The Lower Manhattan Commercial Revitalization Program (LMCRP) provides property tax abatements for qualified tenants with new, renewal or expansion leases in pre-1975 commercial and mixed-use buildings located south of Murray St. in Lower Manhattan. The benefit equals a savings of up to $2.50 psf and extends for 5 years with a phase out in years 4 and 5 equal to 2/3 and 1/3 of the initial abatement. The program requires an initial filing fee and annual renewal applications. Specific qualifying criteria must be met in regard to capital improvements. Strict statutory deadlines must be adhered to in order to be approved for and receive benefit.
The Commercial Expansion Program (CEP) provides property tax abatements for new, renewal, and expansion leases for commercial offices and industrial spaces to increase tenant occupancy in the designated abatement zones north of 96th St. in Manhattan as well as the outer boroughs. The benefit equals a savings of up to $2.50 psf and extends for 5 years with a phase out in years 4 and 5 equal to 2/3 and 1/3 of the initial abatement. The program requires an initial filing fee and annual renewal applications. Specific qualifying criteria must be met in regard to capital improvements. Strict statutory deadlines must be adhered to in order to be approved for and receive benefit.
The Commercial Rent Tax (CRT) program provides a 3.9% tax savings for tenants located south of Murray St.in pre-1975 buildings in Lower Manhattan that have annual commercial rent expenses over $250,000. The benefits extend for 5 years and require the preparation of quarterly tax filings with the NYC Department of Finance throughout the life of the program.
State and local (City) sales tax exemptions are provided for property and services purchased or used to:
Furnish, equip and/or build-out leased commercial premises at the World Trade Center site, 7 World Trade Center, World Financial Center and Battery Park City, for all leases of at least 10-years, commencing between September 1, 2005 and September 1, 2015.
Build out costs (i.e., property that becomes an integral component part of the building) for leased commercial premises in the area south of Murray Street, for all leases of at least 10-years, commencing between September 1, 2005 and September 1, 2013.
The sales/use tax exemptions are available from the beginning of the lease through the first year of the lease. All eligible items must be installed or delivered no later than 90 days after the end of the first year.
REAP benefits (Relocation and Employment Assistance Program) are available to firms with existing operations in Manhattan that relocate existing, non-New York employees to Lower Manhattan.
Eligible businesses must relocate the lesser of 25% of their total existing New York City workforce or 250 employees from a location outside the City to Lower Manhattan (south of Houston Street) after June 30, 2005.
REAP benefit is a tax credit against New York City business tax equal to $3,000 per eligible job per year, for 12-years.
Credits are available for jobs relocated and also for additional new jobs created in Lower Manhattan during the first five years after the relocation.
LMEP is an energy benefit that reduces regulated electricity costs up to 45 percent to qualified tenants. Benefits last for eight years followed by a four-year phase out.
To determine if your building is eligible, please contact our office at 1-866-254-1309.
