Local Option - Real Property Tax Exemption for Green Buildings
Administered by Administered locally
If your local New York taxing jurisdiction has adopted this program, you can get a real property tax exemption on green building improvements (new construction or substantial renovations over $10,000) that achieve LEED Certified/Silver, Gold, or Platinum certification, or equivalent standards. The exemption percentage decreases over 10 years depending on your certification level—for example, LEED Platinum receives 100% exemption for years 1–3, then phases down to 20% in year 10. To qualify, construction must have started on or after January 1, 2013, you must obtain the required green building certification from an accredited professional, and you'll need to submit Form RP-470 to your local assessor for approval before the exemption takes effect.
This program creates customer value by reducing property tax burden on green building projects that meet recognized certification standards (LEED, Green Globes, ANSI, or equivalent). Your role is ensuring the project achieves actual certification by an accredited professional and documenting it with a building permit or certificate of occupancy; the exemption does not apply without verified certification. Note that the exemption is local-option—your customers' jurisdiction must have officially adopted it, and it applies only to the increase in assessed value from the green improvements, not special levies or assessments.
This is a local-option property tax incentive enacted in 2012 that applies to green building projects commenced after January 1, 2013 with project costs exceeding $10,000. Funding comes from foregone municipal and school district tax revenue (amount varies by jurisdiction and certification level); special ad valorem levies and assessments are never exempt. The program targets residential, multifamily, and commercial properties achieving verified LEED or equivalent certification, with exemption schedules that phase down over 10 years based on three certification tiers (Certified/Silver, Gold, Platinum). Jurisdiction administration requires local adoption via ordinance or resolution, assessor approval on Form RP-470, and coding on the assessment roll using codes 4784–4786.
Program details
- Program ID
- 5249
- Effective
- 1/1/2013
- Last updated
- 4/14/2026
Eligibility
- Sectors
- commercial residential multifamily residential
- Technologies
- solar - passive solar space heat solar photovoltaics wind (all) biomass geothermal heat pumps daylighting hydroelectric (small) anaerobic digestion comprehensive measures/whole building
Program summary
In July 2012 New York enacted legislation allowing municipal corporations to exempt green buildings from real property taxes. It is important to note that this law allows but does not require local governments to extend favorable property tax treatment to green buildings. In order for the exemption to apply, the taxing jurisdiction must first adopt this exemption.
In order to qualify for an exemption, the new construction or improvement (does not include routine maintenance or repairs) must commence on or after January 1, 2013; be valued in excess of $10,000; and projects must meet the LEED, Green Globes, American National Standards Institute, or substantially equivalent green building certification standards. Although the law references allowable green building rating systems/certifications other than LEED, the incentive amounts are described in relation to LEED certification levels. The amount of the exemption permitted varies by year and by the certification level achieved. Although not specifically identified in the law, it appears that the "year" refers to the property tax year in which the exemption is first claimed and subsequent years thereafter. The allowable exemption levels, stated in terms of the percentage of total taxes owed, are as follows:
| Year | LEED Certified/Silver | LEED Gold | LEED Platinum |
|---|---|---|---|
| 1 | 100% | 100% | 100% |
| 2 | 100% | 100% | 100% |
| 3 | 100% | 100% | 100% |
| 4 | 80% | 100% | 100% |
| 5 | 60% | 80% | 100% |
| 6 | 40% | 60% | 100% |
| 7 | 20% | 40% | 80% |
| 8 | 0% | 20% | 60% |
| 9 | 0% | 0% | 40% |
| 10 | 0% | 0% | 20% |
Projects must actually achieve certification in order to be eligible for an exemption, and the exemption must be approved by the local assessor prior to taking effect.
Contact & resources
- Contact email
- orpts.mail@tax.ny.gov
- Additional resources
Please verify current program details with the administering agency before making any financial decisions.
