Nevada Suspends Green Building Tax Break

On May 2, the Nevada Senate passed an emergency measure (Senate Bill 567) temporarily suspending property tax breaks for private commercial projects achieving a LEED rating amid concerns over a projected $110-million state budget shortfall.

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Assembly Bill 3, which was passed into law in 2005, gives projects up to a 50%, 10-year tax break for achieving a Silver LEED certification or higher. The law, which could result in millions in lost revenue, caused a flood of a new LEED projects currently totaling over 63-million-sq-ft of building space. Yet only one building, a distribution center in Reno, has been approved for the state tax abatement. Gov. Jim Gibbons-R is seeking a legal opinion on SB 567 amid fears of lawsuits from developers. Possible solutions include a maximum annual limit on the tax abatements or a grandfather clause for LEED projects already under way.

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