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Ohio

Ohio

Incentives/Policies for Renewables & Efficiency

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City of Cincinnati - Property Tax Abatement for Green Buildings   

Last DSIRE Review: 02/21/2013
Program Overview:
State: Ohio
Incentive Type: Property Tax Incentive
Eligible Efficiency Technologies: Comprehensive Measures/Whole Building
Eligible Renewable/Other Technologies: Passive Solar Space Heat, Solar Water Heat, Solar Space Heat, Photovoltaics, Wind, Daylighting
Applicable Sectors: Commercial, Industrial, Residential, Multi-Family Residential
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
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
Equipment Requirements:Buildings must achieve LEED certification
Commercial buildings: minimum investment of $40,000
Start Date:10/23/2007 (amended December 2007)
Web Site: http://www.cincinnati-oh.gov/community-development/housing-assist...
Authority 1:
Date Enacted:
Date Effective:
City Ordinance 182-2007
05/16/2007
10/23/2007 (amended December 2007)
Authority 2:
Date Enacted:
City Ordinance 446-2007
12/12/2007
Authority 3:
Date Enacted:
Date Effective:
City Ordinance 502-2012
12/19/2012
02/01/2013
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
Phone 2: (513) 352-6146
Fax: (513) 352-6113
E-Mail: eric.denson@cincinnati-oh.gov
Web Site: http://www.cincinnati-oh.gov/community-development/
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Disclaimer: The information presented on the DSIRE web site provides an unofficial overview of financial incentives and other policies. It does not constitute professional tax advice or other professional financial guidance, and it should not be used as the only source of information when making purchasing decisions, investment decisions or tax decisions, or when executing other binding agreements. Please refer to the individual contact provided below each summary to verify that a specific financial incentive or other policy applies to your project.

While the DSIRE staff strives to provide the best information possible, the DSIRE staff, the N.C. Solar Center, N.C. State University and the Interstate Renewable Energy Council, Inc. make no representations or warranties, either express or implied, concerning the accuracy, completeness, reliability or suitability of the information. The DSIRE staff, the N.C. Solar Center, N.C. State University and the Interstate Renewable Energy Council, Inc. disclaim all liability of any kind arising out of your use or misuse of the information contained or referenced on DSIRE Web pages.

Copyright 2013 - 2014 North Carolina State University, under NREL Subcontract No. XEU-0-99515-01. Permission granted only for personal or educational use, or for use by or on behalf of the U.S. government. North Carolina State University prohibits the unauthorized display, reproduction, sale, and/or distribution of all or portions of the content of the Database of State Incentives for Renewables and Efficiency (DSIRE) without prior, written consent.