"Green Building Tax Credit Act."
Upon passage, S1985 is likely to influence state laws governing building standards, particularly by integrating environmental considerations into construction practices. The act will support the state’s commitment to sustainability and mitigating environmental impacts associated with construction. By establishing clear guidelines for what constitutes a 'green building', it will help create uniform expectations across the industry, thereby fostering a culture of sustainability in state infrastructure development.
Senate Bill S1985, known as the 'Green Building Tax Credit Act', aims to incentivize the construction of buildings that adhere to specified 'green building' standards. This legislation proposes tax credits to developers and owners towards the corporation business tax, gross income tax, and other specified taxes for constructing buildings that meet the established criteria. The standards will be developed by the Department of Community Affairs in consultation with the Department of Environmental Protection and will include parameters such as energy efficiency, indoor air quality, and waste management.
While the bill has been positioned as a positive step towards eco-friendly practices, some stakeholders may raise concerns regarding the implementation of the tax credit system, particularly how these credits will be allocated and monitored over the years. Opposition could arise from budgetary constraints and the potential impact on revenue from the involved taxes. Moreover, the effectiveness of the proposed standards themselves may be scrutinized, particularly if they do not adequately address the regional environmental challenges present in New Jersey.