City of Houston - Property Tax Abatement for Green Commercial Buildings

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

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%