Industry News




07/29/2010

Tax Incentive Plan to Avoid Commercial Real Estate Crisis

“The CRE Solution” is a three year plan with an energy reduction target and an annual tax deduction equivalent for achieving tiered benchmarks

 
Tax Incentive Plan to Avoid Commercial Real Estate Crisis

In response to $1.4 million in looming commercial real estate (CRE) loans coming due between now and 2014, Architecture 2030 has designed a tax-incentive program to help avoid a financial meltdown.

“The CRE Solution” is a three year plan with an energy reduction target and an annual tax deduction equivalent for achieving tiered benchmarks. For example, an energy-reduction target of 50% would denote a $6.00 tax deduction per square foot. The tax incentive would provide businesses with a financial incentive to renovate for energy efficiency, provide flexibility with different energy-reduction goal options (30%, 50%, 75%, or Zero-Net-Energy goals), and would also create an annual energy savings for the businesses, which would simultaneously increase the building’s property value.

As the report describes, a 28,000-square-foot commercial building with a 50% energy reduction target could receive approximately $250,128 in energy savings and tax deductions over three years. These savings would then help businesses to pay CRE loans, combat a 90% decrease in CRE transactions since 2007, and generate a proposed 1.3 million construction-related jobs through these renovations. Implementation requires that the existing Energy Efficient Commercial Building Tax Deduction (26 U.S.C. 179D) be increased from $1.80 to a $3.00 to $9.00 range, depending on a building’s specific energy reduction target.

The full report, “The Imminent Commercial Real Estate Crisis and The CRE Solution,” is co-authored by Edward Mazria and Kristina Kershner, CEO and President of Architecture 2030.

“Employed strategically, energy efficiency tax incentives can be multiplied significantly to reduce CRE loan defaults, stimulate CRE transactions, boost commercial building construction, and increase commercial property values,” says Kershner.

The full report is available at http://www.architecture2030.org/pdfs/theCREsolution.pdf

 


Visit our website today to learn about the design flexibility of a Morton building and the endless possibilities of partnering with our designBUILD team.


Wood construction is both cost and energy efficient. Check out Morton Buildings and our designBUILD team online today to discover all the benefits of post-frame construction.

When choosing a metal-clad building for your next construction project, consider Morton Buildings, Inc., and their designBUILD team, we’ll make your dream a reality. 

We Can Help You Reduce Energy by 30%

Our mission is to help our customers manage their buildings' energy costs, improve reliability, and enhance performance while having a positive impact on the environment.
CLICK HERE to find out how.


Visit our website today to learn about the design flexibility of a Morton building and the endless possibilities of partnering with our designBUILD team.


Wood construction is both cost and energy efficient. Check out Morton Buildings and our designBUILD team online today to discover all the benefits of post-frame construction.

When choosing a metal-clad building for your next construction project, consider Morton Buildings, Inc., and their designBUILD team, we’ll make your dream a reality. 

We Can Help You Reduce Energy by 30%

Our mission is to help our customers manage their buildings' energy costs, improve reliability, and enhance performance while having a positive impact on the environment.
CLICK HERE to find out how.


 
comments powered by Disqus
08/31/2015

Occupant improvements help recruit new talent.

08/28/2015

Temperatures reach highest point since 1880.

08/27/2015

Large improvements drive water conservation on West Coast.

08/26/2015

Data breaches becoming more common.

08/25/2015

Research shows link between extreme weather events and long power disruptions.

08/24/2015

Specifications to improve wall resiliency.

08/21/2015

New resource can help FMs create scope of custodial work.

08/20/2015

Rule created to stem Legionnaires’ disease outbreak.

08/19/2015

Portable devices encourage sedentary workers to exercise while seated.

08/18/2015

PACE program to drive building improvements.

08/17/2015

Survey shows management systems can streamline work order process.

08/14/2015

Tool will help schools improve air quality.

08/13/2015

Proposed ASHRAE rule to improve communication about energy consumption, forecasts.

08/12/2015

Installations rise as electricity costs drop to an all-time low.

08/11/2015

Linear, low-bay/high-bay LEDs spotlighted as best choices for commercial retrofits.

08/10/2015

Wind, solar set for big increases.

08/07/2015

New requirement will cut food waste.

08/06/2015

ICC, ASHRAE will streamline compliance path for IgCC and Standard 189.1.

08/05/2015

Benefits inspire positive health changes for workers.

08/04/2015

New program from the EPA will cut GHG emissions.

Page 1 of 56
FirstPrevious[1]2345678910NextLast

Sponsored Links