City of Cincinnati - Property Tax Abatement for Green Buildings (Ohio)

Summary

Last modified on February 12, 2015.

Financial Incentive Program

Place	Ohio
Name	City of Cincinnati - Property Tax Abatement for Green Buildings
Incentive Type	Property Tax Incentive
Applicable Sector	Commercial, Industrial, Residential, Multi-Family Residential
Eligible Technologies	Comprehensive Measures/Whole Building, Passive Solar Space Heat, Solar Water Heat, Solar Space Heat, Photovoltaics, Wind, Daylighting
Active Incentive	Yes
Implementing Sector	Local
Energy Category	Renewable Energy Incentive Programs, Energy Efficiency Incentive Programs
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 Commercial Renovations: Effective 75% tax abatement for 8-12 years
Equipment Requirements	Buildings must achieve LEED certification Commercial buildings: minimum investment of 40,000
Start Date	10/23/2007 (amended December 2007)
Maximum Incentive	For buildings with permits received on or before January 31, 2013: 562,792 maximum improved market value for residential buildings except no limitation with LEED Platinum certification (the maximum incentive increases by 3% every year) For buildings with permits received after January 31, 2013: 275,000 improved market value for Non-LEED certified and LEED-certified buildings 400,000 improved market value for LEED Silver buildings 562,000 improved market value for LEED Gold buildings No limit for LEED Platinum buildings 275,000 per dwelling for multi-unit (4 or more) buildings
Program Administrator	Cincinnati Dept. of Community Development
Website	http://www.cincinnati-oh.gov/community-development/housing-assistance/residential-property-tax-abatement/
References	DSIREDatabase of State Incentives for Renewables and Efficiency

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:

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Incentive Contact

Contact Name	Eric Denson
Department	Cincinnati Dept. of Community Development
Address	805 Central Avenue, Suite 700
Place	Cincinnati, Ohio
Zip/Postal Code	45202
Phone	(513) 352-4981
Phone 2	(513) 352-6146
Email	eric.denson@cincinnati-oh.gov
Website	http://www.cincinnati-oh.gov/community-development/

Authorities (Please contact the if there are any file problems.)

Authority 1:	City Ordinance 182-2007
Date Effective	10/23/2007 (amended December 2007)
Date Enacted	2007-05-16

Authority 2:	City Ordinance 446-2007
Date Enacted	2007-12-12

Authority 3:	City Ordinance 502-2012
Date Effective	2013-02-01
Date Enacted	2012-12-19

• Incentive and policy data are reviewed and approved by the N.C. Solar Center's DSIRE project staff.