New York State Passes Real Property Tax Exemption Legislation for Green Buildings

Governor Cuomo has signed legislation which authorizes local governments or school districts to provide a real property tax exemption for new green building or renovation projects constructed after January 1, 2013 by local law, ordinance, or resolution.

Earlier this month, Governor Cuomo signed legislation authored by Assemblyman Fred W. Thiele, Jr. (I, D, WF-Sag Harbor) and State Senator Ken LaValle which authorizes local governments or school districts to provide a real property tax exemption for new green building or renovation projects constructed after January 1, 2013 by local law, ordinance, or resolution.

The legislation provides that any new commercial or residential construction or renovations exceeding $10,000 that meet LEED requirements (or those of other equivalent rating systems such as the Green Building Initiative’s Green Globes rating system, or other substantially equivalent green building certification systems) can be eligible for a tax exemption. The legislation was approved unanimously by the State Assembly (140-0) and Senate (59-0).

Depending on the certification level, the homeowner or business can receive up to a 100-percent exemption. For example, if a project earns LEED Silver, the full 100-percent exemption will be available for three years until phasing out in 20-percent increments by year 8. On the other hand, for qualifying LEED Platinum projects, the full 100-percent exemption will last for six years before decreasing by 20-percent per year until phase-out in year 11. Similarly, for LEED Gold, the full exemption lasts through year 4 until decreasing by 20-percent annually until phasing out completely in year 9.

“Under Governor Andrew Cuomo, New York has become pro-active in promoting efforts to reduce energy demands and greenhouse gas emissions by promoting energy efficiency in homes and businesses throughout the state,” Assemblyman Thiele told the Sag Harbor Express. “Significant measures have already been enacted in an effort to accomplish this goal such as on-bill financing, solar feed-in tariffs, and net metering. This legislation, my most significant environmental bill since the creation of the Community Preservation Fund (CPF), [provides] another major incentive to promote energy efficiency and conservation. Not only will this legislation reduce energy demand, it will promote economic development by encouraging new construction that meets green building standards.”

About Matt Manoogian

Matt Manoogian is an intern at gbNYC. He attends the College of Charleston and is majoring in Business Administration with concentrations in Real Estate and Environmental Studies. You can contact Matt at

about gbNYC

gbNYC is a multi-disciplinary consulting and real estate services firm. In addition to representing office tenants and commercial buyers in leasing and acquisitions, we also provide innovative consulting solutions from a unique, green building perspective. We advise on green building financial incentives, comment on proposed green building marketing strategies, author white papers, treatises, and market analyses, organize seminars on the LEED process and professional accreditation, and provide advice and analysis on green building risk management and the overall state of green real estate, leasing, and construction, in New York City and beyond.

Our blog, the gbNYC+ journal of real estate, law, + sustainability, delivers consistent, original content - from a New York City perspective - on how technology, data, and sustainability are changing how we interact with our built environment. Subscribe below and receive new articles as they're published or connect with our social media presence to join our ongoing conversation about real estate and sustainability, in the Big Apple and beyond. Contact us at (201) 835-8530 or for more information about our services and to discuss how we can assist you.

, , , , , ,


  1. Tax Incentives for Green Condos « - Friday, August 3, 2012

    [...] has come through the Condo Reporter and Green Buildings NYC that condo developers in New York State are now eligible for a 100% real property tax exemption if [...]

gbNYC Tenant Resources Feature

tenant resources

The commercial office leasing process is complicated. And so is figuring out where to start your search for office space in New York City. gbNYC's tenant resources - from our blog and leasing FAQ to our unwavering dedication to our clients and commercial real estate - can help you get the best possible deal for your next office, in the best location, and at the best price.
gbNYC Submarket Feature


New York City is a big place, and figuring out the most suitable location for your office can seem like an insurmountable challenge. Our submarket guide demystifies Gotham's dizzying range of neighborhoods with profiles, articles, new developments, and recent leasing statistics like average asking rents and vacancy rates.
gbNYC Database Feature

office database

We've built a database of the best commercial properties in New York City, focused on LEED-certified, Energy Star-labeled, and historic office buildings. Search for your ideal office building by location, certification, size, or owner. Then contact us to discuss current availabilities and your specific office needs.