Provides credit under corporation business tax and gross income tax for construction of buildings in accordance with certain energy and environmental performance standards.
The bill is designed to incentivize the construction of environmentally-friendly buildings in New Jersey, which is especially important given the significant resources typically consumed in traditional construction practices. By encouraging builders to adopt green practices, the bill aims to reduce waste and promote efficient use of energy, water, and materials. Furthermore, the anticipated regulations will ensure that construction projects under the guidance of the LEED criteria contribute positively to local environments and community health.
Assembly Bill A2223 establishes a tax credit for costs incurred in the construction of qualifying buildings that meet specific energy and environmental performance standards under the LEED (Leadership in Energy and Environmental Design) Rating System. The bill provides both a corporation business tax credit and a gross income tax credit for eligible buildings classified as silver, gold, or platinum based on their sustainability performance. The total amount of tax credits that can be issued under this bill is capped at $10 million, highlighting the state’s commitment to promoting green building practices within New Jersey.
While the bill aims to promote growth in green construction, it may face challenges regarding the allocation of the $10 million tax credits, particularly in how the available funds will be prioritized among applicants. The requirement for complying with specific LEED standards could also present hurdles for smaller developers who may find the costs of meeting such standards prohibitive, potentially leading to discussions about equity in access to the incentives provided by the bill. Understanding how these credits align with existing state policies will also be crucial as the bill is implemented.