July 7, 2008 State and local governments are using a variety of incentive-based technologies to encourage green building practices. The American Institute of Architects (AIA) recently commissioned a study to examine various types of incentive programs and their effectiveness, highlighting best practices around the country.
The study found that the most attractive incentives are:
Tax incentives temporarily reduced taxes for specific levels of green measures and certification
Local example, city tax exemption, Cincinnati, Ohio
A 100 percent tax exemption for LEED certified buildings, not to exceed $500,000 over 15 years for new buildings and over 10 years for renovations, is offered by the city. If the building receives LEED Platinum certification, there is no maximum exemption.
Density / floor area ratio bonuses implement height bonuses, floor area/ration bonuses, reductions in landscaping requirements and inclusion of green roof space as landscaping/open space in return for achieving levels of green building ratings
Local example, green building incentive program, Arlington, Virginia
This incentive awards commercial projects and private developments that earn LEED certification additional density between .15 and .35 FAR and/or additional height of up to three stories (the higher the certification level, the greater the density awarded). Certification does not guarantee additional density projects are analyzed on a case-by-case basis. The Master Certificate of Occupancy is awarded when the building is certified.
Expedited permitting streamline the permitting process for building, plan and site permits on projects that achieve a certain level of sustainability
Local example, Chicago Green Permit Program
This program reduces the permitting process for developers and owners who build green to less than 30 business days and, in some cases, less than 15 days. The length is determined by the number of green building elements, the LEED certification level, and the project complexity.
For more incentives and examples, see the full report.
