Industrial & Commercial Abatement Program (ICAP)

This program provides abatements for property taxes for periods of up to 25 years. To be eligible, industrial and commercial buildings must be built, modernized, expanded, or otherwise physically improved. ICAP replaced the Industrial Commercial Exemption Program (ICIP) which ended in 2008. Previously approved ICIP benefits were not affected.

Applicants that successfully submitted their preliminary application within the required timeframe can use the combined Final ICIP/ICAP application below.

Requirements

  • Location
    • New Commercial Construction can be anywhere in the City except in some parts of Manhattan- The area south of 96th Street (including the south side 96th Street) and north of Murray, Frankfort, and Dover Streets does not qualify.
    • Commercial Renovations can be anywhere in the City except in some parts of Manhattan- Areas that do not qualify: between 59th Street and 96th Street (including north side of 59th street and south side of 96th street). Below 59th Street, specific commercial Renovation benefits are available and additional benefits are provided in:
      • Garment Center District.
      • Lower Manhattan in the area between Murray Street, Battery Place, South Street and West Street.
  • Improvements
    • You must spend at least 30% of the property’s Taxable Assessed Value no later than four years from the date the building permit was first issued or from the start of construction if no permit is required.
    • Industrial construction projects that spend 40% of the Taxable Assessed Value receive additional benefits.
    • Construction must be completed no later than five years from the date of issuance of the first building permit, or if no permit is required, from the start of construction.

Limitations on Eligibility

  • 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. 

How to Apply

  1. File an ICAP Preliminary Application
  2. After you submit the ICAP Preliminary Application you must get a building permit – you will not receive benefits if you get your permit before filing a Preliminary Application. If no building permit is required for the construction, you must submit a notarized letter from the project's architect or engineer notifying Finance within thirty calendar days of the end of construction.
  3. File all required annual Income and Expense Statements (RPIEs) for the property.
  4. Report all current construction to Finance semi-annually. This is required during the entire construction or renovation period until completion.

Renewals
If an abatement is granted, you must renew your benefit every other year on the form that we mail you in the fall.

Benefit Schedules
Please follow the link below to find your approximate estimated benefit length and dollar amounts:
ICAP Benefit Schedule 

Deadlines
ICAP is now accepting preliminary applications. 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. If you file the Final Application later than one year after the building permit was issued or construction started you will automatically be denied.

Forms


Contact Information

Email
for program policy and eligibility questions
for application status