I was sitting in on the USGBC's monthly Advocacy call this afternoon and heard about a state-local policy proposal to use property tax incentive for GHG reductions. Through a state-local partnership, owners of existing residential and commercial buildings who invest in qualifying outcome-based improvements would receive a property tax abatement. The state would develop minimum requirements and reimburse - in part or in full - participating local governments for lost tax revenue; the local government would implement the abatement program.
The anticipated improvements could, depending on state and local conditions and priorities, incorporate a combination of deep energy retrofits, electrification of heating and cooling, green building systems and green infrastructure. To receive the abatement, the property owner would annually submit outcome data (e.g., energy and water consumption and other data) as well as initially submitting documentation of improvements. Conceptually, the abatement would apply to the increased property value post-improvement.
By using performance metrics and annual reporting, the policy will provides states and local governments with built-in emission reduction tracking for purposes of tracking progress against climate commitments, as well as supporting policy refinement as needed. The policy concept offers the potential for significantly increasing renovation activity (green jobs) and would complement existing financing solutions aimed at energy efficiency, such as PACE.
