Financing & Incentives

NYCIDA Commercial Office Space Incentives

NYCIDA tax incentives can lower the costs of constructing, renovating, and owning commercial office space for tenants and developers.

Program Benefits

Real Estate Taxes

  • Building taxes may be stabilized at the pre-improvement assessed value for up to 25 years
  • Land taxes may be stabilized for up to 25 years

Sales Tax 

  • The 8.875% city and state sales tax may be waived on materials used to construct, renovate, or equip facilities

Mortgage Recording Tax 

  • The mortgage tax may be reduced from 2.8% to 0.3%, lowering upfront costs

Application Considerations 

All NYCIDA benefits are discretionary. NYCIDA will assess the need for financial assistance and the economic impact of the proposed project.

NYCIDA will consider commercial office development projects that will assist in new construction or major renovation of commercial office facilities primarily targeted for use by high-growth industries, such as technology, advertisement, media, information technology, engineering, life sciences, and fashion. The project should be located in an area of the city that lacks adequate commercial office facilities to meet market demand for such facilities.  

Factors considered by NYCIDA include (without limitation):
  • Size of capital investment (minimum of the greater (i) $5 million or (ii) 25% of the combined assessed valuation of the project land and existing improvements, exclusive of acquisition cost)
  • Existing and newly created jobs; average wages 
  • Nature of the businesses occupying the space
  • Neighborhood 
  • Overall financial picture of business or property owner
  • For developer projects, tenanting strategy and timeframe, including letters of commitment from one or more anchor tenants
  • Environmental review 

Contact Info

[email protected]