Public buildings account for about one in every six buildings in the U.S. – think schools, post offices, universities, fire stations and courthouses. That represents an enormous opportunity for cities, states and the federal government to demonstrate green building leadership.
While many governments are doing just that, too often, upfront costs and deference to the status quo are obstacles to progress, with leaders making short-term decisions that ignore the long-term benefits of green buildings, including saving taxpayers money through lower energy bills, reducing GHG emissions, and creating more resilient and comfortable workplaces.
With the passage of the Inflation Reduction Act, that dynamic should be changing. New tax incentives, low-cost financing and grant programs under the law make a compelling case for incorporating green practices into all public building projects. Sure, we don’t have all the answers yet on how the programs will be implemented. But we will soon, and from what we do know, the economics for green public buildings may have never been better.
Among the many improvements under the new law is that many of the tax incentives encouraging green building are not only more generous, but they are also much more accessible to public and nonprofit entities through mechanisms that allow the incentives to be easily transferred or, in some cases, provided essentially as rebates through direct pay provisions.
Additionally, the U.S. Department of Energy, the EPA and other agencies are busy implementing a variety of programs that states and local governments can use for building projects, providing low-cost capital and, in some cases, outright grants to fund all or a portion of a project.
Below are some highlights that every green building practitioner and government facilities leader should know about. For an even fuller picture, check out our resource on public and nonprofit building programs under the IRA and the Infrastructure Investment and Jobs Act.
https://www.usgbc.org/articles/ira-update-new-economics-allowing-public-sector-buildings-go-green