According to a recent article by James Murray of Business Green, a new report backed by both the World Green Building Council and the U.S. Green Building Council estimates that the demand for green certified buildings will continue to soar, with the market anticipated to double every three years.
The report referenced in Murray’s article “Global green building sector tipped to double in just two years” was carried out by both Dodge Data & Analytics and United Technologies Corporation. The study draws on a survey of over 1,000 building professionals from 69 countries, finding that while only 18 percent of building companies have more than 60 percent of their projects independently certified as green, this statistic is anticipated to rise to 37 percent by 2018.
What is driving this market boom in the green building sector? According to Terri Williams, CEO of WorldGBC, not only is green building good for the environment, but there has become a “widespread acceptance” of the “strong business case for green building.” Indeed, the article highlights how business owners have seen “a median increase of seven percent in the value of their green buildings compared to traditional buildings,” an increase that was “consistent between new green buildings and those that are renovated green.”
Clearly, both here and abroad, green design and construction appears to be the future; a truth that is consistent among architects, engineers, construction companies, designers and builders of all shapes and sizes. It is also fortunately a trend that U.S. lawmakers have been ahead of the curve on, having already created a major energy incentive to both reward and incentivize future green design and construction. As we have discussed before in this space, the Section 179D tax deduction for energy-efficient commercial buildings has served as a valuable source of funding for companies in the design and construction industries. This incentive allows for qualifying businesses to receive an up to a $1.80 per square foot tax deduction for newly created energy-efficient buildings, or for buildings that are made more energy-efficient through qualifying retrofits or renovations.
If your company is involved in the green design or construction industries, and has done projects exceeding either ASHRAE 2001 or 2007 standards, we would highly advise that your company explore your potential eligibility for 179D.
Contact us today for more information on the Energy-Efficient Commercial Building Deduction (more commonly known as section 179D) and alliantgroup’s tax consulting services.