1. Green Initiatives Offered in the Metropolitan Washington Region Zachary S. Fried, Esq. Apartment and Office Building Association October 22, 2008

2. Energy Efficiency Water Conservation Recycle and Reuse Benchmark How can a Building Go Green?

3. Why Go Green? Financial Incentives Grants Tax Credits Tax Deductions Sustainability

4. Federal Incentives INITIATIVEAPPLICABLE SECTORS AMOUNTSUMMARY Energy Efficient Commercial Buildings Tax Deduction Commercial$0.30 - $1.80 per sq. ft. Provides a tax deduction for energy efficient commercial buildings. Residential Energy Conservation Subsidy Exclusion (Corporate) Multi-Family Residential Amount of Subsidy Energy conservation subsidies provided by public utilities are not included in gross income. Business Energy Tax Credit Commercial30% for solar, fuel cells and small wind; 10% for geothermal and CHP Provides a 30% Income Tax Credit for solar energy property. The bill allows the ITC to be used to offset both regular and alternative minimum tax.

5. District of Columbia Incentives INITIATIVEAPPLICABLE SECTORS AMOUNTSUMMARY Renewable Energy Demonstration Project (REDP) CommercialVaries by Solicitation Provides grant funds that will assist in the installation of a renewable energy generation system. Applicants may apply for funding to implement a project that reliably produces electricity using a renewable source of fuel (i.e., photovoltaic, biomass, wind or hydropower where appropriate)

6. Virginia Incentives INITIATIVEAPPLICABLE SECTORS AMOUNTSUMMARY Arlington County - Green Building Incentive Program Commercial, Multi- Family Residential Bonus Density and/or Height The program grants bonus densities and/or heights to building projects which receive LEED certification. Local Option Property Tax Exemption for Solar Commercial, Multi- Family Residential Varies (local option) Virginia allows any county, city or town to exempt or partially exempt solar energy equipment or recycling equipment from local property taxes.

7. Maryland Incentives INITIATIVEAPPLICABLE SECTORS AMOUNTSUMMARY Income Tax Credit for Green Buildings (Corporate) Commercial, Multi- Family Varies Based on Technology Installed Provides an income tax credit to buildings that are constructed or rehabilitated to meet criteria set forth by the U.S. Green Building Council. Montgomery County - Clean Energy Rewards Program Commercial 1.5 cent per kilowatt-hour Non-residential customers will receive 1.5 cent per kWh for purchases of up to 100,000 kWh per year. Property Tax Exemption for Solar Energy Systems Commercial, Multi- Family 100% property tax exemption for solar energy property Provides a property tax exemption for solar energy property.

8. Maryland Incentives Continued INITIATIVEAPPLICABLE SECTORS AMOUNTSUMMARY Geothermal Heat Pump Grants Commercial, Multi- Family Grants are provided at a rate of $1,000 per ton of refrigeration capacity The MEA offers rebates of up to $3,000 for residential geothermal heat pump systems and $10,000 for non- residential geothermal heat pump systems. Solar Energy Grant Program CommercialThe lesser of: $3,000 or 30% of the cost for solar water heating equipment; or $2,500 per kw up to $10,000 for solar PV. Provides financial incentives to businesses that install solar water- heating systems or solar- electric (PV) systems.

9. Contact Information Further Questions? Zachary S. Fried, Esq. AOBA Consultant (o) 301.261.1460 (c) 301.509.0034 Email Questions to: aobagovtaffairs@aoba-metro.orgaobagovtaffairs@aoba-metro.org Visit our website: www.aoba-metro.org/going-green.htmlwww.aoba-metro.org/going-green.html