One government initiative could not only save the commercial real estate market, but also create more than 300,000 jobs, increase property value and boost tax revenue, putting money back into federal, state, and local coffers, according to an independent analysis conducted by Architecture 2030. It's called the Better Buildings Initiative (BBI).
The president's BBI plan, unveiled early last month, leverages a commercial building-efficiency tax credit of 60 cents to $1.80 per square foot for meeting energy reductions of 20 percent to 50 percent below the standard. Architecture 2030 reports that for each $1 billion in BBI commercial building-efficiency tax credits, the program will generate $16.4 billion in new private spending and $3.6 billion in new federal tax revenue.
The analysis claims that the program will not only pay for itself, but would also reduce deficit spending by $2.6 billion. Additionally, each billion dollars in commercial real estate tax credits would:
- Create 303,551 jobs, quickly and cost effectively, including 138,494 direct jobs, 78,071 indirect jobs, and 86,985 induced jobs
- Increase after-tax cash flow and property values
- Reduce loan defaults
- Increase commercial real estate desirability and investment value
- Decrease building energy consumption, greenhouse gas emissions, and operating costs
- Generate $1.2 billion in much needed state and local government tax revenue
- Generate $4.8 billion in total tax revenue before the $1 billion tax credit is given
Edward Mazria, founder and CEO of Architecture 2030, said of the BBI plan, "Creating solid investments for commercial real estate lenders and getting commercial vacancies filled is key to our economic recovery. This is a great opportunity for Congress to get to the heart of the matter and create hundreds of thousands of jobs without adding additional burden to the U.S. deficit."
If you'd like to check out the facts and decide for yourself, take a look at The Architecture 2030 Better Buildings Initiative Fact Sheet and companion analysis.
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