Financing & Incentives

Accelerated Sales Tax Exemption Program

The Accelerated Sales Tax Exemption Program (A-STEP) provides companies with sales tax exemptions up to $100,000 for the purchase, installation, and maintenance of construction materials, equipment, and furnishings in order to upgrade, expand, and grow a variety of business activities.

Eligible Businesses: 

  • Industrial and manufacturing businesses 
  • Commercial businesses 
  • Food retail 

Program Requirements: 

  • Proposed project must be located within a highly distressed area or an area of need within the City as identified by NYCIDA1
  • Applicant business cannot have annual revenue in excess of $10 million or maximum annual revenue of $10 million
  • Food retail business must be investing in modernization and increased retail space for healthy or fresh food, such as: 

-Stocking low-sodium canned goods and canned fruit in 100% juice

-Stocking at least two healthy snacks and offering healthy sandwich and meal combinations at deli counter

-Displaying water and low-calorie drinks at eye level 

-Offering fruits and vegetables at the front of the store or at the checkout line

-Accepting electronic benefits transfer (EBT) cards for the purchase of qualifying foods

-Increasing fresh food and/or produce refrigerated cases

Additional Program Information 

Companies must commence improvements within one year of signing a sales tax exemption benefit agreement with NYCIDA and the sales tax exemption will expire no later than two years from the date of the agreement.

The environmental condition of the project site and the company’s insurance coverage must be satisfactory to NYCIDA prior to closing.

Approved companies who wish to have their contractor make sales-tax exempt purchases will need to submit additional background information pertaining to their contractor. The application process has a non-refundable fee of $500 for companies that appear qualified to progress to the application stage, in addition to a minimal closing fee.


For more information or to request an application for benefits through the Accelerated Sales Tax Exemption Program, please email [email protected]

 

1) As defined in Article 18-A, Title 1, Section 854 of the General Municipal Law.