Lower Manhattan Relocation and Employment Assistance for Eligible Businesses (LMREAP-EB)
Description and Benefits
Eligible Businesses
Other REAP Programs
Eligible Relocation Area In Lower Manhattan
Definition of Relocation
Premise Eligibility and Expenditures
Forms & Publications
Deadlines
Contact Information
Description and Benefits
A business must relocate to premises in the qualifying area in lower Manhattan to be eligible for this program.
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 location. There are some limitations.
The credit may be taken against:
- NYC General Corporation Tax (GCT)
- Banking Corporation Tax (BCT)
- Unincorporated Business Tax (UBT), and/or
- Utility Tax
These credits are refundable for the year of relocation and the following four years. Unused credits from the next seven years (in the 12-year period) may be carried forward for five years.
Eligible Businesses
To qualify a company must have conducted significant business operations outside of New York City for at least 24 consecutive months before the year in which it relocates.
A business cannot qualify if it had employees working in New York City between January 1, 2002 and the date it enters into the program.
Other REAP Programs
LMREAP-SEB (Special Eligible Businesses) may be available to businesses not qualifying for LMREAP-EB because they had employees in Manhattan before the relocation.
Hotel services do not qualify for LMREAP-EB. Most retail activities are not eligible, except for sales by internet, mail or telephone.
Information for businesses that had employees in Manhattan 
during the period described above
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Eligible Relocation Area In Lower Manhattan
The eligible area for purposes of LMREAP-EB lies 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, then at the intersection of the Avenue of the Americas the line continues east along the centerline of East Houston Street to the easterly bank of the East River.
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DEFINITION OF RELOCATION
A relocation must occur after June 30, 2003. The eligible business may transfer an existing business operation or setup a new one.
The eligible business must move at least one employee from outside of New York City to premises within the area described above.
A move to new or additional eligible premises within the 12-year benefit period is permitted.
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Premises Eligibility and Expenditures for Improvements
The premises must be nonresidential and have been improved by construction or renovation.
Eligible expenditures must satisfy either (1) the Property Criteria or (2) Premises Criteria:
Property Criteria
The Property in which the premises are relocated must be one of the following:
- Eligible for the Industrial and
Commercial Incentive Program (ICIP) (Please note that Industrial
and Commercial Abatement Program (ICAP), which replaced the now expired
ICIP, does not provide for REAP eligibility.);
- 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 must be in excess of:
- 50% of the assessed value of the property for
commercial properties or
- 25% of the assessed value for industrial properties.
Premises Criteria
Expenditures for improvements must be made on or after July 1, 2003 and must total at least $25 per square foot.
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.
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Forms and Publications
Applicants must submit a completed LMREAP-EB (Eligible Businesses) application and all required documents. 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 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
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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