Commercial Tax Reduction Programs
The City and State of New York offer a number of Commercial Tax Exemption and Abatement Programs to qualified property owners.
Commercial Construction Exemptions and Abatements
The following Commercial Benefit Programs can reduce the taxable assessed value of a property:
Commercial Expansion Program (CEP)
Promotes the development of commercial and industrial areas outside of Manhattan's central business districts.
Commercial Revitalization Program (CRP)
Encourages investment in older commercial space or conversion to residential use. It was enacted to increase tenant occupancy in office and retail space in lower Manhattan and other areas of the City.
Division of Alternative Management Program (DAMP)
Encourages community growth by returning City-owned properties to private owners.
Green Roof Tax Abatement
State law allows tax abatements for "Green Roofs". The tax abatement is equal to $4.50 per square foot of green roof space. The maximum benefit of the abatement is $100,000 or the tax liability of the eligible building – whichever is less. Condominium abatements are apportioned to the individual condominium units. Properties cannot receive both the green roof abatement and any of the following benefits: the ICAP abatement; 421-g; 421-a or 421-b while paying only the statutory minimum tax under these statutes; and properties that pay PILOTs. Applications must be filed by March 15th. Abatements are for one year beginning the July 1 that follows Department of Buildings approval.
NYC Department of Buildings Green Roof Fact Sheet
NYC Department of Buildings Green Roof Abatement
Form & Instructions
Industrial and Commercial Abatement Program (ICAP) (Replaces ICIP)
Provides abatements of real property taxes for varying periods up to 25 years for eligible industrial and commercial buildings.
Lower Manhattan Relocation and Employment Assistance for Eligible Businesses (LMREAP-EB)
Offers eligible businesses income tax reduction incentives for moving to certain lower Manhattan areas from outside of New York City.
Lower Manhattan Relocation and Employment Assistance for Special Eligible Businesses (LMREAP-SEB)
Created to extend LMREAP business income tax incentives to businesses with existing lower Manhattan employees. The company must move at least 250 employees from outside NYC, or a large number of staff to increase its payroll in the City by 25%, (whichever is fewer).
Relocation and Employment Assistance Program (REAP)
The Relocation and Employment Assistance Program (REAP) encourages businesses to relocate from outside the City and from below 96th Street in Manhattan to above 96th Street in Manhattan or to one of the other four boroughs. REAP offers business income tax credit for moving to one of these areas. The tax credits are based on the number of qualified jobs at the relocation.
Solar Electric Generating Systems Tax Abatement
State law allows tax abatements for installing solar electric generating systems in class 1-, 2- & 4- properties. When the Solar Electric Generating System (SEGS) abatement is applied for prior to January 1, 2011it may equal 8.75% of eligible SEGS expenditures; the amount of property taxes payable for the year; or $62,500– whichever is least. If applied for between January 1, 2011 and December 31, 2011 the abatement may equal 5% of eligible SEGS expenditures; the amount of property taxes payable for the year; or $62,500– whichever is less. Condominium abatements are apportioned to the individual units. Properties receiving the ICAP abatement; 421-g benefits; 421-a or 421-b benefits while paying only the minimum tax under these statutes; or those paying PILOTs, are ineligible for the SEGS tax abatement. Applications must be filed by March 15. The abatement’s four-year period starts on the July 1st following Department of Buildings approval.
NYC Department of Buildings Solar Electric Fact Sheet
NYC Department of Buildings Solar Panel Abatement Form
Urban Development Action Area Program (UDAAP)
Designed to encourage the construction in certain areas, of residential housing on land formerly owned by the city.
Additional Information
Individual Residential Property Exemptions and Abatements
Industrial, Governmental or Not-For-Profit
Find Property Tax Benefit Information
