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New York State department of taxation and Finance - Office of Real Property Tax Services
real property tax incentive programs: Commercial Expansion Program/Special Garment Center District and designated areas outside of Manhattan’s central business districts

Purpose

This program encourages businesses to locate in Manhattan above 96th Street (or in the Midtown Special Garment Center District), the Bronx, Brooklyn, Queens and Staten Island.

Eligibility

The program provides a real estate tax reduction for space that has been leased (new, renewal or expansion lease) for commercial, office or industrial purposes within Expansion areas -- all manufacturing districts and most commercial areas outside of Manhattan's central business districts. The tax abatement is passed through to the tenant as a reduction in rent. The program excludes any space occupied or used for retail, hotel or residential purposes.

  • To be eligible, the premises must be located in a non-residential or mixed-use building with a minimum aggregate floor area of 25,000 square feet. The building must have been constructed prior to January 1, 1999. The lease must commence between July 1, 2000 and June 30, 2010 and be for a term of at least three years. Finally, the program requires minimum improvements to the premises, varying by the length of the lease and the number of employees that will be located at the premises.
  • The program provides the same tax benefits and structure as the Real Estate Tax Abatement program under the Commercial Revitalization Program.  Qualifying leases with a term of five years or more are eligible for a five-year tax abatement while qualifying leases with a term of at least three years but less than five years are eligible for the three-year benefit.

Under legislation enacted in 2005, the program was liberalized to promote manufacturing and industrial activity within the Expansion areas as well as in the Manhattan Special Garment Center District, as defined in the City’s zoning resolution.  A qualifying firm that enters into a lease for three years or more on or after July 1, 2005 is eligible for a tax abatement/rent reduction for up to 120 months.

Contact          

NYS Office of Real Property Tax Services

New York City Department of Finance
Commercial Expansion Program (CEP)
66 John Street
New York, New York 10038
Phone 311 (within NYC) or 212 NEW-YORK (from outside NYC)

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