New York State department of taxation and Finance - Office of Real Property Tax Services -
real property tax incentive programs: New York city industrial and commercial abatement program (icap)


This program encourages economic development by means of tax exemptions and abatements for construction or rehabilitation of commercial, industrial, or mixed-use structures. The ICAP program provides abatements of real property taxes for varying periods up to 25 years for eligible industrial and commercial buildings that are built, modernized, rehabilitated, expanded, or otherwise physically improved.


    Industrial and commercial businesses. Various restrictions on retail activity depending on location.

    To be eligible for commercial New Construction benefits, an applicant may build anywhere in New York City except in Manhattan, south of the centerline of 96th Street.

    To be eligible for benefits for commercial renovation, applicant must expand, modernize, or improve an existing structure anywhere in the City. Excluded is the area in Manhattan, between the centerline of 59th Street and the centerline of 96th Street.

    Below 59th Street, specific commercial renovation benefits are available in three areas: 

    • Garment Center District
    • An area in lower Manhattan bounded generally by Murray Street, South Street, Battery Place and West Street; and
    • The remainder of Manhattan below 59th Street.



NYS Office of Real Property Tax Services
New York City Department of Finance
Industrial and Commercial Abatement Program
59 Maiden Lane
New York, New York 10038
(212) 487-3626

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