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  • Energy Efficiency Policy
  • Jun 20, 2017

    Clean Tax Cuts for Commercial Real Estate

    Many new ideas may be considered in tax reform discussions. One idea is clean tax cuts—the application of supply-side tax-rate cuts for clean investments that reduce pollutant emissions. Lowe…

    Many new ideas may be considered in tax reform discussions. One idea is clean tax cuts—the application of supply-side tax-rate cuts for clean investments that reduce pollutant emissions. Lower tax rates for income from clean investments (where clean is specifically defined) will  encourage such investments and could leverage large amounts of private capital. Clean tax cuts may be particularly appealing in markets where investment returns are passed on to individuals and included on individual tax returns. One such market is commercial real estate, where individuals often invest in real estate investment trusts (REITs), limited liability corporations (LLCs), and limited liability partnerships (LLPs). This paper provides background information on commercial real estate investments and outlines two proposals for clean tax cuts in this area.

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