"In January the Charlottesville City Council agreed to reduce the real-estate tax bills of owners of energy-efficient homes and businesses by 50 percent, drawing praise from area environmentalists.

But now owners will not see that tax break until next year.

The city has had to hold off on implementing the tax reduction until state lawmakers finalized a new rule allowing localities to set up a lower tax rate for energy-efficient structures. And it is too late to have those tax breaks start before 2009.

“We are waiting to get the state fixes and that’s why nothing has been done,” Gary O’Connell, the city manager, said.

Under the original bill, a building had to be 30 percent more energy-efficient than the standards in the state building code to qualify for the lower tax bracket. This session the General Assembly expanded the criteria, which should enable more property owners to take advantage of the tax break.

The new rule allows properties that meet a less stringent standard to still qualify for the tax break.

“Hopefully, it will improve the program and opportunities for property owners,” said Kristel Riddervold, the city’s environmental administrator.

Officials hope that the lure of a hefty tax break will spur residents to make their homes and businesses more environmentally friendly. But renovations to improve energy efficiency - such as increasing insulation, sealing ducts and installing double-pane windows - can be expensive.

Riddervold expects that dozens of city homes and businesses will be able to meet the energy-efficiency standards. To receive the tax credit, a property owner would have to receive certification from an inspector and then pass that along to a city building code official.

The City Council likely will not approve the tax break ordinance until this summer, Riddervold said.

“There’s certainly not a lack of support for it, it’s just that there is a lot of other stuff competing” for staff and council’s time, she added.

Environmental activists have lauded the city for exploring ways to motivate people to make their homes energy efficient. But some are disappointed that the city has not been able to enact the tax reduction for 2008.

“I’d like to see it kick in as soon as possible,” said Jason Halbert, a member of Charlottesville’s resident environmental sustainability committee.

Halbert added that he would like the city to create a two-tiered tax break system, with a higher reduction for the most energy-efficient homes.

Not everyone is thrilled with the idea of giving property owners of energy-efficient homes a 50 percent tax reduction. Colette Hall, head of the North Downtown Neighborhood Association, said she understood the goal of the tax break but thought the amount is too high.

“If they want to give a break, I can agree to that, but [50 percent] - that is astronomically unfair,” Hall said. “Those who can’t afford to retrofit their homes are again going to bear more of the burden.”" (Seth Rosen, The Daily Progress, March 22, 2008)