For new commercial construction, where retail makes up to 10% of the total property, the project is eligible for the standard 25-year benefit schedule and retail above 10% receives a modified 15-year benefit schedule.
#ICAP TAX ABATEMENT FULL#
Commercial renovation projects are eligible in Lower Manhattan and receive a full exemption on the increase in assessed value due to the improvements for 8 years, followed by a 4-year exemption period with benefits declining by 20% per year.
New commercial construction receives a full exemption on improvements for 11 years, followed by a 4-year exemption period with benefits declining by 20% per year. Developers of commercial projects must make expenditures of at least 30% of the assessed value of the project in the year the building permit is issued. Eligibility for ICAP benefits in Lower Manhattan may also allow a participant to receive reduced energy rates through the Lower Manhattan Energy Program (LMEP) (See below). ICAP, administered through the NYC Department of Finance, provides a partial exemption from or abatement of property taxes for up to 25 years for eligible industrial and commercial buildings south of Murray Street that are built, modernized, rehabilitated, expanded, or otherwise physically improved. Industrial & Commercial Abatement Program (ICAP) In addition, an application is due within 180 days of rent commencement or sixty days from the date the act became law, whichever is later. The extension is deemed effective after June 30, 2013. The tenant must be located in a non-residential building south of Canal Street, and leases must commence prior to June 30, 2015. The CRT portion of the CRP offers an exemption on the commercial rent tax, a tax paid by retailers and commercial tenants with an annual rent of $250,000 and above per year. Tenants must submit their application within 180 days of the lease commencement. Expenditures must be documented and submitted to the Department of Finance. Expenditures required are based on the number of employees and length of the lease, and range between $5 per square foot and $35 per square foot. Tenants receive the benefit as a pass-through from their landlord and must jointly apply for the tax abatement with their landlord. Firms employing over 125 people must have 10 year leases, and will receive the benefit for 5 years. Firms with less than 125 employees may have 3 to 5 year leases (or longer), depending on the length of the lease. Leases may be 3, 5, or 10 years, depending on the number of employees. Tenants must make improvements to their space and leases must commence prior to March 31, 2016. Under the CRP, the Department of Finance offers a $2.50 per square foot real estate tax abatement for up to 5 years for commercial tenants that locate in non-residential pre-1975 buildings located south of Murray Street and Frankfort Street, west of South Street and east of West Street in Lower Manhattan. Applicants are also required to make certain minimum expenditures to improve the eligible premises. These benefits apply to non-residential or mixed-use premises located in designated abatement zones. The NYC Department of Finance provides benefits under CRP through two tax incentives: a $2.50 per square foot real estate tax abatement and a Commercial Rent Tax (CRT) special reduction. The Commercial Revitalization Program (CRP) was developed with the goal of rehabilitating older buildings in Lower Manhattan. The legislation merely extended programs that were previously in existence. 
Please note, that these are not new programs.
Please see below for revised expiration dates and details on qualifying for retroactive benefits. Programs that had lapsed were extended retroactively. Earlier this month, the 2014-2015 NYS budget passed with an extension of all Lower Manhattan incentive programs.
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