After just a few weeks, it is clear that the Obama administration has ambitious plans for the green-building industry. The recently passed economic stimulus package, the American Recovery and Reinvestment Act of 2009, or ARRA, contains more than $25 billion in funding for energy efficiency in federal buildings, schools and homes — a sizeable sum, though somewhat less than in earlier versions of the bill. The president has also sent strong signals that the federal government intends to play an active role in raising efficiency standards and incentivizing green building in the private sector. This "Green Rush" could present enormous economic opportunities for developers, contractors and building owners. Of course, with opportunity comes risk, including a number of legal hurdles and pitfalls that companies and industries must avoid as they jockey for position in the upcoming Green Rush.
Federal Regulation and Incentives For Green Building
Up until now, the federal government has had a relatively minor influence on the green-building industry, providing incentives mostly in the form of tax credits. The Energy Policy Act of 2005, or EPAct, allows commercial property owners and leaseholders to earn a tax deduction of up to $1.80 per square foot for buildings achieving a 50 percent energy savings target. Likewise, homeowners are eligible for a tax credit for the purchase and installation of energy-efficient windows, insulation, doors, roofs, HVAC and renewable energy systems such as solar panels.
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