Green Globes Legislation Grows in Garden State: Will Proposed Tax Credit Act Follow?

New Jersey’s Green Building Tax Credit Act of 2008 could offer up to $200 million in tax credits, but does not provide flexibility for developers to choose which green building rating system to follow in order to qualify.

The New Jersey Green Building Tax Credit Act of 2008 may soon give developers in the Garden State up to $20 million in annual tax credits that they’ll be able to apply to their state corporate, income, sewer, and water taxes. Under S1077, the bill containing the proposed legislation, the amount of credits that would be awarded for a particular project increases as the developer builds to higher levels of LEED certification, up to an additional six percent for LEED Platinum. Over the course of the seven-year program, the total amount of available credits could increase to $50 million. The bill is being sponsored by Essex County Assemblyman John McKeon (D), who hopes that it will be signed into law by July 1. However, given the state’s current financial predicament and Governor Corzine’s aggressive push to reign in finances, it’s likely that the bill will meet significant opposition in Trenton over the coming weeks.

It’s also important to note that as currently drafted S1077 does not provide any tax credits for projects that choose to follow any other green building rating system. We mention this because, late last month, New Jersey became the 12th state in the U.S. to incorporate the Green Building Initiative’s Green Globes system into legislation. Last year, New Jersey mandated that all new public construction greater than 15,000 square feet must meet LEED Silver requirements. It’s unclear exactly how Green Globes was added to last year’s legislation, but the state now allows a two Green Globe rating to satisfy the original bill, which was enacted on March 5, 2007.

Ward Hubbell, head of GBI, noted in a January 28 press release announcing the legislation that “[b]y allowing more than one rating system, the state is providing more options geared to mainstream design and building professionals and, as a result, encouraging the accelerated adoption of green building practices. Policies such as this set an example we hope others will follow with their own sustainability initiatives.” We agree with Mr. Hubbell; gbNYC has frequently called for rating system flexibility among state- and municipal-level legislative schemes. It should be instructive to follow S1077 as it’s debated in Trenton and observe whether Green Globes is eventually similarly included in any green building tax credits that are ultimately offered in the Garden State.

about gbNYC

gbNYC is a multi-disciplinary consulting and real estate services firm. In addition to representing office tenants and commercial buyers in leasing and acquisitions, we also provide innovative consulting solutions from a unique, green building perspective. We advise on green building financial incentives, comment on proposed green building marketing strategies, author white papers, treatises, and market analyses, organize seminars on the LEED process and professional accreditation, and provide advice and analysis on green building risk management and the overall state of green real estate, leasing, and construction, in New York City and beyond.

Our blog, the gbNYC+ journal of real estate, law, + sustainability, delivers consistent, original content - from a New York City perspective - on how technology, data, and sustainability are changing how we interact with our built environment. Subscribe below and receive new articles as they're published or connect with our social media presence to join our ongoing conversation about real estate and sustainability, in the Big Apple and beyond. Contact us at (201) 835-8530 or info@gbNYC.com for more information about our services and to discuss how we can assist you.

, , , , , ,

Trackbacks/Pingbacks

  1. More Green Building Legislation May be Imminent for Garden State | gbNYC Real Estate Group | Commercial Real Estate & Green Buildings in New York City - Sunday, February 22, 2015

    [...] Green Globes Legislation Grows in Garden State (gbNYC) related gbNYC+ articlesGreen Building Initiative Joins Chase for High-Performance Building StandardGreen Building Initiative Offering February Existing Buildings Webinar SeriesHoboken Sustainability Primer: From Green Buildings to Clean PowerHuntington (LI) LEED Legislation Offers Incentives for Developers to Go Green Morristown Celebrates Earth Day by Honoring First Green Globes-Rated Building in New Jerseywindow._wp_rp_callback_widget_exists ? window._wp_rp_callback_widget_exists() : false; Pin It [...]

  2. Morristown Celebrates Earth Day by Honoring First Green Globes-Certified Building in New Jersey | gbNYC Real Estate Group | Commercial Real Estate & Green Buildings in New York City - Sunday, February 22, 2015

    [...] Green Globes Legislation Grows in Garden State (gbNYC) related gbNYC+ articlesMore Green Building Legislation May be Imminent for Garden StateGreen Building Initiative Joins Chase for High-Performance Building StandardChandler Airport Commerce Center: First Green Globes-Certified Building in ArizonaGreen Building Initiative Offering February Existing Buildings Webinar SeriesGreen Globes Legislation Grows in Garden State: Will Proposed Tax Credit Act Follow? window._wp_rp_callback_widget_exists ? window._wp_rp_callback_widget_exists() : false; Pin It [...]

  3. Chandler Airport Commerce Center: First Green Globes-Certified Building in Arizona | gbNYC Real Estate Group | Commercial Real Estate & Green Buildings in New York City - Sunday, February 22, 2015

    [...] still waiting for a local project to come across our radar. As you may recall, New Jersey recently opened up its green building mandate to Green Globes (after already requiring LEED) for public projects [...]