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State budget extends incentive programs for industry
April 2, 2014
This week, the State Legislature met the deadline for passing a State budget for the fourth consecutive year, which is the first time this has happened in decades.
Governor Andrew Cuomo, Assembly Speaker Sheldon Silver, State Senate Leaders Dean Skelos and Jeff Klein deserve a lot of credit for this important accomplishment. REBNY is pleased to see that Governor Cuomo and legislative leaders have continued to maintain the economic revitalization of New York City as a top state priority.
The state budget agreement has extended for two years the following programs; the Industrial and Commercial Abatement Program (ICAP) and the Relocation and Employment Assistance Program (REAP) provide economic benefits for eligible projects throughout the city; for eligible projects in Lower Manhattan, the Commercial Revitalization Program property tax abatement, the Energy Cost Savings Programs as well as the Sales and Use Tax Exemptions in certain areas and a commercial rent tax reduction have also been extended.
These programs have been successful and crucial components at attracting new capital investment and jobs to established and emerging commercial centers throughout the city, such as Lower Manhattan, Downtown Brooklyn, and Long Island City as well as the regional Central Business Districts in the Bronx and Staten Island.
The REAP and its Lower Manhattan-specific counterpart provide a tax credit for each employee that a business moves from outside New York City or Central Manhattan to the boroughs outside Manhattan or to Lower Manhattan.
The Commercial Revitalization Program works in tandem with the Commercial rent tax reduction and seeks to incentivize the rehabilitation of older buildings. In exchange for a tax abatement and exemption, non-residential and mixed-use participants are required to make capital improvements to their building.
The ICAP provides a partial exemption from or abatement of property taxes for up to 25 years for eligible industrial and commercial buildings that make physical improvements worth at least 30 percent of the assessed value of the project.
The Energy Cost Savings Program and the Lower Manhattan Energy Program both bolster ICAP by reducing energy costs by up to 45 percent for 12 years for eligible buildings and commercial tenants. Finally, the New York State Department of Taxation and Finance administers Sales and use Tax Exemptions that provide incentives to the build-out of office space in Lower Manhattan.
These economic incentive programs have different eligibility requirements based on location and project type. We encourage you to review the provisions of these laws which can be found on our website.
These programs will bolster the modest economic growth we are seeing throughout the city following the recession and the impacts from Superstorm Sandy. The real estate community thanks Governor Cuomo, Assembly Speaker Silver, and Senate leaders Skelos and Klein for including these much-needed programs in the state’s city’s fourth consecutive timely Executive Budget.
- In other REBNY News:
The second annual Harlem Open House Expo will take place on April 5th and 6th from 9:30 a.m. to 3:00 p.m. The event will kick off at Corner Social restaurant at 321 Lenox Avenue, and will include exclusive viewings of co-op, condo, and townhouse listings for sale in East Harlem, Central Harlem, West Harlem, and Hamilton Heights. For more information please visit www.rebny.com.
- On April 4th, Brooklyn Residential Seminar “Running Your Business From Apps: Essential Tools for Today’s Agent” will be held at St. Francis College in Brooklyn. The seminar is free for Residential Members. Registration is required and available through the REBNY events calendar at rebny.com.
- On April 9th, we are starting a seminar series: “Legal Line LIVE!” with REBNY Broker Counsel Neil Garfinkel. This seminar will take place quarterly. The seminars are open to Residential Principals and Managers. RSVP to email@example.com.
- On May 6th, the Sales Brokers Committee will present its Most Ingenious Deal of the Year Awards at the 70th Annual Cocktail Party at 101 Club. The event will take place from 5:30 to 7:30 p.m., and tickets are $60. For more information and to register, please visit www.rebny.com.
- On May 29th, REBNY is holding its 11th Annual Commercial Management Leadership Breakfast at the Hilton NY in the Grand Ballroom. Coffee will be served from 7:30 a.m. to 8:30 a.m., and the program will take place from 8:30 a.m. to 10 a.m. For more information contact Cindy Ramotar at firstname.lastname@example.org.
- On June 10th, the winners of the Retail Committee Retail Deal of the Year 2013 Awards will be announced at a cocktail party hosted by the Retail Committee on Tuesday. You are invited to review your New York City retail transactions completed in 2013 and submit any that you consider a likely candidate for the Retail Deal of the Year Award. There will be two awards in total, and the deadline date is at 5 p.m. on Thursday, April 10.