Lower Manhattan Relocation and Employment Assistance Program for Special Eligible Businesses (LMREAP-SEB)

The Lower Manhattan Relocation and Employment Assistance Program for Special Eligible Businesses (LMREAP-SEB) is available to businesses that do not qualify for LMREAP-EB because they had employees in Manhattan before their relocation.

To apply, the eligible business has to move business operations and employees from outside the city to a qualified location.

Qualified Locations in Lower Manhattan - View Map
The LMREAP-SEB area lies south of a line running from the intersection of the Hudson River with the Holland Tunnel, north along West Street to the intersection of Clarkson Street, east to the intersection of Washington Street, 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, the line continues east along the centerline of East Houston Street to the easterly bank of the East River.


The program offers an annual credit of $3,000 for twelve years per eligible employee, or per eligible aggregate employment share (EAES) for relocating to a designated location. The number of EAESs 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 the following:

  • General corporation tax
  • Banking corporation tax
  • Business corporation tax
  • Unincorporated business tax
  • Utility tax

Credits are refundable for the year of relocation and the next four years. Unused credits from subsequent years may be carried forward for five years.

Special Eligible Business

  • Must have conducted substantial business operations outside of New York City for at least 24 consecutive months immediately preceding the taxable year of relocation
  • Must relocate to eligible premises on or after June 30, 2005
  • Must have had employees in Manhattan between January 1, 2002, and the date it enters into a contract to lease or purchase the relocation site
  • The eligible business must move at least 250 employees or a sufficient number of employees to increase its payroll in the city by 25%.

Most retail activities and hotel services are not eligible. However, internet sales and sales by mail or telephone may be eligible.

Eligible Premises

  • Must be nonresidential
  • Must have been improved by construction or renovation
  • Expenditures for improvements to the property must be more than 50% of the assessed value for commercial properties or more than 25% of the assessed value for industrial properties.
  • Contract or lease must be entered into after June 30, 2005
  • Expenditures for improvements must have been made after June 30, 2005.
  • Eligible premises must satisfy either the property criteria or the premises criteria below:
    • Property Criteria - eligible premises must be located in property that is one of the following:
      • Eligible for the Industrial and Commercial Incentive Program (ICIP)
      • Leased from the New York City Industrial Development Agency
      • Owned by the City of New York
      • Leased from the Port Authority or New York State Urban Development Corporation
      Please note that the Industrial and Commercial Abatement Program (ICAP), which replaced ICIP, does not provide REAP eligibility.
    • Premises Criteria
      • If leased, the term of the lease must be at least three years from the lease start date or the date of relocation, whichever is later.
      • Expenditures for improvements to the premises must be more than $25 per square foot.

Other REAP Programs

LMREAP-EB (Eligible Businesses) may be available to businesses that did not have employees in Manhattan before the relocation.

Forms & Reports

Applicants must submit a completed LMREAP application and all required supporting documentation. Annual certifications are required to determine the amount of LMREAP benefit for each of the twelve years. Please file an application for a certificate of eligibility of designated premises (REAP-ADD) for additional or replacement premises.


Application deadline was extended to June 30, 2017. You must file for annual re-certification for each eligible year.

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