Green Building Tax Abatements


The Nevada Governor's Office of Energy (GOE) administers the green building tax abatement program based on criteria set forth in the LEED or Green Globes rating system and certification from the U.S. Green Building Council (USGBC) or the Green Building Initiative (GBI) Both LEED and Green Globes rating systems provide a complete framework for assessing building performance and meeting environmental sustainable goals. They use industry recognized standards for designing, operating and certifying green building projects. The program was instituted in 2007 as an incentive for business owners to improve the energy efficiency of new and existing buildings. 

LEED or GG for New Construction (NC) is designed to guide and distinguish high-performance commercial and institutional projects, including office building, high-rise residential buildings, government buildings, recreational facilities, manufacturing plants and laboratories.

LEED or GG for Existing Buildings (EB) helps building owners measure operations, improvements and maintenance with a goal of maximizing operational efficiency while minimizing environmental impacts. 

LEED or GG for Commercial Interiors (CI) is applied to tenant improvements and used for certifying high-performance green interiors that are less costly to operate and maintain; and have a reduced environmental footprint.

LEED or GG for Core & Shell (CS) is a rating system for designers, builders, developers and new building owners who want to address sustainable design for new core and shell construction. Core and shell covers building elements such as structure, envelope and the HVAC system.

 

    Program Requirements, Project Certification and Benefits

    Nevada provides a property tax abatement for new non-residential and multifamily residential green buildings, and existing buildings which are renovated to meet certain green building standards. There are four levels of certification that a building can receive Certified, Silver, Gold and Platinum. 

    To qualify for the tax abatement applicants must earn a minimum number of points for energy conservation to meet the Silver Level or higher through the LEED or GG rating system.  LEED and GG building rating systems are based on a set of standards for the environmentally sustainable design, construction and operation of the building. The abatement amount depends on the certification level achieved and the term is based upon the number of points awarded for energy conservation by the USGBC or GBI for a period up to 10 years.  Existing buildings are limited to 5 years and capped at $100,000 per year. 

    For full information of Terms of Tax Abatement (NAC701A.280) Click Here.

      Success of the Program

      There are currently 124 LEED buildings in Nevada that are receiving tax abatements from the GOE program. The buildings range from existing, new construction, and core and shell. These include a wide range of building types: hotel casino resorts, retail shopping centers, health care facilities, manufacturing and distribution centers and restaurants. Of the 124 LEED buildings in Nevada, currently 29 are Silver, 65 are Gold, and 30 are Platinum or equivalent. GOE also has 35 properties registered in the program that are in the process of obtaining certification.

        Regulations and Requirements

        Assembly Bill 33 approved in the 2013 Nevada legislative session, modified the requirements for existing building abatement to a maximum of five years and making other modifications. The GOE completed and adopted regulation R127-13 on June 23, 2013, which provides that the Green Globes standard would be equivalent to LEED standards in determining eligibility of a building for a partial abatement of certain property taxes. Green Globes is a product of the Green Building Initiative promoting practical green building approaches to energy efficient and environmentally sustainable building practices.

          Regulations and Rulemaking

          NAC 701A Regulation Workshop - August 10, 2017

           Green Building Rulemaking, Related Documents and Resources