City of Cincinnati: Property Tax Abatement for Green Buildings

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 three times since, culminating in the current abatement rules clarifications passed December 12, 2007. 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, including 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 are as follows:

Residential Buildings

• 100% property tax abatement for 15 years (new construction) or 10 years (existing building retrofits)
• Maximum improved value of $546,400, except if structure achieves LEED Platinum certification, in which case there is no value limitation.

• 100% tax abatement 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.
• 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.