An international comparison of green star building allowances with emphases on a South African application

Abstract

In South Africa around 23% of emissions are caused by the operation of residential and non-residential buildings. In the last five years building owners and contractors have begun to focus on more environmentally friendly building techniques. This has resulted in an emerging market in South Africa for green buildings. A green building is one that is environmentally responsible, while it is energy and resource efficient. The Green Building Council of South Africa was formed to establish the requirements for qualification as a green building. As green buildings are a fairly new concept in South Africa, an additional allowance will encourage building owners to construct a green building as opposed to an ordinary one. Currently a tax allowance is available under Section 13 of the Income Tax Act for manufacturing and a Section 13quin allowance for newly constructed commercial buildings. In other countries such as the USA, an allowance is obtainable for green buildings under the Federal Tax Code. The first 5-Star Green Star SA Office Design v1 rated building in South Africa was used as a case study to indicate the effect of an additional tax allowance on South Africa. The case study indicated that to be a green building, many requirements have to be met, thus an additional tax allowance would encourage building owners to construct green buildings and in a way it can be seen as an incentive to promote sustainability in the long term. AFRIKAANS : In Suid-Afrika word 23% van kweekhuisgasse veroorsaak deur die bedryf van residensiële en nie-residensiële geboue. In die afgelope 5 jaar het gebou eienaars en oprigters begin fokus op omgewingsvriendelike gebou tegnieke. Gevolglik het dit aanleiding gegee tot ‘n opkomende mark vir groen geboue in Suid-Afrika. ‘n Groen gebou is ‘n gebou wat verantwoordelik is vir die omgewing en ter selfde tyd energie en hulpbron effektief is. Die ‘Green Building Counsel of South Africa’ is gestig om die vereistes om as groen gebou te kan kwalifiseer vas te stel. Groen geboue is ‘n redelike nuwe konsep in Suid-Afrika en dus sal ‘n addisionele belastingtoelaag gebou eienaars aanspoor om eerder ‘n groen gebou op te rig teenoor ‘n gewone gebou. Tans is daar slegs ‘n toelae onder artikel 13 van die Inkomstebelasting Wet vir geboue wat gebruik word in die proses van vervaardiging of artikel 13quin toelae vir nuut en ongebruikte kommersiële geboue. In ander lande soos die VSA is daar reeds belastingtoelae vir groen geboue beskikbaar onder die ‘Federal Tax Code’. Die eerste 5 ‘Star Green Star SA Office Design v1’ gegradueerde gebou in Suid-Afrika is in die gevallestudie gebruik om die effek van addisionele belastingtoelaag aan te dui. Die gevallestudie dui aan dat ‘n groen gebou aan baie vereistes moet voldoen, en dus sal ‘n addisionele belastingtoelaag gebou eienaars aanspoor om ‘n groen gebou op te rig. Die addisionele geboutoelaag kan ook gesien word as aansporing om volhoubaarheid te bevorder.