Builders, real estate developers and property owners all over the U.S. focus on sustainable building projects as the federal government has made such developments mandatory across the country. Whether it is constructing a new property or performing maintenance tasks on an existing one, renovating it or handling its regular operations, sustainable practices can greatly benefit the community and the people using the building as a whole. Sustainable development can bestow a wide range of environmental, social, and economic benefits.

The federal and state governments offer a wide range of tax benefits and incentives for real estate developers and property owners to make their buildings energy-efficient. In this blog, we are going to have a closer look at some of these policies.

Projects suitable for sustainable building tax benefits

Several types of property development projects are eligible for tax benefits and incentives, as long as they have the best practices of energy efficiency in place. Here is a look at such projects.

• Energy efficiency
• Renewable energy
• Water Stewardship
• Toxicity reduction
• Indoor environment
• Waste reduction
• Sustainable development and smart growth
• Environmentally sound building materials and specifications

Setting up new lifts and escalators, solar energy systems, wind energy systems, inverters, waste management methods, etc. are covered under sustainable development projects. The numerous environmental, social and economic advantages offered by sustainable building practices make it a good idea to invest in them. Although the initial costs for such projects can be greater than conventional building design costs, they allow property owners to save a lot in terms of running and operational costs.

Incentives and tax benefits for energy efficiency projects

The State of California and its subdivisions offer several incentive programs and tax benefits to encourage sustainable building development practices. For instance, you can get rebates on the installation of solar panels and also have fee waivers for developments that focus on the best energy efficiency standards.

There are many income tax benefits offered by the federal government for making commercial buildings energy efficient. For instance, you can get tax deductions for commercial properties that are equal to the cost of the depreciable heating, ventilation, cooling, and hot water systems; depreciable interior lights; and the depreciable building envelope property.

The state government of California excludes certain grants from the gross income for

qualified low-income owners of residential properties and small businesses. Such tax benefits enable them to handle the cost of retrofitting and new construction projects.

Getting the best tax management solutions in the U.S.

Consulting with a leading tax management and planning organization can help you get the most tax credits for your sustainable projects. To get more information about how you can get the most tax benefits and incentives for your energy efficiency project, make sure that you visit our blog or subscribe to https://www.bastacpa.com/.