Sponsored by:
Senator NILSA I. CRUZ-PEREZ
District 5 (Camden and Gloucester)
Senator JAMES BEACH
District 6 (Burlington and Camden)
SYNOPSIS
Green Building Tax Credit Act.
CURRENT VERSION OF TEXT
As introduced.
An Act providing certain tax credits for the meeting of green building standards, and supplementing Title 52 of the Revised Statutes.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. This act shall be known and may be cited as the "Green Building Tax Credit Act."
2. As used in this act:
"Allowable costs" means amounts properly chargeable to capital account other than for purchase of land or any remediation costs, which are: paid or incurred for construction or rehabilitation; commissioning costs; interest paid during the construction or rehabilitation period; legal, architectural, engineering, and other professional fees allocable to construction or rehabilitation; closing costs for construction or mortgage loans; recording taxes and filing fees incurred with respect to construction or rehabilitation; site costs, such as temporary electrical wiring, scaffolding, demolition costs, and fencing and security facilities; and costs of carpeting, partitions, walls and wall coverings, ceilings, lighting, plumbing, electrical wiring, and ventilation; provided that such costs shall not include the cost of telephone systems and computers other than electrical wiring costs and shall not include the cost of fuel cells or photovoltaic modules including installation. Allowable costs shall not exceed $280 per square foot of interior space, for both commercial and residential space, except that the Department of Community Affairs may raise the maximum allowable costs by up to 10 percent on each of up to two occasions in the seven-year period next following the effective date of this act.
"Carpet and Rug Institute Green Label Indoor Air Quality Test Program" means the testing program developed by the Carpet and Rug Institute, as recognized by the Department of Environmental Protection, to aid in the selection of carpet, adhesives, and cushion materials that minimize adverse impacts to indoor air quality.
"Energy Star" means the voluntary labeling program administered by the United States Environmental Protection Agency and the United States Department of Energy designed to identify and promote energy-efficient products, equipment, and buildings.
"Forest Stewardship Council" means the international nonprofit organization founded in 1993 to support environmentally appropriate, socially beneficial, and economically viable management of the world's forests.
Green building means a building meeting the standards prescribed and adopted pursuant to section 7 of this act.
"Impervious surface" means a surface that has been compacted or covered with a layer of material so that it is highly resistant to infiltration by water.
"Improvement" means any constructed element which becomes part of, is placed upon, or is affixed to real estate.
"LEED Green Building Rating System" means the Leadership in Energy and Environmental Design green building rating system developed by the United States Green Building Council.
"LEED Residential Green Building Rating System" means the Leadership in Energy and Environmental Design green building rating system for residential buildings, as may be developed by the United States Green Building Council.
"Old growth timber" means timber of a forest from the late successional stage of forest development, as defined by the Department of Environmental Protection.
"Site improvement" means any construction work on, or improvement in connection with, a development limited to streets, roads, parking facilities, sidewalks, drainage structures, and utilities.
"Stormwater management measures" means structural and nonstructural control of stormwater runoff and nonpoint pollution.
Tax year means the accounting or privilege period of the relevant business entity.
"Tropical hardwood" means any hardwood scientifically classified as an angiosperm which grows in a tropical moist forest, as determined by the Department of Environmental Protection.
3. a. A taxpayer shall be granted a credit for allowable costs paid or incurred by the taxpayer in connection with a green building, to be computed as provided in this section, against any tax imposed under the Corporation Business Tax Act (1945), pursuant to P.L.1945, c.162 (C.54:10A-1 et seq.), the New Jersey Gross Income Tax Act," pursuant to N.J.S.54A:1-1 et seq., the tax on sewerage and water corporations pursuant to P.L.1940, c.5 (C.54:30A-49 et seq.), the tax on marine insurance companies pursuant to R.S.54:16-1 et seq., and the general tax on insurers pursuant to P.L.1945, c.132 (C.54:18A-1 et seq.). The credit shall be an amount equal to the sum of the following, provided, however, that the amount shall not exceed the amount set forth in the credit reservation certificate obtained pursuant to section 4 of this act:
(1) 4.0 percent of allowable costs; and
(2) 0.5 percent, 1.0 percent, 1.5 percent, or 2.0 percent of allowable costs, attributable to buildings but not to other site improvements, qualifying as Certified, Silver, Gold, or Platinum status, respectively, under the LEED Green Building Rating System or the LEED Residential Green Building Rating System.
b. The Department of Community Affairs, the Department of Environmental Protection, and the Division of Taxation in the Department of the Treasury shall jointly adopt, pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), such rules and regulations as may be necessary to implement this act. These rules and regulations shall be designed to encourage the implementation of green building principles and maintain high but commercially reasonable standards for obtaining tax credits under this act. The rules and regulations shall establish a reasonable time for submission of applications and shall establish a method of allocating credit reservation certificates pursuant to section 4 of this act among eligible applicants, which shall generally be on a first-come, first-served basis.
c. On or before six years after the effective date of this act, the Commissioner of Community Affairs, in consultation with the Commissioner of Environmental Protection and the Director of the Division of Taxation, shall prepare and submit a written report regarding the number of certificates and taxpayers applying the credit provided for under this act, the amount of the credits granted, the geographical distribution of the credits granted, and any other information that the Department of Community Affairs, the Department of Environmental Protection, or the Division of Taxation may deem useful or appropriate. An initial draft of the report shall be so issued within the first four years following the effective date of this act. The report shall be submitted to the Governor and, pursuant to section 2 of P.L.1991, c.164 (C.52:14-19.1), to the Legislature.
4. a. To be eligible for a tax credit pursuant to section 3 of this act, a taxpayer shall submit an application, in writing, to the Department of Community Affairs for a credit reservation certificate. The Department of Community Affairs shall issue a credit reservation certific