CEP Provisions for Industrial and Manufacturing Tenants with Leases Commencing On or After July 1, 2005
Commercial Expansion Program (CEP)
Eligibility
The lease must be for a term of not less than 3 years and must begin on or after July 1, 2005 but not later than June 30, 2010. Individual condominium units in eligible buildings are considered separate eligible buildings. Improvements to the premises are required. Premises must be used or occupied for industrial or manufacturing activities, which do not include waste management or utility services. Premises occupied for retail, hotel, or residential purposes are not eligible.
Abatement Zone
The premises must be in a nonresidential or mixed-use building in the designated abatement zone. The abatement zone is defined as any area that is zoned C4, C5, C6, M1, M2, or M3 in the Bronx, Brooklyn, Queens, or Staten Island, and in Manhattan north of 96th Street, as well as a Special Garment Center District, as follows:
- West 35th Street to West 38th Street from Broadway to 7th Avenue;
- West 35th Street to West 40th Street from 7th Avenue to 8th Avenue;
- West 35th Street to West 39th Street from 8th Avenue to 100 feet east of 9th Avenue; and
- The north half of the block bounded by West 34th Street, West 35th Street, 7th Avenue, and 8th Avenue.
Requirements
A completed Commercial Expansion Program application, with Proof of Expenditure and Proof of Employment forms, and a $500 application fee (in the form of a money order or certified check) must be submitted within 180 days of the lease commencement date. This is a statutorily required period, and application after the 180th day will result in a denial of CEP benefits.
New and Expansion Leases
Minimum expenditures of $2.50 per square foot are required for all new and expansion leases.
Renewal Leases
A renewal lease for space previously occupied by the same tenant requires a minimum expenditure of $5 per square foot. When a renewal lease includes additional space that was not previously occupied by the tenant, the minimum expenditure for that additional space is $2.50 per square foot.
Common area expenditures are only acceptable if work begins and expenditures are made between July 1, 2005 and December 31, 2010, provided that expenditures on improvements to the common areas of an eligible building that were made prior to three years before the lease commencement date are not included.
After CEP benefits have been granted, each tenant must file a Certificate of Continuing Eligibility between June 1st and June 30th of each year that the abatement is in effect. This form will no longer be mailed to tenants. Each tenant must download and print a Certificate of Continuing Eligibility from this web page, complete it, and mail it to NYC Department of Finance, Attn: CEP, 66 John Street - 13th floor, New York, NY 10038 so that Finance receives it by the June 30th deadline.
Level of Benefit
The benefit period may not exceed 10 years. The abatement base will equal the tax liability per square foot, but will not be greater than $2.50 per square foot, for the entire benefit period.
Forms
Commercial and Industrial/Manufacturing Expansion Programs Application
(includes Proofs of Employment and Expenditures forms)
Download Form (77.1k)
Certificate of Continuing Eligibility for Real Estate Tax Abatement and Commercial Rent Tax Special Reduction
Download Form (23k)
Deadline
By law, CEP applications must be filed within 180 days of the lease commencement. Applications received after the 180th day will be denied.
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