceCorp serves many of the nation’s most prominent CPA firms, Associations, and Fortune 1000 companies. For more information, please call 817.732.5494 or visit www.SourceCorpTax.com.
Green building incentives currently in place (national, state and local level)
Case Studies (Portland, San Francisco, Scottsdale, Chicago, Austin, Atlanta)
Green Building Program Quick Reference Matrix (information on the programs available in each city)
July 3, 2008 at 2:28 pm |
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