The reduction of greenhouse gas emissions to mitigate climate change is becoming a paramount policy concern at the local, state and federal levels. Stakeholders, including lenders, insurers, tenants, customers and employees, are coming to expect or even demand that companies operate sustainably. New regulations addressing climate change compel companies to examine their energy supplies and energy efficiency, while the current economic recession highlights cost reductions in all areas, including energy use.
In this context, green building, meaning construction and operation that minimizes environmental impact and is resource-efficient, may present attractive opportunities to your organization. Green building measures can include retrofitting or retro-commissioning your property to improve energy efficiency, as well as installing equipment to produce renewable energy on site.
Of course, there are many challenges. A common problem is securing adequate private financing. To reduce the “first costs” associated with green building measures, many government agencies and regulated utilities offer incentives. New incentive programs are being introduced monthly, and already include tax-exempt bonds, grants, rebates and loan guarantees, Renewable Energy Credits (RECs), and tax credits and deductions.
Incentive programs vary considerably by location. Goulston & Storrs closely monitors the available incentives in several U.S. regions, as well as at the federal level. Click here for a listing of green building incentives in New York, New Jersey and Connecticut. For information about federal green building incentives, please click here.
For questions regarding the information contained in this G&S Advisory, please contact your usual Goulston & Storrs attorney or:
David J. Rabinowitz
This G&S Advisory was authored by Yuanshu Deng, a member of the firm's Real Estate group.
This advisory should not be construed as legal advice or legal opinion on any specific facts or circumstances. The
contents are intended for general informational purposes only, and you are urged to consult your own lawyer concerning your situation and any specific legal questions you may have.
Pursuant to IRS Circular 230, please be advised that, this communication is not intended to be, was not written to
be and cannot be used by any taxpayer for the purpose of (i) avoiding penalties under U.S. federal tax law or (ii) promoting, marketing or recommending to another taxpayer any transaction or matter addressed herein.
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