New York Enacts Legislation Authorizing Real Property Exemptions for Green Buildings.

New York Enacts Legislation Authorizing Real Property Exemptions for Green Buildings.

On July 18, 2012, New York Governor Andrew Cuomo signed Senate Bill 1462 into law authorizing a municipal corporation to provide a real property tax exemption for improvements to Leadership in Energy and Environmental Design (LEED) certified or other green initiative certified buildings. Municipal corporations will now decide whether to adopt the exemption. Companies considering construction of a potentially qualifying improvement should monitor local legislative activity to see whether the relevant localities have adopted the exemption and should start planning for construction projects scheduled for 2013.

Under the authorizing statute, the exemption would apply to construction projects beginning on or after January 1, 2013. Local law, however, may specify a later date. The exemption would be available only to the extent that the improvement increases the assessed value of the real property. To qualify, the real property improvement must be documented by a building report, and the value of the improvement project must exceed $10,000. Ordinary maintenance and repair projects will not qualify as eligible improvement projects.

For property that is certified by an accredited LEED professional as meeting the certified, silver, gold, or platinum designations, the exemptions are equal to 100% of the increase in assessed value as a result of the improvement in the first year. The exemption is gradually phased out over ten years, with 20% exempted for platinum buildings in year ten and no exemption in year ten for certified, silver, and gold buildings. The LEED professional must file a copy of the LEED certification with the local Assessor’s Office, and the Assessor must approve the certification.

Author

Stay Tax-Savvy

Get expert tax tips and insights delivered to your inbox. Stay ahead with our specialty tax newsletter.

Recent Posts

r&d tax credits 2025

Unlock Growth Potential with Strategic R&D Tax Credits 2025

In today’s fast-paced economy, innovation isn’t just a buzzword—it’s a necessity. Businesses that prioritize research and development (R&D) gain a decisive edge, outpacing competitors and reshaping industries. The R&D Tax Credit, established under IRS Section 41, serves as a powerful tool to fuel this progress. Far more than a tax deduction, it’s a strategic resource for

Read More »
solar projects

Unlocking Tax Benefits for Solar Installations: How Cost Segregation Can Help

Solar installations are an increasingly popular investment for businesses and property owners, offering energy savings, environmental benefits, and tax incentives. But did you know that combining a solar installation with cost segregation can significantly enhance the financial returns of your project? At Engineered Tax Services, we work with property owners to maximize the tax benefits

Read More »
multifamily properties

Unlocking Value in Multifamily Investments: A Knoxville Apartment Case Study

For many multifamily property owners, an investment’s true potential often lies just beneath the surface. Beyond collecting monthly rents, it’s about leveraging every available tax advantage to enhance long-term returns. In the case of a well-established apartment complex in Knoxville, TN, strategic tax planning turned a traditional real estate play into a high-impact financial strategy.

Read More »

Contact Us