NYC Green Roof Property Tax Abatement is Improved

by | Jul 17, 2024 | NYC Property Tax

The New York City Green Roof Property Tax Abatement was just enhanced and extended three years. It increased the incentives and removed some of the restrictions that prevented more widespread adoption.

It passed the New York State Senate on April 2nd, the Assembly on May 23rd, and Governor Hochul signed it into law on June 28th.

Below are some highlights of what changed:

  • The minimum roof coverage area requirement was eliminated. The old law said the green roof had to cover at least 50% of the eligible building’s eligible rooftop space.
  • The minimum growth medium depth was reduced from 2 inches to 1½ inches.
  • The maximum regular abatement doubled from $5 per square foot to $10/sf.
  • For the enhanced abatement of $15/sf in certain areas, the growth medium minimum depth of 4 inches was eliminated.
  • The maximum amount of tax savings is still $200,000.
  • The total aggregate program cap of allowed abatements increased from $1 million to $4 million.
  • The NYC Department of Finance will give abatements on a first-come-first-serve basis, rather than a pro rata basis under the old law.
  • The application filing deadline was extended to March 15, 2026.
  • Abatements must commence before June 30, 2027.

Will these enhancements be generous enough to get more buildings to use the program?

According to DOF records, only two buildings have received the green roof tax abatement.

  • 838 Park Place in Crown Heights, Brooklyn, got $12,544 last year (2023/24) for 2,068-sf of eligible roof, and they were eligible for the enhanced abatement up to $15/sf.
  • 424 Park Place in Prospect Heights, Brooklyn, got $4,210 in 2021/22 for 805-sf of eligible roof (at $5/sf).

As of the date of this post, NYC’s websites, both the Department of Buildings and Department of Finance, have not yet been updated per the new law.

See the new law at: Bill Search and Legislative Information | New York State Assembly (nyassembly.gov)

For other media coverage, see: NY Extends Tax Breaks For Green Roofs On City Buildings – Law360 Real Estate Authority