Editorial: The greening of Nevada

Friday, May 4, 2007 | 7:03 a.m.

Now that the Legislature has passed a bill suspending a 2005 law that granted overly generous tax breaks to builders using "green" technologies in their commercial projects, the question is: What now?

A reasonable law of this nature is critical to promote conservation and renewable energies. So we hope the Legislature and governor can work together to salvage it in some form this legislative session.

Gov. Jim Gibbons said Thursday there is a likelihood he will veto the bill suspending it, which would force the Legislature to waste precious time on an override vote. (The legislative session ends June 4.)

We'd like to see Gibbons sign the suspension bill, Senate Bill 567. Although it would be extraordinary, we would then like to see the Legislature rescind SB567 and immediately amend the 2005 law - possibly with a cap on the tax breaks' total amount - to make it the workable incentive it should have been from the start.

If Gibbons followed through with his signature, the problem would be resolved.

Assembly Bill 3, which granted the tax breaks, received unanimous approval from the Legislature on June 7, 2005, during a one-day special session. It was signed by Gov. Kenny Guinn 10 days later.

We strongly support the law's intent, which is to encourage construction that meets standards set by the U.S. Green Building Council, a nonprofit organization.

What wasn't foreseen two years ago was the onrush of the green movement. Back then, it was thought that the impact on state revenue would be about $250,000.

The law provides property tax breaks of up to 50 percent for 10 years for builders meeting the national standards. The Legislature obviously erred badly in granting that high of a percentage for that length of time. Only one tax break has been granted under the law, but dozens more - including the MGM Mirage's $7.4 billion CityCenter project - are in the pipeline.

Analysts now say the tax break could cost the state as much as $900 million over the 10 years - obviously an unforeseen amount this Legislature is not going to allow.

We hope the governor, Legislature and affected builders can work together on reasonable amendments that keep Nevada heading in a green direction.