City of Frederick Enacts Property Tax Credit For Energy Efficient Builders

The City of Frederick recently enacted a program that will give developers meeting Leadership in Energy and Environmental Design (LEED) standards a credit towards their annual property taxes. As reported by the Frederick News-Post,

The program would give builders tax breaks on existing and new buildings depending on the LEED certification level each structure achieves, reducing property taxes by 25 percent for all LEED-certified buildings, 50 percent for those receiving silver or gold ratings, and 75 percent for those receiving a platinum rating.

When discussing the program, the alderman considered capping the credits to address revenue concerns and offering greater credits in high-priority areas. Staff is looking into whether other tax credit programs are capped, but the alderman decided against offering larger credits in high priority areas.