Funding Resources

Green Building Tax Credits

Residential and commercial buildings account for nearly one-third of total U.S. energy intake. Yet their environmental impact extends well beyond energy usage — factors such as site selection, the construction process, building materials, and air emissions all play a role.

“Green,” or “high-performance,” building takes energy efficiency to a new level. Using a comprehensive approach, green building creates environmentally sustainable, healthy, productive, and economical structures through new construction, major renovations, or minor upgrades. Practitioners use techniques such as on-site renewable energy generation, innovative wastewater technologies, and proximity to public transit to minimize occupants' environmental footprint. These techniques reduce building energy costs by 20–50% and water usage by at least 50% outdoors and 30% indoors.

The U.S. Green Building Council (USGBC) has set national standards through the Leadership in Energy and Environmental Design (LEED) rating system. LEED awards credits in six categories: sustainable siting, water efficiency, energy and atmosphere, materials and resources, indoor environmental air quality, and innovation in design. Each structure achieves a certification level — Certified, Silver, Gold, or Platinum — based on points scored across these categories.

Green building is not only good for the environment, but for the economy as well. Adopting green building policies in combination with public-private partnerships can lead to the creation of high-quality jobs in a variety of trades requiring high-level skills and training.

The increased energy efficiency of green buildings pays for itself through lower heating and electric bills, reduced water and waste, lower operations and maintenance costs, and enhanced occupant productivity and health. States from Massachusetts to Oregon have proposed legislation offering tax incentives to individuals and businesses that build green, typically on a sliding scale that increases tax benefits as the LEED certification level rises.