RACE for Space (Relocation Assistance Credit per Employee)

Eligible businesses

To qualify, your business must:

• Have conducted substantial business operations outside the state of New York for 24 consecutive months immediately before the taxable year of relocation.
• Not have had employees working anywhere in the state of New York at any time after January 1, 2025, and before you enter into the lease or contract for the eligible premises.
• On or after July 1, 2025, relocate at least one employee from outside the state of New York to premises located in New York City.

Certain activities are not eligible—for example, most traditional retail sales, personal services, retail banking, and lodging.

Eligible premises

The premises must also meet program requirements. They must be non-residential, located within New York City, and totaling at least 10,000 square feet. For sites in Manhattan, the final certificate of occupancy must have been issued before January 1, 2000. (This restriction does not apply to premises in other boroughs.)

Each eligible employment share is valued at $5,000. The credit is refundable during the relocation year and the following four years. In years six through eleven, the credit may offset your tax liability, though any excess amount cannot be refunded. Unused amounts may still be carried over to the five immediately succeeding tax years.

Credits are capped by your eligible aggregate employment shares, which are defined as the lowest of the shares you maintain in the relocation year, your maximum approved employment shares, or the shares in the current tax year multiplied by the linear scalar. Definitions of these terms appear at the end of the Initial Certification and Annual Certification forms.

Credits are based on eligible aggregate employment shares and can be claimed for the taxable year of the relocation and for any of the ten following taxable years.

The RACE for Space Program is first-come, first-served through June 30, 2028.

1. Preliminary Application: Submit a short pre-application to begin the process by providing basic information about your business.
2. Lease/Contract Submission (within 90 days): Upload an executed lease or contract for eligible space within 90 days of your preliminary eligibility recording date.
3. Review of Premises: DOF confirms that your premises meet RACE for Space requirements.
4. Initial Certification (Certificate of Eligibility): File the Application for Certificate of Eligibility. Approval establishes your maximum approved employment shares and officially places you in the program.
5. Annual Certification: You must file an annual certification showing eligible aggregate employment shares at the certified premises. The value per share is $5,000.
6. Claim the Credit: Report the approved shares on your applicable NYC business tax return and attach the annual certification issued by DOF.
7. Add/Replace Premises (optional): If you move or expand, file the Certificate of Eligibility for Additional or Replacement Premises. Note: premises cannot be certified as additional or replacement if you maintained employment shares there prior to applying for certification.

The fastest way to apply is through e-Services, though you may also apply by mail. Required documents vary at each step. Typical examples include the executed lease or deed (showing terms and square footage), federal tax returns for the two years before the relocation year (for the Initial Certification), and NYS-45 filings with employee compensation data (for the Annual Certification).

• Program application window: through June 30, 2028 (first-come, first-served).
• Lease/contract submission: within 90 days of your preliminary eligibility recording date.
• Annual certification: due each year that you claim the credit (see form instructions).

We have currently allocated 0 of the maximum 3,000 employment shares that will be approved under the RACE for Space Program. (This number will be updated weekly.)

The fastest way to apply is through e-Services, though you may also apply by mail using the forms below.

• Pre-Application: start here to record your intent to relocate.
• Lease Submission: submit your executed lease or purchase contract (due within 90 days of the preliminary eligibility recording date).
• Application for Certificate of Eligibility: for official entry into the program.
• Certificate of Eligibility for Additional or Replacement Premises: to add or replace premises.
• Annual Certification Form: compute and certify eligible aggregate employment shares for the credit year. (This form must be completed online.)

You can use e-Services to submit applications and documents or request assistance.