New Bill Offers Tax Incentives for Office Tenants and Developers in Lower Manhattan

It’s no secret that living, much less building, in New York City is no cheap affair. So how are city and other government officials convincing developers to build commercial space in Manhattan? Well, Governor Cuomo has signed a bill that extended tax incentives for office tenants and developers in Lower Manhattan.

The Programs

The Commercial Revitalization Program (CRP)

This program includes tax break incentives that encourage investments to be made in buildings with commercial tenants — everything from office leases to small businesses. It offers a $2.50 per square foot tax abatement for tenants who relocate to buildings built before 1975 that are located south of Murray Street, west of South Street, and east of West Street. Tenants can take advantage of this program for five years if they sign leases before March 31, 2021.

The Industrial and Commercial Abatement Program (ICAP)

The ICAP offers developers 25 years of partial tax breaks for making renovation to industrial and commercial buildings south of Murray Street. In order to qualify for the program, commercial developers must spend a minimum 30% of the structure’s value on improvements.

The Sales Tax Exemption Program (STE)

This program provides exemptions for goods purchased for building in Brookfield Place, World Trade Center, and Battery Park City, provided the leases last for at least 10 years.

The Lower Manhattan Relocation Employment Assistance Program (LM-REAP)

Ths program gives companies a $3,000 tax credit per employee that they move into New York City. Since its inception, it has been used by Pearson when they moved and expanded to 300 Hudson Street.

The Lower Manhattan Energy Program (LMEP)

The last program of this new bill, the LMEP gives property owners as high as a 45% discount on their energy bill, as well as gives them the opportunity to meet requirements of the ICAP.

These incentive programs are being put into place in order to enable developers to attract marquee tenants even though rental asking prices have reached an all-time high in NYC. For more NYC building updates, follow us on Facebook and Twitter!

We are your source for structural inspections, mechanical inspections, civil inspections, and architectural inspections in New York and the entire metropolitan area. With over 50 years of experience, we are known for both our high standards and specialized services. We have supported the work of some of the largest and most prestigious developers, retailers and more. Call us today at 212.867.6720 or visit our website for more information.