Property Tax Abatements

Some municipalities have created policies that link tax abatement to demonstrated energy performance, enhancing building owners’ bottom lines and encouraging private-sector investment in improvements.

Tax abatements may influence payback calculations and encourage behavior-based energy strategies due to performance-based evaluation.

Tax abatement resembles a finance mechanism, due to the waived stream of tax revenue for the municipality and the value conveyed to the owner in the form of operating income.