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.

Mitsubishi Electric Cooling & Heating’s new H2i R2-Series heat pumps provide year-round comfort, even in extreme climates. With 100% heating capacity down to 0° F outdoor ambient and simultaneous heating and cooling down to -4° F, our hyper-heating systems bring highly responsive multi-zone comfort to your projects, regardless of climate zone.

http://news.mehvac.com/hhlaunch/


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.

Mitsubishi Electric Cooling & Heating’s new H2i R2-Series heat pumps provide year-round comfort, even in extreme climates. With 100% heating capacity down to 0° F outdoor ambient and simultaneous heating and cooling down to -4° F, our hyper-heating systems bring highly responsive multi-zone comfort to your projects, regardless of climate zone.

http://news.mehvac.com/hhlaunch/


 
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Efforts to minimize climate change may be more effective than previously thought.

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03/11/2015

Program will streamline certification processes, code familiarity.

03/06/2015

Study shows buildings such as hospitals could cut energy use.

03/05/2015

Small and medium-sized buildings will soon have automation options.

03/04/2015

Form will aid lenders in assessing value of sustainable design.

03/03/2015

Expanded choices offer climate-friendly solutions.

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New technology could slash consumption up to 30%.

02/27/2015

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02/26/2015

LEED, IgCC, Standard 189.1 will work in harmony.

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Standard 189.1 seeks to expand renewable energy definition.

02/24/2015

Efficient construction techniques improve housing affordability.

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