Solar & Battery Regulation & Incentive Programs

Local Option - Real Property Tax Exemption for Green Buildings

Program Overview


Category:
Financial Incentive
Program Type:
Property Tax Incentive
Implementing Sector:
State
State:
New York
Eligible Storage Technologies:
Solar - Passive, Solar Space Heat, Solar Photovoltaics, Wind (All), Biomass, Geothermal Heat Pumps, Daylighting, Comprehensive Measures/Whole Building, Hydroelectric (Small), Anaerobic Digestion
Website:
https://www.tax.ny.gov/research/property/assess/manuals/vol4/pt2/sec4_06/sec470.htm
Incentive Amount:
Upon local adoption, 20% - 100% of real property taxes owed; varies by year and certification level
Equipment Requirements:
Projects must meet the LEED, Green Globes, American National Standards Institute, or substantially equivalent green building certification standards; construction value must exceed $10,000
Administrator:
Administered locally
Applicable Sectors:
Commercial, Residential, Multifamily Residential
Start Date:
01/01/2013
Last Updated:
07/13/2020

Summary

In July 2012 New York enacted legislation allowing municipal corporations to exempt green buildings from real property taxes. It is important to note that this law allows but does not require local governments to extend favorable property tax treatment to green buildings. In order for the exemption to apply, a municipal corporation must first adopt an ordinance this effect.

In order to qualify for an exemption, the new construction or improvement (does not include routine maintenance or repairs) must commence on or after January 1, 2013; be valued in excess of $10,000; and projects must meet the LEED, Green Globes, American National Standards Institute, or substantially equivalent green building certification standards. Although the law references allowable green building rating systems/certifications other than LEED, the incentive amounts are described in relation to LEED certification levels. The amount of the exemption permitted varies by year and by the certification level achieved. Although not specifically identified in the law, it appears that the "year" refers to the property tax year in which the exemption is first claimed and subsequent years thereafter. The allowable exemption levels, stated in terms of the percentage of total taxes owed, are as follows:

Year LEED Certified/Silver LEED Gold LEED Platinum
1 100% 100% 100%
2 100% 100% 100%
3 100% 100% 100%
4 80% 100% 100%
5 60% 80% 100%
6 40% 60% 100%
7 20% 40% 80%
8 0% 20% 60%
9 0% 0% 40%
10 0% 0% 20%

Projects must actually achieve certification in order to be eligible for an exemption, and the exemption must be approved by the local assessor prior to taking effect. For further details, please see the full text of the enabling legislation.


Authorities

NameEnacted DateEffective DateExpired Date
N.Y. TAX. LAW § 19 : NY Code - Section 19: Green building credit07/18/201207/18/2012