New York State department of taxation and Finance - Office of Real Property Tax Services
real property tax incentive programs: Commercial properties in designated areas of Manhattan

Purpose

This program promotes more productive use of older commercial properties in lower Manhattan by stimulating economic activity.

Eligibility

  • 5-year abatement

    Real Property which (1) was constructed prior to January 1, 1975 and (2) contains premises that are occupied or used as offices, retail spaces, or as a private elementary or secondary school under a lease executed between April 1, 1995 and March 31, 2004 which is certified by the NYC Department of Finance, and (3) is located in designated areas of Manhattan is eligible for a 5-year abatement in taxes, but is liable for special assessments.

    The amount of the tax abatement is limited to the tenant’s share of the eligible square footage of the building times the “abatement base, “defined as the lesser of $2.50 of the tax liability per square foot or 50% of the tax liability per square foot for the first three years of the abatement; two-thirds of the first year abatement for the fourth year abatement; and one-third of the first year abatement for the fifth year abatement.  The commencement of this abatement is limited to the period between April 1, 1995 and March 31, 2014.

  • 3-year abatement

    Real property which (1) was constructed prior to January 1, 1975, (2) is located in designated areas of Manhattan, and (3) contains premises which are occupied or used as offices, retail space, or as a private elementary or secondary school by a tenant under a lease executed on or after April 1, 1997 with an initial lease term of less than five but at least three years is eligible for a 3-year abatement in taxes, but is liable for special assessments.

    This tax abatement is limited to the tenant’s share of the eligible square footage times the abatement base, which for purposes of this abatement is equal to the tax liability per square foot subject to a maximum of $2.50 per square foot for the first year of the abatement; two-thirds of the first year abatement for the second year abatement; and, one-third of the first year abatement for the third year abatement.  The commencement of this abatement is limited to the period between April 1, 1995 and March 31, 2010.

Contact          

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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