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
07/02/2015

Sustainable parking leaders recognized.

07/01/2015

Design ‘scatters’ sound without affecting aerodynamics.

06/30/2015

Survey shows lack of concrete commitment to efficiency improvements.

06/29/2015

Guideline will protect building water systems.

06/26/2015

Development could mitigate urban heat island effect.

06/25/2015

New web application can identify energy savings opportunities.

06/24/2015

Report shows refrigerants could reduce GHG emissions, energy use.

06/23/2015

Sustainable design tied to strong financial performance.

06/22/2015

Human wellbeing guidelines grow throughout North America.

06/19/2015

Larger, private buildings now included in rankings.

06/18/2015

Diversion rates increase nearly 10% in 2013.

06/17/2015
Study shows lack of preparedness, suggests improvements to increase resiliency.
06/15/2015

Surveyed workers feel unsafe, doubt employer readiness for weather events. 

06/12/2015

Better Buildings Challenge improvements demonstrate energy savings.

06/11/2015

New technology provides privacy and sunlight.

06/10/2015

Program will provide best practices, green certification for landscape design.

06/09/2015

Improve recycling up to 20% with an easy switch.

06/08/2015

OSHA and Health Canada to improve hazard communications for worker safety.

06/04/2015

Lighting, building automation retrofits show highest rate of return.

06/03/2015

New OSHA guide to ensure fair treatment, safe working conditions.

Page 1 of 54
FirstPrevious[1]2345678910NextLast

Sponsored Links