CRA Tax Incentive Program

A CRA is a program authorized by the State of Ohio that allows a local government (like the Village of Albany) to offer real property tax abatements to incentivize new construction, expansion and rehabilitation in areas where there is a demonstrated need for reinvestment.

Building a new home, store or office or investing in renovations can make real property taxes go up. This is because improvements to a property increase the property’s value, and real property taxes are a percentage of the taxable real property value.

A real property tax abatement in a CRA makes it possible for property owners to avoid all or a portion of the tax increase caused by the improvements over a 10-15 year period.

If you are a business owner or homeowner who would like to build, expand or substantially rehabilitate a building, a CRA real property tax abatement can result in a significant annual savings to you over a period of 10-15 years. The tax savings keeps more money in your pocket that you can invest in your project, other expenses, or savings. If you are someone who does not have plans to improve your property, you will indirectly benefit from the CRA program because it will encourage improvement of other village properties as well as business attraction and expansion, which can improve the value of your property as well as Albany’s general quality of life.

You must own a residential or business property within the CRA and do one of the following: (1) Undertake new construction of a commercial/industrial building or one or more residential units, or (2) Expand or rehabilitate an existing residential, commercial or industrial building to an extent that it increases the taxable real property value.

Term length and amounts are determined by several factors on a case-by-case basis. It is important to note that projects must add substantially to the taxable real property value in order to realize significant savings through an abatement. Projects involving new construction, significant expansions, and major rehabilitation (i.e. gutting/reconstructing the interior of a building) will generally add substantial taxable value. Smaller remodeling projects, such as replacing a roof, windows, siding, flooring, appliances, cabinets or furnishings may not result in any change in taxable value.

You must fill out the appropriate application, Residential or Commercial-Industrial, following all instructions. When completed, submit the application with all required documentation to the CRA Housing Officer.

All Residential CRA applications are submitted to the CRA Housing Officer AFTER your project is completed. They will then review the information and documents that you have provided and verify the submission is eligible for abatement, assign it to the correct Tier, and certify that the application is correct and complete.

If RESIDENTIAL remodeling or construction meets the requirements for abatement, the Housing Officer shall forward the application to the Athens County Auditor with certification that an abatement is granted.

All Commercial-Industrial CRA applications are submitted to the CRA Housing Officer BEFORE your project begins. They will then review and verify the submission is completed as required and assign it to the correct Tier prior to submitting it to the CRA Review Board.

Upon acceptance of your application, the Review Board will determine the terms and any conditions that will become part of a binding agreement on a case-by-case basis in advance of construction or remodeling occurring pursuant to the rules outlined in Ohio R.C. 3765.67.

No. A CRA tax abatement only applies to increases in real property taxes caused by improvements to a property. Pre-improvement real property taxes must still be paid.

Perhaps. You will still be responsible for paying pre-improvement real property taxes on the property, which could go up or down due to periodic County Auditor re-assessments or tax levies.

After a tax abatement expires, you will begin paying the full amount of real property taxes on both the pre-improvement and post-improvement value of a property.