The City of Cincinnati offers a property tax abatement for projects achieving Leadership in Energy and Environmental Design (LEED) certification through the US Green Building Council. The 75% abatement is offered for new construction or renovation of commercial or multi-unit (4 or more units) residential space.
The City also offers an abatement for projects that do not achieve LEED certification (Please see: Commercial Property Tax Abatement).
How does a CRA Abatement work?
Suppose a business enters into an agreement with the City to invest $1 million to renovate its commercial property. In this case, the abatement is for 75% of the new value for a 12-year term.
Market value of new investment | $1,000,000 |
Assessed value of new investment (35%) | $350,000 |
Commercial property tax rate | 0.077444543 |
Property tax on new investment | $27,105 |
Annual abatement (75%) | $20,330 |
Total abatement (12-year term) | $243,960 |
The maximum abatement, net of a payment to the school district, is 75% of the new taxable value. The maximum term on a renovation project is 12 years; for new construction it is 15 years.
Which projects are eligible?
• Company must make minimum investment of $40,000.
• The project cannot begin prior to City approval.
Fees:
There is a $750 application fee payable to the Ohio Department of Development. There is also an annual fee of 1% of the value of the abatement (minimum $250/maximum $2,500)
Links:
Application (PDF)
Fact Sheet (PDF)
Contact:
Eric Denson, Senior Community Development Analyst
Phone: (513) 352-4981
Fax: (513) 352-6257
eric.denson@cincinnati-oh.gov
*If the project site is located in the Central Business District, please contact the City Economic Development Division at www.choosecincy.com.
