Local Issues
Green Building Incentives Still Not Implemented
August 20, 2023
The Inflation Reduction Act passed Aug. 16, 2022, and which multiplied benefits for developers and property owners incorporating sustainable elements into their buildings is stalled in the federal rulemaking process. The intent of the act was to reduce carbon emissions by 40% by 2030 and increase sustainable energy production and manufacturing.
It is believed that many of those in real estate who would have made use of these provisions are waiting for rulemaking to be completed before beginning projects. The current real estate economy has further slowed the process.
According to a recent Biznow article, one of the Act’s key provision for real estate includes an increase in a tax deduction for the construction of energy-efficient commercial and multifamily buildings to as much as $5.36 per SF. The increase to a deduction originally codified in 2006 was seen as an opportunity for developers to offset the growing costs of building, especially with green elements.