City of Houston - Property Tax Abatement for Green Commercial Buildings (Texas)
Last modified on February 12, 2015.
Financial Incentive Program
|Name||City of Houston - Property Tax Abatement for Green Commercial Buildings|
|Incentive Type||Property Tax Incentive|
|Eligible Technologies||Comprehensive Measures/Whole Building, Passive Solar Space Heat, Solar Water Heat, Solar Space Heat, Photovoltaics, Wind, Biomass, Geothermal Heat Pumps, Daylighting, Small Hydroelectric|
|Energy Category||Renewable Energy Incentive Programs, Energy Efficiency Incentive Programs|
|Amount|| LEED Basic “Certified” Level: 1.0%|
LEED Silver Level: 2.5%
|Equipment Requirements|| Must be LEED certified|
Must be new construction
|Program Administrator||Economic Development Division of the City Finance Department|
In September 2009, the City of Houston Tax Abatement Program was enacted (Ordinance No. 2009-858), establishing a partial tax abatement for U.S. Green Building Council Leadership in Energy and Environmental Design (LEED)-certified commercial buildings. Since its inception, the tax abatement has been renewed twice, most recently in 2014 (Ordinance No. 2014-245).
The Ordinance specifies the abatement as follows:
“If the owner of a new or refurbished commercial facility has registered with the U.S. Green Building Council seeking LEED Certification, then the Economic Development Division…may recommend approval by the City Council of a partial tax abatement for the incremental investment associated with obtaining such certification. The agreement shall be effective up to 10 years, at a percentage based upon the level of certification actually obtained after completion of construction or refurbishment:
- Basic “Certified” Level: 1.0%
- Silver Level: 2.5%
- Gold Level: 5.0%
- Platinum Level: 10%”
Minimum Investment Requirement
The LEED building tax abatement can be a stand-alone abatement or part of a standard economic development tax abatement. If used as a stand-alone tax abatement, the minimum investment requirement to be eligible for the partial tax abatement is:
- $1 million for an investment in a commercial structure that achieves Platinum LEED Certification,
- $2 million for an investment in a commercial structure that achieves Gold LEED Certification,
- $4 million for an investment in a commercial structure that achieves Silver LEED Certification, and
- $10 million for an investment in a commercial structure that achieves basic LEED Certification.
|Contact Name||Gwendolyn Tillotson|
|Department||City of Houston|
|Division||Finance Department: Economic Development Division|
|Address||901 Bagby St., 4th Floor|
Authorities (Please contact the if there are any file problems.)
|Authority 1:||Article IV § 44-131|
|Authority 2:||Houston1.pdf Ordinance No. 14-245|
- Incentive and policy data are reviewed and approved by the N.C. Solar Center's DSIRE project staff.