Relocation and Employment Assistance (REAP)
Credit REAP provides New York City business tax credits to taxpayers that relocate jobs from outside of New York City, or below 96th Street in Manhattan, to a qualified premises in one of New York City’s outer boroughs or above 96th Street in Manhattan. As long as 1 employee is relocated and transferred to an eligible premises, the credit is available for any new jobs created at that premises as well as any jobs that are subsequently transferred to that premises. Hotel and retail operations are not eligible for the credit. Qualified taxpayers may receive a credit up to $3,000 per eligible employee per year for twelve years, which can total $36,000 per employee. The credit is refundable as cash for the first five years, including the year of relocation.
Industrial and Commercial Abatement Program (ICAP)
ICAP provides a property tax abatement for newly built or renovated industrial and commercial buildings located anywhere in New York City, except in certain areas of Manhattan. To qualify, applicants must make capital improvements equal to at least 30% of the property’s taxable assessed value in the year of issuance of the building permit or, if no permit is required, the start of construction within four years. The benefit period ranges from eight to twenty-five years depending on the location of the project and the type of work being performed. The abatement received for properties with retail space may be limited depending on the percentage of retail space. The preliminary application must be filed prior to issuance of a building permit, or if no permit is required, prior to the start of construction.
Commercial Expansion Program (CEP)
CEP provides qualified industrial/manufacturing and commercial tenants located in eligible Manhattan areas north of 96th Street and anywhere in the other four boroughs with a property tax abatement for either three or five years depending on the term of the lease. The benefit is equal to the lesser of the property tax liability or $2.50 per square foot with a one-third decrease in the last two years of benefit for commercial properties. For manufacturing facilities with a lease term of at least five years, the benefit is equal to the lesser of the property tax liability or $2.50 per square foot for all five benefit years. An application must be filed with the New York City Department of Finance within 180 days of lease commencement.
Energy Cost Savings Program (ECSP)
The ECSP reduces energy costs for eligible manufacturing and commercial businesses that relocate to and make improvements to property in, or lease previously improved buildings in Manhattan above 96th Street or anywhere in the other four boroughs. The benefit can reduce regulated energy costs up to 45% and regulated natural gas costs up to 35% for eligible businesses for twelve years. The deadline for filing the application with New York City Department of Small Business Services varies depending on the applicant’s basis for qualification.