Senate Democrats Pass Green Building Tax Credit

Senator Looney says environmental legislation will boost jobs, economic development in New Haven and across Connecticut

October 5, 2009 – (RealEstateRama) — A measure included in one of the budget implementer bills passed by the state legislature will help stimulate economic development in New Haven and elsewhere while also preserving the environment, says Senate Majority Leader Martin M. Looney (D-New Haven). The legislation establishes a maximum $25 million tax credit for taxpayers who build buildings that meet specific energy and environmental standards.

“This green tax credit puts Connecticut on the path to a brighter economic future where we can create jobs and new business opportunities, all while doing more to protect our environment and preserve our precious natural resources,” said Senator Looney.

According to the Office of Legislative Research, the bill entitles eligible projects to a base credit that increases with the project’s green rating and allows additional credits for mixed-use projects and those located in certain areas. Taxpayers can claim only 25 percent of the credit in any tax year, with the remainder allowed to be carried forward for up to five years. The tax credits are transferrable and assignable.

Eligible projects must have energy use of no more than 70 percent of the energy permitted by the State Building Code for new construction, or 80 percent of the energy use permitted for renovation of a building. In addition, the project must use equipment and appliances that meet Energy Star standards for such things as refrigerators, dishwashers and washing machines.

New Haven city officials plan to take advantage of this new tax credit to solicit private development of the property at 745 Chapel St., commonly known as the Shartenberg lot. Located in downtown New Haven, one block from the Town Green, the site covers 1.5 acres bounded by Chapel Street, Orange Street, and State Street.

“This is an exciting economic opportunity for downtown New Haven. That this new development will also be so environmentally friendly is just icing on the cake,” said Senator Looney

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