x

Green Buildings Tax Credit Program

Follow LEED to a New Tax Credit

Connecticut is offering a new incentive to build or renovate commercial buildings to meet or exceed U.S. Green Building Council’s Leadership in Environmental and Energy Design (LEED) Gold Standard. The Green Buildings Tax Credit makes it more cost-effective for builders and developers to invest in energy-efficient construction that supports our clean energy future.

Overview

Green Buildings Tax Credit Program

The Connecticut Green Buildings Tax Credit Program was created by Connecticut General Statute 12-217mm. It provides a tax incentive for building owners and developers who meet or exceed the U.S. Green Building Council’s Leadership in Environmental and Energy Design (LEED) Gold Standard for commercial construction, renovation or rehabilitation projects. The Connecticut Office of Policy and Management (OPM) and the Department of Energy and Environmental Protection (DEEP) share program administration.

For more information, please contact: 

DEEP/Bureau of Energy & Technology Policy, 10 Franklin Square, New Britain, CT 06051, ATTN: Green Building Tax Credit Program

How it Works

Steps to Take Smart Energy Action

Program Details

The statute outlines specific requirements, terminology and tax credits related to the program.

A non-refundable $10,000 application fee must be submitted with the application.

Applications for this tax credit program may be made by any type of entity (e.g., corporation, partnership, LLC, sole proprietor) for an eligible project. The tax credit itself can be claimed only by corporations subject to the Corporate Business Tax (chapter 208 of the CT General Statutes).

OPM has not established an application period for this program. As such, applications can be submitted at any time. DEEP will review applications for completed buildings or buildings for which the required Certificate of Occupancy and LEED certification can be produced within 30 days of the application date on a first-come, first-served basis.

Tax credits must be claimed with the Department of Revenue Services following standard filing requirements. Tax credits that have been assigned from the applicant to another entity will require submittal of assignment information at the time the credit is claimed.

Allowable costs will be the basis used in determining the amount of any tax credit. Sufficient documentation should be included with the application to substantiate claimed allowable costs. Applicants may be asked to provide additional documentation to support their calculations. Applicants are encouraged to submit allowable cost documentation using the CSI standard format.

For projects where the allowable costs per square foot exceed the statutory limit ($250/square foot for new construction; $150/square foot for renovation/rehabilitation), the state will reduce allowable costs to the level sufficient to be in compliance. This will be the basis for computation of the initial tax credit amount.

It is the sole discretion of the state to determine both the initial year in which the credit may be claimed and the length of time for which the credit voucher will be valid.

Additional Program Information

  • OPM reserves the right not to award any tax credits under this program if it determines it is in the best interest of the state.
  • Statutory authority places a $25 million cap on the total amount of tax credits that can be provided under this program. Within this total, there is no individual cap placed on the amount any single project could be provided.

Program Documents

For more information, please contact: 

DEEP/Bureau of Energy & Technology Policy, 10 Franklin Square, New Britain, CT 06051, ATTN: Green Building Tax Credit Program

Who is Eligible

Applications for this tax credit program may be made by any type of entity (e.g., corporation, partnership, LLC, sole proprietor) for an eligible project. The tax credit itself can be claimed only by corporations subject to the Corporate Business Tax (chapter 208 of the CT General Statutes).

Please see the statute, which outlines specific requirements, terminology and tax credits related to the program.

For more information, please contact:

DEEP/Bureau of Energy & Technology Policy, 10 Franklin Square, New Britain, CT 06051, ATTN: Green Building Tax Credit Program

Our Partners

Visit to CT Power Update page