What is LEED Certification?

Introduction to LEED Certification

Leadership in Energy and Environmental Design (LEED) certification is the most widely used green building rating system in the world. Available for virtually all building, community, and home project types, LEED provides a framework for healthy, efficient, carbon and cost-saving green buildings. Its importance cannot be overstated; it's not just an eco-friendly badge of honor but a comprehensive approach to sustainability that touches upon every aspect of construction and building operation, promoting sustainable building and development practices that increase profitability while reducing the negative environmental impacts.

Levels of LEED Certification

LEED, or Leadership in Energy and Environmental Design, is a recognition that signals a building or community has implemented strategies aimed at achieving high performance in key areas of human and environmental health. The certification is awarded at four progressive levels, reflecting the extent to which sustainability goals have been met. These levels are:

• Certified: This is the basic level of certification and indicates that a project meets all LEED prerequisites and has earned 40-49 points on the LEED scale.
• Silver: A step above Certified, the Silver level requires a project to accumulate between 50-59 points, demonstrating an increased commitment to environmental stewardship and human health.
• Gold: Achieving Gold certification means a project has attained 60-79 points, showcasing leadership in sustainable design and making significant strides in energy efficiency and CO2 emissions reduction.
• Platinum: This is the highest level of LEED certification and is awarded to projects that achieve 80 points or more. Buildings with Platinum status are models of sustainability, offering unparalleled health, sustainability, and energy savings benefits.

The criteria for earning points towards LEED certification are organized into several categories, each focusing on different aspects of building design, construction, operation, and maintenance. These categories include:

• Sustainable Sites: Points are awarded for strategies that minimize the impact on ecosystems and water resources.
• Water Efficiency: This category rewards reductions in water usage and strives for sustainable management of water resources, both inside and outside the building.
• Energy & Atmosphere: Points are given for optimizing energy efficiency, particularly through the use of renewable energy sources and other innovations that reduce greenhouse gas emissions.
• Materials & Resources: This focuses on using sustainable building materials and reducing waste throughout the building's lifecycle.
• Indoor Environmental Quality: Enhancing indoor air quality and providing access to natural light and views are important criteria in this category.
• Additional points can also be earned for Innovation in Design, which recognizes exceptional or innovative performance beyond the standard prerequisites and credits, and for Regional Priority, which addresses environmental priorities specific to the project’s local context.

Each LEED-certified project undergoes a rigorous application and review process, where it must not only meet the prerequisites for each category but also earn enough points across the categories to achieve the desired level of certification. This points system ensures that LEED-certified buildings and communities go beyond mere compliance to actively contribute to a healthier, more sustainable future.

Tax Incentives

LEED certification in construction doesn't just result in more sustainable buildings; it also offers significant tax advantages for property owners and developers. These benefits can vary based on location, as different states and municipalities offer various incentives to encourage green building practices. Here are some of the key tax-related benefits of achieving LEED certification for construction projects:

Federal Tax Incentives

• Energy Efficient Commercial Buildings Deduction (Section 179D): Property owners may qualify for a tax deduction of up to $5.00 per square foot for buildings that achieve a certain level of energy efficiency above ASHRAE (American Society of Heating, Refrigerating and Air-Conditioning Engineers) standards. LEED-certified buildings often exceed these standards, making them eligible for this deduction.

• Investment Tax Credits for Renewable Energy: Buildings that incorporate renewable energy solutions, such as solar panels or geothermal systems, may be eligible for federal investment tax credits. While not exclusive to LEED-certified buildings, achieving LEED certification often involves the use of these technologies, making these credits more accessible.

State and Local Tax Incentives

• Property Tax Abatements: Some local governments offer property tax abatements for LEED-certified buildings. These abatements can significantly reduce property tax bills for a set number of years, depending on the level of LEED certification achieved.
• Sales Tax Exemptions: Certain states offer sales tax exemptions on the purchase of materials and equipment used in LEED-certified projects. This can lead to substantial savings during the construction phase.

The LEED Certification Process

Obtaining LEED certification involves several steps, starting from registration of the project with the USGBC, followed by a detailed documentation phase where the project’s adherence to LEED standards is recorded. After submission, the project undergoes a rigorous review process before the certification is awarded. The process can take anywhere from a few months to over a year, depending on the project size and complexity, and can vary in cost.

The LEED Certification Steps

1. Registration The project team decides to pursue LEED certification, selects the relevant rating system, and registers the project with the U.S. Green Building Council (USGBC).
2. Goal Setting and Team Assembly A multidisciplinary team, including a LEED Accredited Professional (LEED AP) when possible, is assembled to identify sustainability goals and select which LEED credits to target.
3. Credit Selection The project team chooses specific LEED credits to pursue, based on the project’s sustainability goals, budget, and environmental impact reduction targets.
4. Design and Implementation Sustainable strategies required for the selected LEED credits are integrated into the project's design and construction phases, with thorough documentation prepared for each credit.
5. Performance Period Some credits require demonstrating operational effectiveness through a performance period, typically after construction but before the final submission.
6. Submission for Review The project team submits detailed documentation for all pursued credits to the Green Business Certification Inc. (GBCI) for review, along with the certification fee.
7. Review and Certification GBCI reviews the submission against LEED standards. If successful, the project is awarded a LEED certification level (Certified, Silver, Gold, or Platinum) based on the total points earned.
8. Certification Maintenance and Recertification Projects may need to report on energy and water use to maintain certification and can pursue recertification every five years to demonstrate ongoing compliance and improvement.