Tax abatement programs are prevalent in many areas, including Cincinnati, to provide financial incentives in the form of tax exemptions which reduce property taxes. In Cincinnati, this incentive is tied to the level of LEED certifications for new and remodeled homes, allowing homeowners to pay taxes only on the pre-improved value, or land value for a new home, of their property for up to 15 years. The simple goal is intended to benefit the City by incentivizing individuals to build high-quality sustainable homes in Cincinnati. With the construction of these homes, the City enjoys a number of direct and indirect benefits from this investment including:
Longer tax abatement periods and higher maximum abatements may be achieved for properties that meet Leadership in Energy and Environmental Design (LEED) standards. Since LEED homes benefit both homebuyers and the environment, Redknot has focused on creating homes with these guidelines in mind. Take a look at the charts below for a better understanding of how LEED certifications can affect tax abatements in Cincinnati. See highlighted the current amounts and durations compared to the amended for LEED Certified, new construction homes.
|LEED Level/Qualification||Cap||Term (Years)|
|Non LEED Certified||$275,000||10|
|Leed Certified & Visitable||$275,000||14|
|LEED Gold LBC Net Zero||$562,000||15|
|LEED Platinum / LBC Full Cert||No Limit||15|
|LEED Level Qualification||Cap||Term (Years)|
|Non LEED Certified||$200,000||10|
|LEED Gold LBC Net Zero||$500,000||15|
|LEED Platinum / LBC Full Cert||$650,000||15|
|Bonus Criteria (Can be added to any tier)||Additional Cap Increase|
For more information on the City of Cincinnati tax abatement program (aka Community Reinvestment Area), please visit https://choosecincy.com/resources/communities/.
The money saved via property tax reductions is significant making it the biggest benefit for homeowners. This is done by lowering development costs for homeownership resulting in either cost savings or more square footage with higher-end finishes in your original budget. Here at Redknot Homes, we can help to maximize this incentive with our building processes.
A current tax abatement can increase the resale value since the abatement transfers with the sale of your home.
Abatement eligible neighborhoods consistently experience tremendous growth at much larger and quicker rates, making your property more valuable in the process.
LEED certified means “Leadership in Energy & Environmental Design” which benefits the homeowner in energy cost savings from building efficiencies.
Attracting and retaining city residents in turn stimulates community revitalization causing a ripple effect of benefits for the homeowner and the city, including:
Redknot is an expert at following these very detailed processes to ensure the LEED certified requirements are met to capture this incentive! In fact, Redknot has never missed a LEED certification target meaning that every new homeowner has enjoyed the full tax abatement that they desired.
Not only are we experts at crafting the strongest LEED certified building processes for your home, we also have a large selection of lot options to consider that are in tax abatement eligible neighborhoods. City building is our niche, we know the ropes and handle all of the complex details below of building an eco-friendly, tax abated home for you and take pride in being the best at it!
You can focus on building the unique custom home of your dreams in our beautiful city, while also deciding how you’ll spend all that extra money you’ll be saving on property taxes!
If you are looking for a new home with potential tax abatement benefits, then contact us today to start your search.