How does the Smart Growth Tax Credit work?
A. The program would provide a credit for a developer, against state income or corporate business taxes, equal to a specified percentage of the “allowable costs” of development (which would include the capitalized costs of construction but exclude the cost of land) for new and renovated buildings that meet all of the required criteria specified in the bill. These required criteria relate to location, proximity to transit, neighborhood design aspects, such as compactness and walkability, and “green building” features of construction. Additional incentives would be available for those who redevelop brownfields, build specially certified green buildings, or take certain other “extra credit” measures that are not required.
