Community Reinvestment Area
The City of Cincinnati may offer a property tax abatement to a company that is considering building or renovating a commercial facility. To qualify, the company must demonstrate that the project is not financially viable without the abatement. The City of Cincinnati also offers an abatement for properties achieving Leadership in Energy and Environmental Design (LEED) certification through the U.S. Green Building Council. The size of an abatement varies between projects and depends upon the taxable value of the improvements that are made to a property.
How does CRA work?
Suppose an investor enters into an agreement with the City to invest $1 million to renovate a commercial property. In this case, the abatement is for 50% of the new value for a 12-year term.
| Market value of new investment | $1 million |
| Assessed value of investment | $350,000 |
| Commercial property tax rate | 0.076080097 |
| Property tax on new investment | $26,628 |
| Annual abatement | $13,314 |
| Total abatement | $159,768 |
The maximum abatement, net of a payment to the school district, is 75% of the new taxable value. The maximum term on a renovation project is 12 years; for new construction it is 15 years.
Which projects are eligible?
- Projects that result in at least $40,000 in investment.
- Projects that result in net, new job creation.
- The investor must demonstrate that the incentive is a major factor in its decision to expand or locate in Cincinnati.
- The project cannot begin prior to approval by the City.
- The City also offers abatements for investors that achieve Leadership in Energy and Environmental Design (LEED) certification through the U.S.Green Building Council.
Fees
The State of Ohio charges a $750 application fee and an annual fee of 1% of the value of the abatement (minimum $250/maximum $2,500).
How do I learn more?
Contact The City of Cincinnati's Economic Development Division at (513) 352-2499 or edinfo@cincinnati-oh.gov