Companies That Go ‘Green' Deserve Tax Breaks, Carrion Says

The president of the Bronx, Adolfo Carrion Jr., is proposing sales tax exemptions and tax credits for manufacturers that use "green" materials and invest in projects that are environmentally friendly.

Citing the higher cost of energy-efficient construction materials, Mr. Carrion said tax incentives might be needed, at least in the short term, to encourage "green" development. His recommendations are included in a 15-page report, titled "It's Not Easy Being Green," that his office released yesterday.

For the borough president, a Democrat, the proposals signal an early foray into citywide policy ahead of an expected run for mayor in 2009. By supporting projects such as a new Yankee Stadium and the Bronx Terminal Market, Mr. Carrion has sought to position himself as pro-development, a stance that has drawn praise from Mayor Bloomberg, with whom he has appeared several times in recent months.

The tax credits and exemptions could be a way to meld "pro-growth and pro-environment policies," according to the report. Under the proposals, developers purchasing "green" materials — such as engineered woods, paints, carpets, and furniture — would be exempt from sales taxes, and green manufacturing businesses within the city's empire zones would be eligible for credits of up to 29%. Mr. Carrion is calling for a study to examine possible legislation, as well as city programs that enhance education and outreach about "green building" for manufacturers.

The borough president cited increases in environmentally friendly building in the Bronx, including a new green roof he unveiled on the Bronx County Courthouse last month, the first for a city-owned building.

Still, he said incentives are needed because the industry's conversion to environmentally friendly materials is proceeding too slowly. "They are not doing it enough," he said in an interview. "It's like twisting arms, because it hikes up the cost per square foot."

While energy-efficient materials carry a higher cost upfront, they are said to provide savings over the long term. A green roof, for example, costs twice as much to build, but it can result in a 30% reduction in energy use for the top floor, absorb storm water, and keep the entire building cooler, according to the report.

Mr. Carrion's proposals drew praise, but some officials questioned whether tax incentives were necessary.

"Fortunately, green building is expanding rapidly throughout the city without incentives because of the longterm economic payment," the chairman of the City Council's Environmental Protection Committee, James Gennaro, said. He added: "I'm certainly open to taking a look at financial incentives."

Mr. Gennaro sponsored a $150,000 council initiative in this year's budget to aid manufacturers in green building.

Officials with the city's Economic Development Corporation declined comment on Mr. Carrion's proposals, but they said the city already had more green projects in the pipeline than any other major city.

Green building has been getting increased attention at City Hall. A law passed last year that will take effect January 1 will require projects that receive more than $2 million in city funding to incorporate green materials, and developments getting between $12 million and $30 million must be designed to reduce energy at least 20%. The mayor also announced in September the creation of the Office of Long-Term Planning and Sustainability to advance environmental strategies.