Connecticut Department of Energy & Environmental Protection
DEEP: Green Buildings Tax Credit Program
Green Buildings Tax Credit Program
The Green Buildings Tax Credit Program is now closed. The 2017 June Special Session, Public Act 17-2 sec. 647 eliminated the green building tax credit effective December 1, 2017. Therefore, DEEP is no longer accepting any applications.
The Connecticut Green Buildings Tax Credit Program (Program), a new corporate business tax credit program, was created by Connecticut General Statute 12-217mm. This Program provides a tax incentive for building owners and developers for eligible construction, renovation, or rehabilitation projects for commercial properties that meet or exceed the U.S. Green Building Councilís Leadership in Energy and Environmental Design (LEED) Gold Standard. Administration of the Program is being shared jointly by the Connecticut Office of Policy and Management (OPM) and the Department of Energy and Environmental Protection (DEEP).
The Statute outlines the specific requirements, terminology, and tax credits related to the Program. A non-refundable application fee of ten thousand dollars ($10,000.00) is required with submission of the application.
OPM reserves the right to not award any tax credits under this program, if in its determination it is in the best interest of the State.
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 ďfirst-come first-servedĒ basis.
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 under this program.
Tax credits must be claimed with the Department of Revenue Services (DRS) 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.
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 only be claimed by corporations subject to the Corporate Business Tax (chapter 208 of the CT General Statutes).
Allowable costs shall 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 / sq. ft. for new construction; $150 / sq. ft. for renovation/rehabilitation) the State shall 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.
Questions can be forwarded to:
DEEP/Bureau of Energy & Technology Policy 10 Franklin Square New Britain, CT 06051 ATTN: Green Building Tax Credit Program