•        
  • Smart products for smart people    .   .   .   .   .   
  • ABC's "Extreme Home Makeover" selects Evergreen    .   .   .   .   .   
  • Green building solutions that work    .   .   .   .   .   
  • Foam - Efficient − Healthy - Smart    .   .   .   .   .   
  • Energy renovations save money    .   .   .   .   .   
  • Tax incentives support green building    .   .   .   .   .   
  • Save energy − Save money − Be Smart    .   .   .   .   .   
  • Evergreen has an energy renovation program    .   .   .   .   .   
  • Reduce energy use & achieve significant savings    .   .   .   .   .   
  •                   

Tax Incentives

To reduce energy use and foreign energy dependence, a variety of Federal tax incentives have been developed. Under these policies, U.S. taxpayers are incentivized through tax credits and/or deductions to choose environmentally responsible, "green" building products.

Recent green building legislation includes:

  • Energy Policy Act of 2005,
  • Energy Independence and Security Act of 2007,
  • Emergency Economic Stablization Act of 2008 and
  • American Recovery and Reinvestment Act of 2009.

Economic Stimulus (ARRA)

On February 17, 2009 President Obama signed into law the $787 billion American Recovery and Reinvestment Act (ARRA).  ARRA represents an unprecedented investment of taxpayer money intended to jump start the U.S. Economy through job creation, education, healthcare, infrastructure improvement, energy efficiency and weatherization programs.

The White House predicts that the ARRA will create or save three to four million jobs, 90% of which will be in the private sector.  As expected, green building initiatives, energy efficiency and weatherization are a central focus of ARRA, including:

  • $150 billion in infrastructure spending focused on transportation and federal facilities;
  • Improvement of a “smart” electrical grid throughout the country;
  • Development of domestic renewable energy capabilities (i.e., wind and solar power);
  • Energy efficient housing retro-fits;  and
  • The largest weatherization program in U.S. history.

$225 Billion or 28.5% of the $787 billion total will be distributed to state and local governments, of which the Office of Economic Recovery & Investment of North Carolina projects North Carolina will receive $6.1 billion. 

How Could This Benefit You?

While the impact of the Economic Stimulus plan will be seen over time, there are a number of green building tax incentives available to taxpayers under this legislation.  These include:

  • Up to 30% deduction of the cost of home energy efficiency improvements;
  • Up to $1.80 p.s.f. deduction for energy efficient commercial construction; 
  • Incentives require performance standards against existing code requirements;  and
  • Incentives may be capped, and have to be certified using the appropriate tax form.

According to EnergyStar, a green building tax deduction lowers taxable income based on one's tax bracket while a tax credit offsets one's tax obligation dollar-for-dollar. While the applicability of these tax incentives will vary by individual and by project, and must be considered with the assistance of your own professional tax and/or legal advice, Evergreen believes these programs are worth pursuing.

Evergreen is pleased to help our clients identify the proper tax forms and supporting information, and be smart on green building tax incentives.

 

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