Financing & Incentives

NYCIDA Industrial Program

NYCIDA tax incentives lower the costs of constructing, renovating, and owning industrial facilities.

Program Benefits

Real Estate Tax

Building Taxes

  • Building taxes are stabilized at pre-improvement real estate tax amounts for up to 25 years (with benefits phasing out at not more than 20% per year, starting in year 21)

Land Taxes

  • 100% land tax abatement is available if the project is in an Industrial Business Zone (IBZ) (with benefits phasing out at not more than 20% per year, starting in year 21)

For projects outside of IBZs, land tax abatements are stabilized at the pre-improvement real estate tax amount for up to 25 years and may be further abated, with benefits phasing out at not more than 20% per year, based on the value of improvements as follows:

Investment Amount
(Exclusive of Acquisition Cost)
Land Tax Abatement
Over $5 million25%
Over $10 million50%
Over $15 million75%
Over $20 million100%

Sales Tax Exemption

  • The 8.875% city and state sales tax is waived on purchases such as construction materials and equipment

Mortgage Recording Tax:

  • The mortgage tax is reduced from 2.8% to 0.3%, reducing 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.

Factors considered by NYCIDA include (without limitation):

  • Size of capital investment (minimum of $1 million, exclusive of acquisition cost)
  • Jobs created and average wages paid
  • Nature of business
  • Neighborhood
  • Overall financial picture
  • For developer projects, tenanting strategy and timeframe
  • Environmental review

Contact Info

[email protected]
212.312.3600