Commercial Expansion Program (CEP)
The Commercial Expansion Program (CEP) provides tax abatements for property owners to help increase tenant occupancy in a designated abatement zone. Benefits are offered for qualified New, Renewal, and Expansion Leases on commercial offices and industrial/manufacturing spaces.
The abatement is usually passed through to the tenant as a reduction in rent. However, Finance does not decide how the owner will apply or credit the benefit to the tenant. This is determined between the two parties.
Eligibility
Required Physical Improvements
Initial Application Requirements
Level of Benefit - Including How to View Online
Continuing Eligbility - Annual Filing Requirements
Forms
Contact Us
Eligibility
Lease Term
A minimum 3-year (or more) lease must begin between July 1, 2000, and March 31, 2014. If more than 125 people will be employed, a 10-year lease is required. The premises must be in a designated abatement zone and be classified as a nonresidential or mixed-use building built before January 1, 1999.
Premises occupied or used for retail, hotel, or residential purposes are not eligible.
Abatement Zone
The eligible location is defined as any area in Manhattan north of 96th Street zoned C4, C5, C6, M1, M2, or M3 or any area in the other four boroughs.
Required Physical Improvements
Improvements to common areas of the premises are required. The minimum cost of improvements varies by the type of lease and number of employees.
New Leases with less than 125 employees = $2.50 per square foot of net leasable space.
New Leases with more than 125 employees = $25.00 per square foot of net leasable space and minimum 10-year or more lease.
Renewal Leases with less than 125 employees = $2.50 per square foot of net leasable space.
Renewal Leases with more than 125 employees = $5.00 per square foot of net leasable space.
Expansion Leases with less than 125 employees = $2.50 per square foot of net leasable space.
Expansion Leases with more than 125 employees = $25.00 per square foot of net leasable space.
Renewal and Expansion expenditures must begin three years before the lease end date to be acceptable (July 1, 2000 through December 31, 2014).
Initial Application Requirements
By law, a completed Commercial Expansion Program Application must be submitted within 180 days of the lease start date. CEP benefits will be denied if an application is received after the 180th day. Below is a partial list of the main application requirements. Please consult the current application instructions for other requirements and filing deadlines.
1. Proof of Expenditure form
2. Proof of Employment form
3. $500 application fee (by money order or certified check)
New and Expansion Leases
Applicants must provide evidence of expenditures and the number of employees who are working in the eligible premises. This is due within 60 days of the first required rent payment date.
Renewal Leases
An applicant for a renewal lease must still provide employee proof within 60 days of the first required rent payment date. But in this case, proof of expenditures may be submitted within fourteen months of the first required rent payment date.
Commercial Expansion Program Application
(includes Proofs of Employment and Expenditures forms)
Download Form
Level of Benefits
Three or Four-Year Leases
In the initial year, the tax abatement is equal to the actual property tax liability per square foot or $2.50 per square foot, whichever is less. It is equal to two-thirds the initial amount in year four and one-third in year five.
Leases of Five or More Years
The abatement lasts for five years. In years one and two it is equal to the actual property tax liability per square foot, or $2.50 per square foot, whichever is less. The abatement is equal to two-thirds the initial amount in year four and one-third in year five.
Leases of up to Ten Years (Manufacturing Only)
The abatement lasts for up to ten years depending on the lease. There is no phase out. The same expenditure requirements (see above) as commercial CEP apply and must include a description of the beginning raw materials and final product(s) manufactured.
Once an abatement is granted, the applicant and/or associated representative will receive a Notification of Eligibility. It must be carefully read. Any questions should be immediately addressed. It will include your application number to be used for future reference. Owners and tenants can view current CEP benefits by visiting our web site.
View Benefits Online Benefits Lookup
Go to the link and enter your borough, block and lot numbers. Then choose CRP/CEP Summary of Benefits from the parcel options. Please note this option will not appear if the property has no benefits or data has not yet been entered in our system.
View Property Information
Continuing Eligibility - Annual Filing Requirements
After CEP benefits have been granted, each tenant who wishes to maintain the program must file a Certificate of Continuing Eligibility between June 1st and June 30th of each year the abatement is in effect.
A Certificate of Continuing Eligibility form can only be obtained by download from our web site. It will no longer be automatically mailed. Please print a copy, complete and mail to:
NYC Department of Finance, Attn: CEP
59 Maiden Lane, 22nd Floor
New York, NY 10038
Forms
Certificate of Continuing Eligibility for Real Estate Tax Abatement
Download Form
Contact Us
E-mail Commercial Tax Reductions application status
E-mail Commercial Tax Reductions eligibility and policy
