The Sallan Foundation Releases Results of Investigation Into New York State's Green Building Tax Credit Law

Nancy E. Anderson, Executive Director of the Sallan Foundation, takes a hard look at the New York State Green Building Tax Credit Law and issues this challenge — how to get what we pay for. http://www.sallan.org/newviews/archives/2007/03/000390.php

This forward-thinking tax credit law was supposed to transform the markets for building developers and alter the behavior of building managers and tenants by providing $25 million in tax credits from 2000 — 2004. An additional $25 million in state tax credits was authorized when the law was renewed in 2005. The greenest goals of these tax credits were aimed squarely at supporting a new generation of buildings that would use much less energy than conventional buildings.

Anderson searched the public record to find out how much green $25 million in tax credits would buy. What she discovered is that no one knows. Although the law requires that tax credit beneficiaries maintain records on their buildings' performance, there is no public record on how these buildings performed. And if, in fact, the State has this performance data, there's no record that anyone in Albany reviewed it.

In addition, although the tax credit law was renewed in 2005, Anderson discovered that it hasn't been put into effect as of March 2007.

What's going on here? Does New York actually need another tax credit program to get more green building? If so, why isn't anyone complaining about $25 million in unavailable building tax credits?

According to Anderson, "Presumably the necessary evidence exists in someone's files to determine whether tax credit recipients met the programmatic and numeric performance goals of TC-1 (the first law), but it's all been left to gather dust. This is a bad way to carry out a well-intentioned law because we are urgent need of good evidence and getter environmental policy-making since hot times and torrid real estate markets call for cool minds and steady hands".

With a new Governor in Albany, we have the perfect opportunity to meet the challenge and get what we pay for — by getting smarter and going greener.

About the Sallan Foundation
The Sallan Foundation improves the urban environment by advancing useful knowledge for greener, high performance cities.

Contact:
Nancy E. Anderson
212-785-2207
http://www.sallan.org