A companion bill is expected to be introduced in the House in the coming weeks, according to Duane Desiderio, VP and counsel with Real Estate Roundtable.
"If this were to pass, it would be a tremendous development for commercial real estate," he tells GlobeSt.com. "It would spur and encourage energy efficient retrofits across all asset classes." Jobs would be created in the short-term because of the program and, eventually, utility costs would lower for building owners, he says.
Styled after the auto industry's 'Cash for Clunkers' program, the bill would provide two means of financial incentives. Like 'Cash for Clunkers,' it is a rebate program that would cover a cost of the equipment or materials. Building owners would cover the rest.
The second element to the program, though, would help underwrite the building owner's contribution: there will be funding available from the Department of Energy that states will be able to access to make low-interest loans, Desiderio says. "Rebates will vary from specific material and services by in general the program would cover one-quarter to one-third of the costs."
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
