Bill Text

Green Building Continuing Education Act

SERC’s Green Building Continuing Education Act requires that green building courses be included in mandatory courses required for architects seeking re-licensure. Because most of the features that make a building “green” must be considered in, and incorporated into, the design phase, architects have the opportunity to play a pivotal role in the recognition and promotion of sustainable design. SERC’s model bill ensures that states acknowledge the societal benefits of green building by requiring architects seeking re-licensure to take a minimum number of green building course hours. The purpose of this act is to further public and professional awareness of green building practices with the goal of encouraging its implementation.

Green Building Standards Act

The purpose of the Green Building Standards Act is to encourage the practice of green building and the use of green building materials and design techniques by requiring that all building construction funded in whole, or in part, by the state meet stringent green building standards.

SERC’s model bill requires all new state-funded construction to meet the high-efficiency standards for Platinum certification under the U.S. Green Building Council’s (USGBC) Leadership in Energy and Environmental Design (LEED). Platinum is the highest rating achievable under the USGBC LEED rating system. SERC has included this requirement in its model bill because of the incredible long-term cost savings and dramatically smaller environmental impact of Platinum-Certified LEED buildings. The most recent studies on the economic and environmental costs and benefits of green buildings suggest that initial premium investment capitol to achieve a platinum rating makes economic sense for the investor, but this bill may be adapted to require less stringent (Silver or Gold) ratings. In addition, SERC’s model bill includes an exemption from such requirements if the cost of compliance sufficiently exceeds the life-cycle savings of the building.

Green Building Tax Credit Act

SERC’s model Green Building Tax Credit Act offers a state income tax credit to builders who meet, or exceed, USGBC LEED green building standards. The amount of the credit depends on the size of the building and the level of certification awarded under the LEED rating system. The tax credit is awarded to the owner or tenant of a newly constructed or renovated building that meets the requirements and is meant to help offset the initial higher costs of incorporating green building elements.

The model bill offers two options for how to calculate the tax credit allowed. One, based on a Pennsylvania bill, requires the establishment of a credit schedule based on building size and the level of LEED certification. The other, based on Oregon state law, specifies tax credit amounts per square foot relative to the level of LEED certification. There are many ways to calculate a tax credit for green building – these examples are provided as good approaches that states can take to encourage LEED-certified green building.

Although it does not require the use of LEED standards, New York’s Green Building Tax Credit states that the rules be “informed” by the LEED rating system and is also a very good example of a green building tax incentive. New York’s law includes specific tax credits against the cost of new technology such as fuel cells and photovoltaics. SERC’s model bill avoids promoting specific technologies and, instead, aims to reward the builder for the environmental results of their design and construction choices, no matter what methods are used. If your state would prefer to use New York’s approach, please see the Natural Resources Defense Council’s information page on the New York tax credit, with links to law itself. Whether or not your state wants to use LEED standards as a measure, it is important to tailor the legislation to the particular environmental and economic needs of your state. LEED leaves plenty of room to do so, and you can see one example of a city’s modification of the LEED standards to address particular environmental concerns in their area here.

SERC’s model bill allows a taxpayer to receive the tax credit for two consecutive years and extends the length of the tax credit to five years if the taxpayer demonstrates continual compliance with USGBC LEED requirements. Taxpayers can demonstrate sustainable operation of their buildings by achieving annual certification under the LEED-EB (existing buildings) guidelines.