As people begin to realize the impact we make on the world around us, going green is becoming a phenomenon. So, just what is green construction?

There has been an increasing concern with environmental and pollution issues in recent years. This has not come about completely without some serious justification. All indications are that we are in a serious crisis. The green construction movement is a reaction to this crisis. Green construction is a home, building, or other structure that is built, maintained, repaired, or even demolished with thought to the environmental impact. This impact may take several forms.

One of these forms is energy efficiency. The production of electricity from the burning of fossil fuels is one of the most harmful activities to the environment in existence today. Green structures incorporate renewable energy sources that might include the use of wind, solar, low impact hydropower, or biothermal energy. The source of power is not the only concern. Another concern is the reduction of power use in lighting and appliances.

Water pollution is another concern addressed in green construction. This is especially true in the case of urban runoff. Storm water runoff is a major source of pollution in rivers and lakes. Green structures take into consideration the reduction of all toxic materials. This includes mercury, asbestos, and lead. These three substances have been linked to major health problems.

Green Building also is involved in waste. Waste is a key word. Waste can be reduced. It can be reused and recycled. The reduction of waste in construction, or renovation, and even demolition involves such things as proper disposal of materials. Landscaping is also involved. Large scale landscaping projects involved with Green Building seek to protect and preserve natural resources as much as possible.

The above are just some of the factors that are part of the green construction movement. They have in common a concern for the environment. There are a wide range of issues that are nearing the real danger point. Global warming has become more than just a liberal hobby, and a recognized scientific fact. Pollution of the sea and the waterways is endemic and increasing. Asbestos and lead have poisoned and sickened thousands.

People are beginning to wake up and realize that we live on a fragile planet and we continue to abuse it at our risk. The green construction movement is a place to stop the slide, and return to sanity. It is a grassroots movement that offers hope not only to us, but also to the generations that will follow us upon this earth.

Going green is a smart moral choice, but you have to consider the bottom line. With federal tax benefits, you can have your pie and eat it to.

The Internal Revenue Service tax code is not an easy thing to understand. The federal tax benefit though can be found in Subtitle A, Income Taxes. It is under Chapter 1, normal taxes. You must look in subchapter A, Determination of Tax Liability. Then you go to part IV, Credits against Tax, and finally to Subpart A, nonrefundable personal credits. You just have to love the IRS.

In case you do not have the tax code handy, the tax benefit is not that complex. It allows a 30 percent credit on any expenditure for a qualified photovoltaic property used on a private residence within the tax year. It also allows a 30 percent credit on any qualified fuel cell property used on a private residence. The same 30 percent credit is allowed on a solar water heater under the same conditions.

This credit does have a limit of $2000 on the photovoltaic and fuel cell credit, and $500 on the solar water heater. The code also explains how the credit is to be divided in the case of multiple occupants or change of ownership. Although the tax credit is limited and only covers a certain portion of the green construction spectrum, it is an indication of the interest of the federal government. The credits basically deal with items that reduce energy consumption or use alternate energy sources. This is a reflection of the desire to reduce the burning of fossil fuels and the continued waste of energy in the country.

The tax code is very specific about the purposes of the properties that qualify for the credit. They must relate to a building that is used as a private dwelling. The water heater must also be used to heat water for regular domestic purposes. Such luxury items as swimming pools, hot tubs, and saunas would be excluded. The use of items in the structure of the building is allowed. For examples, solar panels that constitute the roof of the structure are still covered under the credit provisions.

This tax benefit does not cover any building done after December, 31, 2007. This means this is the last year to take advantage of the tax benefit as it is currently written. In order to be extended past this date, new legislation must be passed by congress. It will be interesting to see if the tax benefit for green construction is continued. It is generally believed such benefits will not only be continued, but also expanded.

Oregon is often referred to as a green state because its bountiful rainfall. As Oregon’s green construction tax benefits reveal, the title is just as applicable to its environmental philosophy.

It is at the state and local level that green construction has been meeting much success in the area of funding and all in tax credits and reductions. Several states have emerged as leaders and supporters of the United States Green Building Council and the LEEDs Certification program. Among the leading states is Oregon. Oregon, which is one of the States that make up the Pacific Northwest region of the country, has a full range of environmental issues. It borders the ocean and has an extensive inland system of rivers and lakes. It has all of the urban issues with the City of Portland, and it is a fast growing state that has seen development encroaching on its pristine forest areas.

Oregon has become one to the leaders of the green construction movement, and one of its heroes, with a Sustainable Building Tax Credit. This credit starts by determining the value of a building based on its square footage and its LEED Certification level. Once this value is determined a tax break of up to 35 percent is given as a credit. The important thing here is the use of the LEED certification level to determine value. It is a way of saying that the higher the level, the more valuable the building. There could hardly be a better way to support the LEED program than to use it to determine tax savings.

Oregon has other tax credits that are green related. The Business Energy Tax credit is one. This credit is designed to encourage the reduction of energy use and waste, and to encourage the use of alternative energy sources. It is also a tax credit that shows Oregon’s commitment to green construction ideals. Recently, Oregon introduced a program to allow non profit organizations to benefit from this credit even though they were mostly exempt from Oregon taxes anyway.

Although Oregon is a leader among the states in support of green construction via tax breaks, other states have instituted similar credits. New Jersey is another state offering credits. The recognition of green construction and its importance by state governments has been a critical factor in the progress of the movement in the United States.

It is only with the combined efforts of all segments will the problems of our environment can be solved. Individuals must do their part by demanding green construction standards of sustainability in their own home choices. Business and industry must also contribute. It is the government sector that holds the real key. Without the support of government, and without laws that can give teeth to environmental initiatives, little real progress can be made. Oregon has become a leader with its tax benefits, and we can only hope other states follow this example.

As we mature as a species, most people realize we need to take care of our world. That being said, most people think doing so is expensive. So, what does green construction cost?

The cost of green construction is a rather complex subject. It is an easily misunderstood subject also. One reason for this is the idea of an integrated approach that considers the economic benefits of any green project in relationship to the cost. The up front costs of a project may be higher. Yet, these costs are often balanced against the long term low operating costs of the building. It is further complicated by the fact that many of the benefits of the green approach cannot be easily expressed in dollar and cents. If our personal environment is safer and cleaner, and our health is better as a result, how do we quantify this?

In one example cost study done in California, $1578 was added to the cost of a home in order to bring it to a minimal green construction level. The additional costs went into projects that made the home more energy efficient. The estimate was that at current energy costs, the savings would be $185 per year. The initial cost would be amortized over the length of an 8 percent mortgage, and this would yield an additional cost of $139 a year. So, the net result would really be a savings of $46 dollars per year. It is how one prefers to look at this example that they would answer the question of cost. One approach claims the green construction improvements cost over fifteen hundred dollars. Another approach claims that the green improvements actually save over forty dollars per year. It is all a matter of perspective.

Most experts agree that green construction cost ranges from nothing at all to a nominal cost. It is possible to go to the next level and increase costs by using exotic items in the building plan. In most cases, this is not done, and the cost of the green structure does not differ much from the cost of the traditional building. Most builders are trying to do the right thing today anyway. Even when they do not consider what they are doing as green, they still try to do the right thing. They also have some very strict codes they must follow.

It is hard to compare recent projects. Green construction planners do not normally do cost estimates on their jobs comparing traditional costs. Traditional planners do not usually do cost estimates on green construction costs for their projects. In a recent study of 33 properties in California that did compare costs, the cost of going green was about 2 percent higher. This amounted to about $3 to $5 per square foot.

Green construction might very well be the wave of the future. Many new projects take years from the initial planning to the completion of construction. It is likely that code changes, and customer demands will change over the next few years. What would be the cost of scrapping a construction project and starting over again? Green construction costs little, and sometime even saves. It is the wave of the future though, and the bigger cost might come from ignoring it.