City of Houston – Property Tax Abatement for Green Commercial Buildings

Program Overview

Implementing Sector Local
Category Financial Incentive
State Texas
Incentive Type Property Tax Incentive
Web Site http://www.houstontx.gov/igd/
Administrator Economic Development Division of the City Finance Department
Expiration Date May 19, 2024
Cities Houston
Eligible Renewable/Other Technologies Solar - Passive, Solar Water Heat, Solar Space Heat, Solar Photovoltaics, Wind (All), Biomass, Geothermal Heat Pumps, Daylighting, Hydroelectric (Small)
Eligible Efficiency Technologies Comprehensive Measures/Whole Building
Applicable Sectors Commercial
Incentive Amount LEED Silver Level: 5%
LEED Gold Level: 10%
LEED Platinum Level: 15%
Equipment Requirements Must be LEED certified
Must be new construction

Summary

Note: These guidelines and criteria for tax abatement were readopted by the City Council on May 4th, 2022, and absent further extension they will expire on May 19, 2024.

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. The tax abatement was extended most recently in 2022 under ordinance 2022-344.

Program eligibility

Under the program a facility is eligible for tax abatement if it meets the following requirements.
  1. It is a new commercial facility whose owner has registered with USGBC to apply for LEED certification for the facility;
  2. Construction of the facility has not commenced prior to the application for abatement; and
  3.  The total project cost is reasonably expected by the applicant to be at least $3,000,000. This type of tax abatement may be a stand-alone abatement or part of a standard economic development abatement.

Value and Terms

 

A tax abatement shall be granted on the January 1st valuation date of the year that both construction has finished and a LEED certification has been obtained for the facility. This abatement will be for the percentage of the increase in the facility’s value over the base year value that corresponds to the following LEED certification levels:

 

  • Silver             5%
  • Gold             10%
  • Platinum    15%

Authorities

Name Article IV § 44-131
Date Enacted 09/16/2009
Expiration Date 03/30/2018
Name Ordinance No. 16-252
Date Enacted 03/30/2016
Effective Date 03/30/2016
Expiration Date 03/30/2018
Name Ordinance No. 20-1091
Name Ordinance No. 22-344

Contact

Gwendolyn Tillotson
Organization:
Deputy Director Office of Economic Developmen

 

Phone:
(832) 393-0937

 

Jennifer Curley
Organization:
Senior Staff Analyst Office of Economic Devel

 

Phone:
(832) 393-0981