Axios—Green building tax credits are back, this time as a tax-free deduction.
U.S. President Donald Trump has threatened to withdraw from the Paris climate agreement, leaving the United Kingdom in the lead as the world’s biggest green building exporter.
The green building credit is an incentive for private firms to convert green buildings into buildings that support low-carbon living.
UBS predicts Britain will save $15 billion a year through the tax credit, up from $8 billion a few years ago.
The Treasury announced last month that the U.N. will give Britain a 1 percent boost to its carbon price this year, to help offset a $12 billion cut in the U,S.
and Canada’s emissions.
The United Kingdom will receive $1 billion, up $300 million from the previous year, for helping to build renewable energy and carbon capture technology.
The Green Building Credit, which was set up in 2001 to help businesses build their green buildings, is not a tax deduction, but instead is a credit against taxes.
The U.C. Davis and U.
Chicago Law Schools Center for Law and Economics economists said the tax incentive is good news for Britain.
They argue the UBS analysis underestimates how much green building is required in Britain, and they argue that if green building costs are lower, businesses will be more likely to use them.
The government should “recognize that there is a strong case for its green-building tax credit,” said Benjamin M. Fisher, a senior fellow at the center.
