Relocation And Employment Assistance (REAP)
Eligible Area
Definition of "Relocation"
Eligible Premises
Eligible Businesses
Level of Benefit
Mayoral Discretion
Forms & Publications
Deadlines
Contact Information
Additional Information
Eligible Area
To qualify for REAP, an eligible business must relocate from outside New York City or from below 96th Street in Manhattan to the eligible area, which consists of above 96th Street in Manhattan or to any of the other four boroughs – Brooklyn, the Bronx, Queens, or Staten Island.
Within the eligible area is a designated
revitalization zone which consists of parts of the area designated by the City as C4, C5, C6, M1, M2, or M3.
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Definition of "Relocation"
For the purposes of REAP eligibility, a relocation may consist of the transfer of pre-existing business operations to eligible premises or the establishment of new business operations at eligible premises. The eligible business must move at least one employee from premises outside the eligible area to eligible premises within the eligible area.
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Eligible Premises
A business must relocate to premises that are nonresidential and that have been improved by construction or renovation. In addition, relocation premises for relocations after July 1, 2003 must either (a) be contained in property that meets the following Property Criteria or (b) meet the Premises Criteria. Relocations that occurred before July 1, 2003 must meet the Property Criteria.
Property Criteria
The property to which the business relocates must be one of the following:
- Eligible for the City's Industrial and Commercial Abatement Program (ICAP) (Replaces ICIP);
- Leased from the New York City Industrial Development
Agency;
- Owned by the City; or
- Leased from the Port Authority or New York State Urban Development Corporation.
Expenditures for improvements: Expenditures must be made for improvements to the property in excess of 50% of the assessed value of the property for commercial property or in excess of 25% of the assessed value for industrial property.
Premises Criteria
If the premises are leased, the lease term must extend to a date that is at least three years after the date that the lease commenced or the date of relocation, whichever is later.
Expenditures for Improvements: Expenditures of at least $25 per square foot must be made on or after July 1, 2003 for improvements to the premises.
Lower Manhattan REAP for Eligible Businesses
Lower Manhattan REAP for Special Eligible Businesses
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Eligible of Businesses
To qualify for REAP, businesses must have conducted substantial business operations either outside New York City or below 96th Street in Manhattan for at least 24 consecutive months prior to the year in which it relocates to the eligible area (above 96th Street in Manhattan or any of the other four boroughs).
Retail activities and hotel services do not qualify for REAP. For purposes of REAP eligibility, "retail activity" does not include Internet sales and sales by mail or telephone.
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Level of Benefit
REAP offers the following tax credits:
- A credit of $3,000 per "eligible aggregate employment
share" (EAES) per year, for twelve years, for relocations to the
"revitalization zone," or
- A credit of $1,000 per share, per year, for relocation to those parts of the eligible area outside the revitalization zone.
The credit may be taken against the NYC General Corporation Tax, Bank Tax, Unincorporated Business Tax, and / or the Utility Tax. Credits are refundable for the year of relocation and the succeeding four years. Unused credits from subsequent years may be carried forward for five years.
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Mayoral Discretion
Although relocations from lower Manhattan to the eligible areas qualify for REAP, the Mayor has discretion to limit REAP benefits for businesses that reduce their payroll in lower Manhattan to relocate elsewhere. For relocations from lower Manhattan before July 1, 2005, the Mayor may only limit REAP benefits to businesses that reduce staff in lower Manhattan by more than 100 employees.
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Forms & Publications
Applicants must submit a completed REAP application and all required supporting documentation. Annual certifications are required to determine the amount of REAP benefit for each of the twelve years.
REAP Application for Certificate of Eligibility for Benefits
Download Form (81k)
REAP-ADD Application for Certificate of Eligibility of Designated Additional or Replacement Premises
Download Form (44k)
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Deadlines
Applications must be submitted before June 30, 2013.
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Contact Information
For program policy and eligibility questions:
Email Commercial Exemptions Policy
To check the status of a previously submitted application:
Email Commercial Exemptions Application Status
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Additional Information
Lower Manhattan REAP for Eligible Businesses
Lower Manhattan REAP for Special Eligible Businesses
NYC Economic Development Corporation
NYC Department of Small Business Services
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