Industrial And Commercial Incentive Program (ICIP)

The ICIP Program has been extended until June 30, 2008.

This program provides a partial exemption from or abatement of property taxes for varying periods of up to 25 years for eligible industrial and commercial buildings that are built, modernized, rehabilitated, expanded, or otherwise physically improved. Eligibility for ICIP benefits may also allow a participant to receive reduced energy rates through programs administered by the NYC Department of Business Services.

NEW NOTE FOR CCU FILERS 12/14/07
Certificates of Continuing Use (CCU's) will not be required for submission for the 2008/09 Tax Year.

Eligibility
Requirements
Level of Benefit
Exemption Calculations
Geographical Boundaries
Forms and Publications
Deadlines
Background/History of Program
Contact Information
Additional Information

Eligibility

Location
To be eligible for benefits for commercial new construction, 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 may be expanding, modernizing, or otherwise improving an existing structure anywhere in the City except in Manhattan, between the centerline of 59th Street and the centerline of 96th Street.

Expenditures
Applicants must meet minimum required expenditure (MRE) targets. The MRE is a percentage of assessed value of the project in the year of the issuance of the building permit or, if no permit is required, the start of construction.

Industrial projects must meet a 10 percent MRE threshold to be granted an exemption. Industrial projects that meet the 25 percent MRE threshold will also be eligible for a tax abatement.

Commercial projects require a 10 percent MRE threshold, except for commercial renovation projects in Manhattan, south of 59th Street, which require a 20% MRE.

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Requirements

• Applicant must submit two ICIP applications – a Preliminary Application for Certificate of Eligibility and a Final one.
• Applicant must first submit Preliminary Application before obtaining a building permit or beginning construction.
• Applicant must notify the ICIP Unit, in writing, 15 business days before beginning construction or renovation.
• Applicant must notify the Division of Labor Services 15 business days before beginning work and submit an Employment Report for projects with construction contracts in excess of two and a half million dollars.
• Once the applicant receives the building permit (if one is required), applicant must file the Final ICIP Application.
• Interim construction reports must be submitted to Finance semi-annually throughout the duration of the construction or renovation.

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Level of Benefit

Commercial Projects
Commercial projects receive a full exemption on the increase in assessed value attributable to the improvements made for 11 years, followed by 4 years of exemption declining 20 percent per year.

Commercial project in designated special exemption areas (see below) receive a full exemption for 16 years, with the exemption declining by 10 percent annually for the next 9 years.

Industrial Projects
Industrial projects receive a full exemption for 16 years, with the exemption declining by 10 percent annually for the next 9 years.

Industrial projects may also be eligible for a partial tax abatement based on the real estate taxes levied in the year prior to commencement of construction. For the first 4 years, the abatement equals 50 percent of the property tax, followed by 8 years in which the abatement declines by 10 percent every 2 years.

You can now search for properties with ICIP exemptions. Below is a detailed listing of properties by borough, neighborhood, building class, tax class, block and lot number, and address.

 

2007/2008 ICIP Exempt Properties (Descriptive Data as of 12/21/07) (Building Class Data as of 12/24/07)	Adobe PDF	MS Excel
Manhattan	56k	188k
Bronx	60k	178k
Brooklyn	126k	412k
Queens	119k	400k
Staten Island	44k	127k

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Exemption Calculations
An exemption is granted on that portion of a property’s assessed valuation known as the exemption base. The exemption base for each year is limited to the increase in assessed valuation solely attributable to improvements made to the commercial or industrial property.

All industrial projects receive 25-year exemptions – 16 years at full exemption, with 9 years of an exemption that declines by 10 percent per year. There are three kinds of exemptions for commercial projects:

• Special - Commercial construction work performed in special exemption areas receives the same exemptions as industrial projects.
• Regular - Commercial construction work performed in regular exemption areas receives a full exemption on the exemption base for 11 years, followed by 4 years of an exemption that declines by 20 percent per year. Full taxes are due in the 16th year.
• Renovation - Commercial construction work performed in a renovation area receives a full exemption on the exemption base for 8 years, followed by 4 years of an exemption that declines by 20% per year. Full taxes are due in the 12th year.

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Geographical Boundaries
ICIP geographical boundaries are determined by three different entities:

ICIP Legislation
Established that project benefits are available Citywide with two exceptions: (a) No commercial new construction benefits allowed in Manhattan south of 96th Street and north of Murray, Frankfort, and Dover Streets; and (b) No commercial renovation benefits available in Manhattan north of 59th Street and south of 96th Street.

Industrial and Commercial Incentive Board
Established benefits for projects located north of 96th Street in Manhattan and in the other four boroughs, and identified “special areas” which receive extended benefits.

New York State Empire Zones
Created to stimulate growth in New York State’s economically distressed areas. An Empire Zone is an area that is characterized by pervasive poverty, high unemployment, and general economic distress. If one of these areas happens to be in New York City, the property is eligible for the same exemption benefits as properties in ICIP special areas (see #2 above). These include Hunts Point and Port Morris in the Bronx; East, North, and Southwest Brooklyn; East Harlem; Far Rockaway and South Jamaica in Queens; and North Shore and West Shore on Staten Island.

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Forms & Publications

Preliminary ICIP Application
Download Application (78.3k)

Final ICIP Application
Download Application (63k)

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Deadlines
The Preliminary Application must be filed before obtaining a building permit, or, if no permit is required, before starting construction. Under current law, ICIP applications filed after construction commencement or building-permit issuance must automatically be denied.

The Final Application is filed after the building permit is received and the work begins.

Certificates of Continuing Use (CCU's) will not be required for submission for the 2007/08 Tax Year.

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Background/History of Tax
Created through Local Law No. 71 in November 1984, the ICIP program is due to expire on June 30, 2008.

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

For application status, contact
Email ICIP Program

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Additional Information
NYC Economic Development Corporation
NYC Department of Small Business Services