By Steve Rizer
New York has adopted a state law that will provide a tax incentive to builders and homeowners who construct energy-efficient green buildings. The measure (S. 1462D/Chapter 188) authorizes a local government or school district to provide a real property tax exemption for new construction or improvements made after the end of this year that meet Leadership in Energy and Environmental Design (LEED) certification standards for green buildings.
In addition to LEED certification, the Green Building Initiative’s Green Globes rating system, the American National Standards Institute, or other substantially equivalent standards for certification using a similar program for green buildings as determined by the municipal corporation would also be eligible for the exemption in New York State.
The level of exemption would be carried out as follows:
|Level of Exemption Available via S. 1462D/Chapter 188 |
|1||100 Percent||100 Percent||100 Percent|
To be eligible for the tax exemption, the construction must exceed $10,000, be certified as a green building, and be the subject of a valid building permit. Ordinary maintenance and repairs are not eligible for the exemption. The local assessor must approve the exemption, and local governments may establish a maximum exemption amount.