Lower Manhattan Relocation and Employment Assistance for Eligible Businesses (LMREAP-EB)
Eligible Lower Manhattan Area
Definition of "Relocation"
Eligible Premises
Eligible Businesses
Level of Benefit
Forms & Publications
Deadlines
Contact Information
Additional Information
Eligible Lower Manhattan Area
The eligible area for purposes of LMREAP-EB is the area lying south of a line running from the intersection of the Hudson River with the Holland Tunnel; running north along West Street to the intersection of Clarkson Street to the intersection of Washington Street; running south along the centerline of Washington Street to the intersection of West Houston Street; and east along the centerline of West Houston Street at the intersection of the Avenue of the Americas, continuing east along the centerline of East Houston Street to the easterly bank of the East River.
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Definition of "Relocation"
For the purposes of LMREAP-EB, a relocation must occur after June 30, 2003 and may consist of the transfer of pre-existing business operations to eligible premises or the establishment of a new business operation at eligible premises. Subsequent move to new or additional premises within the 12-year benefit period are also permitted.
The eligible business must move at least one employee from premises located outside the City to eligible premises within the eligible area described above.
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Premises Eligibility and Expenditures for Improvements
The premises must be nonresidential and must have been improved by construction or renovation. The premises must also either (a) be contained in property that meets the following Property Criteria, or (b) meet the following Premises Criteria.
Property Criteria
The property to which the business relocates must be one of the following:
- Eligible for the City's Industrial Commercial Incentive Program (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 in excess of 50% of the assessed value of the property for commercial properties or in excess of 25% of the assessed value for industrial properties.
Premises Criteria
If the premises are leased, the lease term must extend to a date at least three years after (a) the commencement date of the lease or (b) the date of relocation – whichever is later.
Expenditures for improvements: Expenditures must be made on or after July 1, 2003 and must total at least $25 per square foot.
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Eligible Businesses
To qualify for LMREAP-EB, a business must have conducted substantial business operations outside of New York City for at least 24 consecutive months before the year in which it relocates.
A business cannot qualify for LMREAP-EB if it had employees in premises in New York City between January 1, 2002 and the date it enters into a lease or a contract to purchase the premises that will qualify for LMREAP-EB benefit.
Information for businesses that had employees in Manhattan during the period described above
Retail activities and hotel services do not qualify for LMREAP-EB, however, for purposes of LMREAP-EB eligibility, "retail activity" does not include Internet sales and sales by mail or telephone.
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Level of Benefit
LMREAP-EB offers a $3,000 credit per "eligible aggregate employment share" (EAES) per year for twelve years. The number of EAES's is roughly the same as the number of full-time employees working at the eligible premises, subject to some limitations.
The credit may be taken against the NYC General Corporation Tax, the Banking Corporation Tax, the Unincorporated Business Tax, and / or the Utility Tax. These credits are refundable for the year of relocation and the succeeding four years. Unused credits from the seven subsequent years (in the 12-year period) may be carried forward for five years.
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Forms and Publications
Applicants must submit a completed LMREAP-EB (for Eligible Businesses) application and all required supporting documentation. Annual certifications are required to determine the amount of the LMREAP-EB benefit for each of the twelve years.
Lower Manhattan Relocation and Employment Assistance Program for Eligible Businesses (LMREAP-EB) Application for Certificate of Eligibility
Download Form (32k)
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Deadlines
Applications must be submitted before July 1, 2008.
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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
Relocation and Employment Assistance Program (REAP)
LM-REAP Information for Special Eligible Businesses
NYC Economic Development Corporation
NYC Department of Small Business Services
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