A more sustainable building is a better investment for many reasons. It will cost less to own and operate while having better resale value.
- New Mexico has a Sustainable Building Tax Credit. This unique and underused credit will return up to $13,000 in tax credits for a residential building that earns Leadership in Energy and Environmental Design (LEED) Platinum Certification. LEED certification requires designing and building to higher standards for several building attributes including Indoor Air Quality, Energy Consumption, Site usage, and Durability. It requires third party inspection and testing which provides an objective quality assurance for the owner, while reducing building operating and maintenance costs and improving a buildings re-sale value.
- There is a 26% Federal Residential Renewable Energy Tax Credit (in 2020) that will help pay for solar thermal or solar electric systems and may include the heating system. These systems can be included in the buildings long term financing which is low now and has great tax advantages.
- There is an exemption to the Gross Receipts Tax for solar investments.
These tax breaks are money the government provides for you to improve the environment and promote energy independence. They also reduce a buildings operating cost and improve your equity value. A good illustration of this can be made with energy costs. If a conventional building has current annual energy costs of $1,800 a year and energy costs continue to increase 5% annually, by the end of a 20 year mortgage that annual cost will have increased to over $5,000 a year and will have required over $68,000 in energy costs. An important point is that these costs are in after tax dollars and represents money down the drain and a reduced equity position.
In contrast, the investment for energy efficiency can be financed with the tax sheltered mortgage and government subsidies, which results in am improved equity position that will improve with building appreciation and the increase of energy costs.
Additionally, in our experience, our sustainable homes have re-sold very quickly, even during economic downturns.
Making a positive contribution to the global and local environment with sustainability should be seen as a civic duty. It is important to ourselves and to future generations, and there is no more important place to do that then in the homes we build or modify. A commitment to sustainable building may be the most important decision we can make, and will leave an enduring testimony for the owners.
Sustainability requires making good decisions about many aspects of our built environment. These decisions involve indoor air quality, lighting, comfort, and acoustics. Sustainable buildings have proved to have higher rental values, increased occupancy rates, and improved occupant productivity.
A sustainable building should incorporate timeless superior aesthetics. How can it be enduring if it is unpleasant to look at or live in?
You can contact Sun & Earth Construction at (575) 521-3537