The Green Roof Tax Credit is a credit against the Business Income and Receipts Tax (BIRT). A business is provided the credit to reward the construction of a roof that supports living vegetation.
For tax years 2007 through 2015, the credit that may be claimed is 25% of all costs incurred to construct the green roof, not to exceed $100,000. For tax years 2016 and thereafter, the credit to be claimed has increased to 50% of all costs incurred to construct the green roof, not to exceed $100,000.
Applying for the credit
A business seeking the Green Roof Tax Credit must file an application with the Department of Revenue. Revenue will approve the application if it contains all the required information and if the applicant is compliant with all City and School District taxes.
After approval of the application, the applicant must execute a commitment agreement adhering to certain statutory requirements, which include the applicant’s commitment to maintain the green roof for a period of five years after its completion.
Receiving the credit
The applicant, after certifying completion of the construction of the green roof in accordance with plans approved by the Department of Licenses and Inspections (L&I), may seek to claim the credit on the BIRT return for the tax year in which the construction of the green roof was completed.