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New Downtown Incentives
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Commerical Rent Tax Exemption |
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Exemption from Sales and Use Taxes |
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World Trade Center and 7 World Trade Incentives |
| Permanently eliminates the tax for all tenants at the World Trade Center site plus 7 World Trade and 130 Liberty Street |
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Sales tax exemptions for office furniture, equipment and build-out costs for commercial businesses that lease space at WTC, 7 World Trade and Battery Park City |
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$5-per-sf annual incentive for the first 750,000 sf of commercial space leased at the WTC site |
| Permanently eliminates the tax for all retail tenants in the area south of Murray Street between South and West Streets |
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Sales tax exemption for build-out costs to businesses in the area south of Murray Street between South and West Streets |
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$3.80-per-sf annual incentive for the first 750,000 sf of commercial space leased at 7 World Trade |
| Five-year tax exemption for businesses elsewhere south of Canal Street, up to an amount tied to your base rent. |
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Lease Requirements: Leases must be direct leases, at least 5 years, and commence between 7/1/05 and 6/30/09 for tax eliminations and 9/1/05 and 9/1/11 for sales tax incentives. |
Lower Manhattan Relocation Employment Assistance Program
Businesses with operations in Manhattan that relocate employees from locations outside of New York City to Lower Manhattan
(south of Houston St) will now be eligible for the 12-year $3,000 per employee tax credit for those relocated employees.
Leases of three years or more must commence and leasehold improvements of at least $25 per square foot must be completed after 6/30/05; or building-wide improvements equal in cost to 50% or more of the building assessed value must be completed.
The job increase attributable to new employees from outside New York City must be at least 25% of the existing New York City job base or 250, whichever is less.
Firms may also receive tax credits for additional jobs created in Lower Manhattan during the first five years of their lease that are either new hires or relocated from outside New York City.
To be eligible the relocated employee must work for at least ten weeks in the location outside of New York City and for at least ten weeks in Lower Manhattan.
For businesses moving from Lower Manhattan to the outer boroughs, they will continue to receive REAP benefits at the discretion of the Mayor.
Lower Manhattan Economic Revitalization Plan
Requirements:
- Pre 1975 Building
- Lease must commence between 4/1/95 - 3/31/07
- Must relocate from within Manhattan, south of 96th Street
- Minimum lease term for large tenants (more than 125 employees) is 10 years and small tenants (fewer than 125 employees) is 5 years
- Minimum required investment to the tenant's space is $10 p.s.f. or to the common area is $35 p.s.f.
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>
125 Employees |
<
125 Employees |
| Real
Estate Tax Abatement |
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Years 1-3 there is a
$2.50 tax abatement |
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Year 4 the abatement
is 2/3 of the $2.50 |
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Year 5 the abatement
is 1/3 of the $2.50 |
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|
| -
Years 1-3 there is a
$2.50 tax abatement |
| -
Year 4 the abatement
is 2/3 of the $2.50 |
| -
Year 5 the abatement
is 1/3 of the $2.50
*For
a small firm that
signs a lease for
3-5yrs
|
| -
Years 1 there is a $2.50
tax abatement |
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Year 2 the abatement
is 2/3 of the $2.50 |
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Year 3 the abatement
is 1/3 of the $2.50 |
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| Commercial
Rent Tax Reduction |
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Years 1-3 there is a
100% reduction |
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Year 4 the reduction
is 66% |
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Year 5 the reduction
is 33% |
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| |
| |
|
| -
Years 1-3 there is a
100% reduction |
| -
Year 4 the reduction
is 66% |
| -
Year 5 the reduction
is 33%
*For
a small firm that
signs a lease for
3-5yrs
|
| -
Years 1 there is a 100%
reduction |
| -
Year 2 the reduction
is 66% |
| -
Year 3 the reduction
is 33% |
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Lower
Manhattan Energy Program
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Commercial tenants are eligible
to receive a 12 year (13
for landmarked buildings)
reduction in their energy
delivery costs, of up to
30% per year for the first
8 years (9 for landmarked),
declining at 1/5 of the
reduction per year for the
remaining 4 years. In order
to be eligible, owners must improve the building by 20% of the current assessed value.
Combined with Con Edison’s Business Incentive Rate, owners receive approximately 50%
savings on eligible energy costs.
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 Return to FAQ
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