We now service clients on a full array of
benefits citywide, regionally and nationally. The following is just a sampling of some of the
more active incentives in New York City. Dozens of similar programs are available throughout the United States, and we are actively pursuing these for our national and regional clients. Please call us for a full briefing on available programs for your business, your project or building.
PLEASE NOTE: Government economic incentives are time critical. Deadlines and sunset dates apply to every program. If you are getting ready to sign a lease, buy a building, or renovate property, please call us at 212-227-8283 so that our team may alert you to potential deadlines BEFORE you sign a lease or contract, and before you obtain a permit to do construction.
The New York Grant Company offers initial consultations free to charge. We can walk you through the benefits that may apply to your business, pre-screen you for eligibility, and outline the process for you. We also offer no-cost presentations to real estate firms and other professionals whose clients need to know about these benefits.
Relocation Employment
Assistance Program (REAP)
This is a great program for any business that relocates or expands into a qualified zone of NYC!
Grants City tax credits against company's business income tax. Credits are worth up to $3,000 per qualified employee per year over
each of 12 years. Credits are refundable in cash for up to 5 years to the extent they
exceed the company’s tax liability. Generous carry forwards also apply.
Additional rules apply. We can handle all technical requirements
and applications.
Real Case Example: Company from London, UK opened first office in NYC on Wall Street with 2 employees. Company receives $6,000 in NYC business income tax credits for each of the next 13 years, with credits refundable in cash in years 1 through 5.
back
to top
Commercial Revitalization Program (CRP)
The most successful program in lower Manhattan since 1995. Companies and not-for-profits that lease space in qualified buildings below Murray and Frankfort Streets
in lower Manhattan may receive:
(1) real estate tax abatements (i.e., rent subsidies) of up
to $10 per square foot payable over 5 years for qualified
tenants and (2) commercial rent tax reductions over five years.
Program renewed through March 2013. MUST
FILE WITHIN 180 DAYS OF LEASE COMMENCEMENT. We handle all
filings and ongoing compliance with the City.
Real Case Example: Financial services firm takes direct lease for 40,000 sf in the Financial District for 5 years. Landlord makes $5 psf or more in improvements to the space. Tenant receives $400,000 in rent credits over the next five years plus a savings of 3.9% in gross annual rent in occupancy taxes otherwise payable to the City.
back
to top
Commercial Expansion Program (CEP)
Similar to CRP, but applies throughout the boroughs outside of Manhattan and in Manhattan north of 96th Street, as well as in the Special Garment Center District in Midtown. Provides real estate tax abatements worth up to $10 per square foot payable over 5 years to tenants that sign leases within designated zones and buildings in Brooklyn, Queens, the Bronx, and Staten Island, and in Manhattan north of 96th Street and in the Fashion Center. Manufacturing or industrial tenants receive benefits over 10 years.
Eligibility and other rules apply.
Real Case Example: Garment center clothing manufacturer signs direct lease in the Garment Center Special District for a term of 5 years for 5,000 sf. Manufacturer receives $50,000 in rent credits over 5 years.
Commercial Rent Tax Special Reduction
Grants special reduction of NYC Commercial Rent Tax obligation of 3.9% occupancy tax on gross annual rent to firms that rent space in lower Manhattan south of Houston Street for up to five years and for manufacturing or industrial tenants in the Special Garment Center District for up to 10 years.. Permanent exemption available in certain other zones and for retailers south of Murray Street. Special application must be made, together with quarterly and annual filings. The New York Grant Company can take care of this for you.
As of 2005, this benefit has been expanded to businesses south of Canal Street that sign new or renewal leases, regardless of the age of the building.
Real Case Example: Fashion design studio in TriBeCa signs new direct lease for 15,000 square feet of high-end space for 10 years. Company saves $23,400 per year in occupancy taxes otherwise due to the City over the next five years.
Sales Tax Exemptions
Eliminates 8.875% sales tax on build-out costs in lower Manhattan, and on all build-out and furniture, fixtures, & equipment for new sites at Ground Zero. Must have qualified 10-year lease. The New York Grant Company has created a one-stop package of all required certificates and practical guidelines. We also file for refunds of any overpaid tax. Sales tax exemptions are also available in conjunction with IDA bond programs and Industrial Incentive Programs.
Energy Cost Savings Program
In today's marketplace, this is one of the most valuable programs in New York. It provides 20-25% energy discounts for qualified commercial and industrial projects throughout New York City's five boroughs. Program benefits last up to 12 years. Must meet essential deadlines and qualifications before you sign a lease or renovate.
Small Firm Assistance Program
Provides cash grants of up to $25,000 each for small businesses that operate on the ground or second story level of commercial buildings on designated streets and that have been adversely affected by construction and street closings in lower Manhattan. Program subject to limited funding through the Lower Manhattan Development Corporation.
Excelsior Jobs Program
A generous but complex Statewide program granting multi-tired credits, exemptions, and abatements to qualified companies that are growing and investing in New York State. Benefits last up to 10 years and may include: real estate tax exemptions, wage tax credits, sales tax exemptions, investment tax credits, and more.
Empowerment Zones
Provides generous federal business income tax credits for businesses located in Harlem or the South Bronx.
Industrial Business Zone Credits
Gives a one-time $1,000 per employee tax credit against New York City business income tax to qualified industrial companies that move into or within one of the many designated IBZ's (Industrial Business Zones) throughout the City. (This is an alternative for companies that do not otherwise qualify for REAP.)
Industrial Incentive Program
Provides approved manufacturers and industrial businesses with mortgage recording tax waivers, sales tax exemptions and real estate tax abatements for qualified projects within the five boroughs. Must receive IDA approval and inducement resolution to qualify. Excellent program, with benefits also available to small industrial companies
Industrial and Commercial Assistance Program (ICAP)
Property owners who make substantial investments in upgrading
and renovating buildings throughout New York City may obtain real estate tax
abatements for up to 25 years. We help owners save
multimillions in property taxes by shepherding all applications
and necessary proofs through the system.
back
to top
Lower Manhattan Energy Program
Owners of commercial properties may qualify for electricity discounts worth approximately
20-25% for up to 12 years in lower Manhattan south of Murray and Frankfort Streets. Application must be made in conjunction with another City benefit, such as ICAP or IDA. Benefits also pass through to tenants in the form of reduced energy costs.
Training Grants
City program that gives cash grants of up to $400,000 each to approved businesses that train employees with new or enhanced training programs throughout the five boroughs. Companies much match at least 30% of the grant awarded. Applications are subject to pre-screening process and strict eligibility criteria, but New York City is actively seeking new candidates. This is a great and underutilized program!
Industrial Development Agency (IDA)
Statewide program providing multiple benefits for approved projects involving acquisition and/or renovation of manufacturing or industrial facilities. Benefits may include triple tax-exempt bond financing at favorable rates; real estate tax exemptions and abatements; mortgage recording tax waivers; sales tax exemptions; and energy savings.
Linked Deposit Program
Saves 2-3% off prevailing interest rates on loans of up to $500,000 for qualified businesses throughout New York State. Must apply through State approved lenders who are compensated for the rate reduction through deposits of State funds. Applicants must be improving business competitiveness and creating or retaining jobs.
back
to top
Compliance
We can handle all compliance with government agencies for continuation
of benefits under City and State programs. Affidavits with
proof of expenditures, employment reports, certifications
for continuation of benefits, IDA reports, sales tax returns, and other filings—all
can be handled by our office. There is no need to spend valuable
in-house staff time or pay expensive attorneys or accountants for
this specialized detail work. Our team is uniquely
qualified to handle the back end administration of all your
benefits so that your firm may continue to receive maximum
awards.
back
to top |
