New Mexico Becomes the First State to Incentivize LEED Zero

Building on its long history as a leader in green building policy, New Mexico updated its Sustainable Building Tax Credit program with the signing into law of NM HB 15 by Gov. Lujan Grisham on April 6. The updates not only expand the benefits of tax credits to affordable housing and to LEED Zero certifications, but they also extend the program through 2030 and increase the total tax credit cap to $7.15 million, up from the previous $5 million cap set in 2015. Since the updates were intended to raise the bar for what defines a sustainable building in New Mexico, meeting silver-level certifications such as LEED Silver are no longer incentivized.

A sustainable commercial building is one that is ready for broadband and electric vehicles and that achieves LEED for New Construction, Existing Buildings, Core and Shell, or Commercial Interiors at Platinum or Gold levels. The tax credit for achieving one of these sustainable building certifications is up to $5.25 per square foot, depending on qualified occupied square footage and certification received. Manufactured housing is also included as eligible for the Sustainable Building Tax Credit program.

The Sustainable Building Tax Credit program now includes tax credits for the installation of energy-conserving products to existing commercial and residential buildings, with double the tax credit for improvements to affordable housing or buildings occupied by low-income residents. Additionally, construction of a new sustainable commercial or residential building could receive additional tax credits by achieving LEED Zero certification for carbon, energy, waste, or water. This marks the first state incentive for LEED Zero in the United States.

This addition of an incentive for LEED Zero is an exciting first, but it certainly won’t be the last. As jurisdictions like New Mexico look to reduce greenhouse gas emissions from the private sector, as well as their own building stock, incentivizing high-performance buildings can be an effective strategy.

Source: U.S. Green Building Council

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