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  • NJ A2669
  • Provides credit under corporation business tax and gross income tax for construction of buildings in accordance with certain energy and environmental performance standards.
Introduced
(2/8/2016)
In Committee
(2/8/2016)
Crossed OverPassedSignedDead/Failed/Vetoed
2016-2017 Regular Session
This bill establishes a corporation business tax credit and a gross income tax credit for costs incurred in the construction of an eligible building qualifying as a silver level building, a gold level building, or a platinum level building under the LEED Green Building Rating System or the LEED Residential Green Building Rating System, as appropriate. "LEED" refers to the Leadership in Energy and Environmental Design "green building" rating system developed and published by the United States Green Building Council. The bill defines "eligible building" as a building located in the State, which is: (1) a residential multi-family building, with at least four habitable stories, that contains at least 10,000 square feet of interior space; (2) one or more residential multi-family buildings with at least four habitable stories that are part of a single or phased construction project that contains, in the aggregate, at least 20,000 square feet of interior space, provided that, in any single phase of the project, at least 10,000 square feet of interior space is under construction or rehabilitation; (3) a building used for commercial or industrial purposes; or (4) any combination of buildings described in (1) through (3) above. The bill directs, within one year after the date of enactment of this bill into law, the Commissioner of Environmental Protection in consultation with the President of the Board of Public Utilities, to adopt rules and regulations to establish the amount of the tax credit available to a taxpayer pursuant to this bill. The amount of the credit would be based on the number of square feet of floor space in the eligible building, the overall size of the building, and the level of certification as a silver, gold or platinum level building under the LEED Green Building Rating System or the LEED Residential Green Building Rating System, as appropriate. These rules and regulations shall be developed based on the LEED Rating System and any rules and regulations adopted by other states for similar tax credit programs. In addition, these rules and regulations would take into account how construction of the eligible building impacts the local natural environment, uses recycled or recyclable materials, incorporates renewable and energy efficient power generation systems, uses water resources more efficiently, and produces less waste than traditional building practices. These rules and regulations would also set forth requirements for determining the continued performance of the eligible building as a silver, gold or platinum level building. The total amount of the tax credits available under the bill would be $10 million. Lastly, the bill would require the Commissioner of Environmental Protection, in consultation with the Director of the Division of Taxation, to prepare a report regarding the number of certificates and taxpayers applying the tax credits, the amount of the credits granted, the geographical distribution of the credits granted, and any other information that the commissioner or the director may deem useful or appropriate, including an evaluation of the effectiveness of the tax credit as an incentive for the construction of buildings in New Jersey meeting the highest level of performance under the LEED Rating System and any recommendations for the continuation of the tax credit. Because traditional building is one of the most resource-demanding industries in the United States, the use of "green" building practices has the potential to significantly reduce waste and dependence on finite resources. Green buildings use resources-energy, water, materials, and land more efficiently and effectively, and provide healthier environments for working, learning and living. Green buildings are more environmentally-friendly because the buildings minimize the negative environmental consequences by lessening changes to the local natural environment, using recycled or recyclable materials, incorporating renewable and energy efficient power generation systems, using water resources more efficiently, and producing less waste. Green buildings provide employees with a healthier indoor work environment by effectively controlling outdoor air ventilation systems and using alternative paints, finishes, adhesives, furniture and fabrics that do not negatively affect air quality.
Commerce and Economic Development
Introduced, Referred to Assembly Commerce and Economic Development Committee  (on 2/8/2016)
 
 
Date Chamber Action Description
2/8/2016 A Introduced, Referred to Assembly Commerce and Economic Development Committee
Date Motion Yea Nay Other
None specified