Industrial And Commercial Abatement Program (ICAP)

ICAP legislation that expired on March 1, 2011 was extended on May 18, 2011 and remains in effect until March 1, 2015.

Please note: The Industrial and Commercial Exemption Program (ICIP) ended in 2008 and was replaced with ICAP. Previously approved ICIP benefits were not affected. Applicants that successfully submitted their preliminary application within the ICIP timeframe can use the combined Final ICIP/ICAP application which you can link to on this page.

Otherwise, all documents and information below are in reference to ICAP unless specifically noted.

ICAP provides abatements for real property taxes for varying periods up to 25 years. Eligible industrial and commercial buildings must be built, modernized, expanded, or otherwise physically improved.

One of the most important things to note regarding the application process for an ICAP benefit is that the final application must be filed no later than one year after the effective date of eligibility. The effective date of eligibility is the date of the first building permit that allowed construction to proceed, or if no permit is required, no later than one year from the date that construction started. Construction does not need to be complete to submit a final application, so there are no exceptions. If a final application is submitted after one year, the application will be automatically denied.

Eligibility
Filing Requirements
Deadlines
Forms & Applications
2011/2012 ICIP Exempt Properties
Contact Information
Additional Information

Eligibility

Location
To be eligible for commercial New Construction benefits, an applicant may build anywhere in New York City except in Manhattan, south of the centerline of 96th Street and north of Murray, Frankfort, and Dover Streets.

To be eligible for benefits for commercial Renovation, applicant must expand, modernize, or improve an existing structure anywhere in the City.  Excluded is the area in Manhattan, between the centerline of 59th Street and the centerline of 96th Street.

Below 59th Street, specific commercial Renovation benefits are available in three areas:

• Garment Center District
• an area in lower Manhattan bounded generally by Murray Street, South Street, Battery Place and West Street; and
• the remainder of Manhattan below 59th Street.

Expenditures
Applicants must make a minimum required expenditure (MRE) equal to at least 30 percent of the Taxable Assessed Value of the property in the year the building permit was first issued or, if no permit is required, at the start of construction.

ICAP also provides an additional tax abatement benefit for industrial construction projects that meet a higher MRE (40 percent).

The MRE must be made no later than four years from the date the building permit was first issued. However, if no permit is required, the MRE must be made from the start of construction.

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Filing Requirements

Applicants are required to:

• File both a (1) Preliminary and (2) Final Application for Certificate of Eligibility. 
• Obtain a Building Permit

• A Preliminary Application must first be submitted before obtaining a building permit.
  
  Note: You will NOT receive benefits if you get your permit before filing an
  ICAP Application.
   
• If no building permit is required for the construction, applicant must submit a notarized
  letter from the project's architect or engineer notifying the Department within thirty calendar days of the end of construction.

• Submit a Final Application for benefits no later than one year from the date the first building permit was issued for construction work.  If construction work does not require a building permit, filing must be within one year from the starting date of  construction. 
• File all required annual Income and Expense Statements (RPIEs) for the property.
• Report all current construction to Finance semi-annually. This is required during the entire construction or renovation period until completion. 

Limitations on Eligibility for Certain Types of Property 

• Utilities: As of May 18, 2011, benefits are available for electricity generating units defined as “Peaking Units.” Benefits are not available for any other utility property.
• Retail: A property may be subject to different abatement schedules based on the percentage used for retail.  

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Benefit Schedules

Deadlines
The ICAP is now accepting Preliminary applications, effective May 18, 2011. The Final Application must be filed within one year from the building permit issuance date, or if no permit is required, within one year from the start date of construction.
 
Under the law, Final ICAP applications filed after one year from issuance of building permit or commencement of construction must automatically be denied.

Forms & Applications

Preliminary ICAP Application and Instructions
 Download Application 

Final ICIP/ICAP Application
 Download Application 

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2011/2012 ICIP Exempt Properties (Descriptive Data as of Final Roll 11/12) (Building Class Data as of Final Roll 11/12)	Adobe PDF	MS Excel
Manhattan	51k	81k
Bronx	62k	206k
Brooklyn	51k	572k
Queens	53k	501k
Staten Island	49k	164k

Contact Information
For program policy and eligibility questions, contact
Email ICAP Program

For application status, contact
Email ICAP Program

Additional Information 
Transition from ICIP to the New ICAP Program

Other Resources
NYC Economic Development Corporation
NYC Department of Small Business Services