NYCEDC – Financing & Incentives – Tax Exemptions - Lower Manhattan Commercial Incentives

Tax Exemptions

LOWER MANHATTAN COMMERCIAL INCENTIVES

Program Descriptions

Contact Information

PROGRAM DESCRIPTIONS

Incentive programs that offer significant cost savings are available to businesses locating or relocating to Lower Manhattan, including:

Commercial Rent Tax Savings
Sales Tax Savings
Lower Manhattan Relocation Employment Assistance Program
Special WTC Rent Reductions

COMMERCIAL RENT TAX SAVINGS

Commercial rent tax has been eliminated for all leases signed at the World Trade Center site, including 7 World Trade Center and 130 Liberty Street.

A five-year special reduction from commercial rent tax is now available for new or renewal leases elsewhere in the area south of the centerline of Canal Street.
All buildings, regardless of construction date, qualify for the benefit.
The new or renewal lease must be a direct lease, not a sublease, with a term of at least five years (for large employer tenants with 125 employees or more at the subject premises, the new or renewal lease must have a term of ten years or more).
Commercial rent tax has been eliminated for retail leases in the area bounded by Murray Street and Frankfort Street on the north, South Street on the east, Battery Place on the south, and West Street on the west.

SALES TAX SAVINGS

Expenditures for build-out, furnishing and equipping of new office space are now exempt from sales tax for tenants signing new or renewal leases of ten years or more at the World Trade Center site, the World Financial Center and Battery Park City.

The exemption is available for costs incurred during the first year of the lease term for materials, equipment and labor to install them.
All eligible items must be installed or delivered no later than 90 days after the first year.
An eligible new space lease must be a direct lease, with a term of ten years or more.
Elsewhere in the area south of Frankfort and Murray Streets, sales tax is eliminated on build-out only (not furniture and equipment).

Sales Tax Savings (98 KB)

LOWER MANHATTAN RELOCATION EMPLOYMENT ASSISTANCE PROGRAM

Firms with existing operations in Manhattan may now receive REAP benefits for relocating existing, non-New York employees to Lower Manhattan.

Eligible businesses must relocate the lesser of 25 percent of their total existing New York City workforce or 250 employees from a location outside the City to Lower Manhattan south of Houston Street.
The tax credit is $3,000 per eligible job per year for twelve years against NYC General Corporate Tax, Unincorporated Business Tax or Bank Tax.
The credit is refundable in the first five years if the company does not have sufficient tax liability, and thereafter unused credits may be carried forward for up to five years.
Firms eligible for this benefit will receive credits for each job relocated and may also receive credits for the creation of new jobs in Lower Manhattan during the first five years after the relocation; these jobs must be additions to both NYC employment and Lower Manhattan employment.

LMREAP description (86 KB)

SPECIAL WTC RENT REDUCTIONS

The State of New York can provide rent reductions to first-mover tenants in 7 WTC and the main WTC site.

The bill provides for a $3.80 psf reduction of rent for up to the first 750,000 sf of commercial space leased at 7 WTC and a $5.00 psf reduction of rent for up to the first 750,000 sf of commercial space lease in the Freedom Tower or anywhere else on the WTC site.
These incentives are subject to agreement between the State of New York, the Port Authority of New York and New Jersey and Silverstein Properties regarding the specific terms.

CONTACT INFORMATION

Commercial Rent Tax Savings
New York City Department of Finance’s Commercial Rent Tax Savings

Or: New York City Economic Development Corporation
110 William Street
New York, NY 10038
(212) 312-3600/(888) NYC-0100
info@nycedc.com

Sales Tax Savings
New York State Department of Taxation and Finance’s Sales Tax Guide (PDF)
(800) 972-1233

Lower Manhattan Relocation Employment Assistance Program
New York City Department of Finance’s LMREAP

Or: New York City Economic Development Corporation
110 William Street
New York, NY 10038
(212) 312-3600/(888) NYC-0100
info@nycedc.com

Special WTC Rent Reductions
Empire State Development Corporation
(212) 803-3133
WTC Rent Reduction program guideline (PDF)
WTC Rent Reduction application (PDF)