Rebates and Tax Incentives: New York Green Building Tax Exemption

On July 18th of 2012, Governor Cuomo of New York signed into law the authorization for municipal corporations to provide a tax exemption for improvements to property started after January 1st, 2013 and which meet green certification standards. This state law provides authorization for the local jurisdiction to take action, though local law may specify a later date. All buildings certified as in compliance with ANSI-approved ICC 700 National Green Building Standards are eligible.

This property tax exemption is only available if the remodel or renovation increases the previously-assessed value of the property. The value of this improvement must exceed $10,000. Unfortunately, ordinary maintenance and repair projects do not qualify for the Green Building Tax Exemption, but significant renovation or remodeling qualify.

Both residential and mixed-use buildings must be certified as NDBS-compliant, having gained the title of Bronze, Silver, Gold, or Emerald. The tax exemptions are equal to 100% of the increase in assessed value as a result of the improvement within the first year. However, this exemption is gradually phased out over ten years; there is a 20% exemption for Emerald buildings in year ten, but no exemption for Bronze, Silver, and Gold buildings at in that same year.