IDA Life Sciences Program
The IDA Life Sciences Program provides eligible Life Sciences companies and developers of Life Sciences space with real estate tax reductions, mortgage recording tax waivers, and sales tax exemptions on purchases of materials used to construct, renovate or equip facilities.
Eligible companies include life sciences companies and developers of life sciences space that are seeking to enter into long-term lease agreements, and planning to construct, or renovate, space for their own operations or to lease it to third parties.
The full value of land and building taxes may be abated for term determined by the agency necessary to incentivize the development of life sciences space. A phase-out of the benefit begins four years prior to the last year of the term and increases with 20% until the taxes are increased to the full amounts.
The 8.875% sales tax on materials used to construct, renovate or equip facilities may be waived.
Mortgage Recording Tax
Mortgage recording tax relating to the project's financing and 2.80% for mortgages greater than $500,000 may be reduced.
New York City Industrial Development Agency (NYCIDA) will accept applications from interested developers and landlords looking to activate life sciences real estate. Applications will be evaluated on a number of key aspects, including:
- Jobs and economic impact
- Size of development
- Benefits per square foot
- Term of leases to tenants
- Ratio of laboratory to office space
- Rents offered to tenants
- Current usage of the development
- Anchor tenant/partnership
- Project timing
Landlords and developers should in their application respond with a specific property that will partly or in its entirety, and as a result of the incentive, be repositioned as a life sciences asset.
To convey the above-described benefits, approved companies must lease their properties to NYCIDA, which leases the site back to the company for a term equal to term of real estate tax reductions. This ‘lease-back’ structure should not prevent companies from obtaining federal tax depreciation benefits on the property.