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City of Cincinnati - Property Tax Abatement for Green Buildings

Last Review: 2013-02-21
Incentive Type: Property Tax Incentive
Eligible Efficiency Technologies: Comprehensive Measures/Whole Building, Passive Solar Space Heat, Solar Water Heat, Solar Space Heat, Photovoltaics, Wind, Daylighting
Applicable Sectors: Commercial
Incentive Amount: Residential New Construction: 100% tax abatement for 15 years
Residential Renovations: 100% tax abatement for 10 years
Commercial New Construction: Effective 75% tax abatement for 8-15 years
Commercial Renovations: Effective 75% tax abatement for 8-12 years
Equipment Requirements: Buildings must achieve LEED certification
Commercial buildings: minimum investment of 40,000
Website: http://www.cincinnati-oh.gov/community-development/housing-assistance/residential-property-tax-abatement/

Summary:

The City of Cincinnati offers property tax abatements for residential and commercial buildings constructed or renovated to meet LEED certification standards. The original green building tax abatement ordinance was passed in 2006 and has been amended four times since, culminating in the current abatement rules clarifications passed December 19, 2012. The incentive is available for any building within city limits and does not require a demonstration of financial need. The residential designation applies to structures with up to three units and residential condominiums, while residential structures with four or more units are classified as commercial buildings. Industrial structures are also eligible to receive incentives under the commercial program. An agreement must be executed with the Department of Community Development before construction begins. The tax abatement rules for buildings that received permits on or before January 31, 2013 are as follows:

Residential Buildings

  • 100% property tax abatement for 15 years (new construction) or 10 years (existing building retrofits) up to $562,792
  • Market value limit increases by 3% each year
  • No value limitation for structures that achieve LEED Platinum certification
  • Minimum investment of $2,500 for one- and two-unit structures (new construction or rehab) and a minimum investment of $5,000 for 3-unit structures is required.

Commercial and Industrial

  • 100% tax abatement (before payment in lieu of taxes) for 15 years (new construction) or 12 years (existing building renovations)
  • No cap on the value of improvements
  • Requires an agreement signed prior to the start of construction that must be approved by the City Council
  • Owner must enter into an agreement with the local Board of Education district to pay the board an amount equal to 25% of the avoided property taxes, effectively making the tax abatement 75%.
  • Application fee of $750 to the State of Ohio, plus an annual fee amounting to 1% of the value of the tax abatement with a minimum of $500 and a maximum of $2,500.

Tax abatements for buildings that received permits after January 31, 2013 are as follows:

Residential Buildings

  • 100% property tax abatement for 15 years (new construction) or 10 years (existing building retrofits) up to $275,000 for Non-LEED certified and LEED-certified buildings; $400,000 for LEED Silver buildings; and $562,000 for LEED Gold buildings
  • No value limitation for structures that achieve LEED Platinum certification
  • Minimum investment of $2,500 for one- and two-unit structures (new construction or rehab) and a minimum investment of $5,000 for 3-unit structures is required.

Commercial and Industrial

  • 100% tax abatement (before payment in lieu of taxes) for 8-15 years; see below chart
  • No cap on the value of improvements, except multi-unit (4 or more) residential buildings are limited to $275,000 per dwelling unit
  • Requires an agreement signed prior to the start of construction that must be approved by the City Council
  • Owner must enter into an agreement with the local Board of Education district to pay the board an amount equal to 25% of the avoided property taxes, effectively making the tax abatement 75%.
  • Application fee of $750 to the State of Ohio, plus an annual fee amounting to 1% of the value of the tax abatement with a minimum of $500 and a maximum of $2,500.
  • Additional provisions apply to commercial buildings using Community Reinvestment Area LEED abatements.

The duration of the commercial tax abatement varies by certification level and type of building and improvements, per the chart below:

  Renovation - Residential (4+ units) Renovation - Commercial/Industrial/Mixed Use New Construction - Residential (4+ units) New Construction - Commerical/Industrial/Mixed Use
Non-LEED 8 years 12 years 8 years 15 years
LEED Certified 8 years 12 years 8 years 15 years
LEED Silver 12 years 12 years 15 years 15 years
LEED Gold 12 years 12 years 15 years 15 years
LEED Platinum 12 years 12 years 15 years 15 years

 


Contact:
Eric Denson
Cincinnati Dept. of Community Development
805 Central Avenue, Suite 700

Cincinnati, OH 45202
Phone:(513) 352-4981 Ext.
Phone 2:(513) 352-6146
Email: eric.denson@cincinnati-oh.gov
Web site: http://www.cincinnati-oh.gov/community-development/

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