NY to allow tax exemption for LEED buildings

A bill signed by New York Gov. Andrew Cuomo last month is starting to trickle down through local municipalities, which must now decide whether to adopt a tax exemption for buildings certified by Leadership in Energy and Environmental Design (LEED) or other green initiative standards.

Senate Bill 1462, which became law on July 18, 2012, authorizes a municipal corporation to provide a real property tax exemption for certified green building improvements. 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 Jan. 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 imp