Legislation would give tax credits to TOD

Would provide 30% tax break

Steve Hawley, Apr 22, 10.

US Senator Robert Menendez of New Jersey has introduced legislation that would provide tax breaks to certain transit-oriented development projects, according to Streetsblog Capitol Hill.

To qualify for the 30 percent tax break, a development would have to meet several criteria. The projects would have to be within half a mile of a fixed transit station, such as a train, bus rapid transit, or ferry stop. Residential projects would have to exceed national energy efficiency standards by 25 percent and commercial projects by 50 percent. Apartment complexes would also have to provide at least five percent affordable housing.

Projects also would have to be high-density and over 150,000 square feet in urban areas. In rural areas, projects would be at least 50,000 square feet and be built on previously developed land near town centers. Construction on qualifying projects would have to begin within 36 months, and the tax credit would be awarded once construction was complete.

Reconnecting America praised the bill, saying it will help people of all income levels lower their carbon impacts and create more livable communities. The program, if approved by Congress and signed by President Obama, would resemble the Historic Tax Credit and Low Income Housing Tax Credit programs. A recent Rutgers University report said that the Historic Tax Credit program has created 1.8 million jobs and $85 billion in private investment since its inception in 1981.

The bill has been referred to the Senate Finance Committee, which includes Senator John Cornyn of Texas.

Senate Bill 3212: Green Building Tax Credit