The benefits under this program are equal to a $3,000 tax credit per employee and lasts for twelve years (the first five of which could produce a refund check). If you are a business relocating from outside of New York City or Manhattan south of 96th Street to another part of the City, you may be eligible for the Relocation and Employment Assistance Program. THE RELOCATION AND EMPLOYMENT ASSISTANCE PROGRAM (REAP). Retail firms and hotels are not allowed to participate in this program.
Moreover, your lease should state that the Landlord will cooperate with you in your application. If you are a relocating tenant, you must submit your application BEFORE signing a new lease or signing a contract to purchase your relocation building.
Applications for ECSP must be made contemporaneously with the ICAP application. You may use any energy provider since the reduction is for delivery costs, which are most often through Con Edison or National Grid.
#ICAP ABATEMENT FULL#
The benefit lasts for eight full years with a four year phase out. The benefit is equal to 45% reduction in the electricity delivery costs and a 35% reduction in the gas delivery costs (both for non-heating purposes). Moreover, if you are a tenant relocating from Manhattan south of 96th Street to another part of the City (a “relocating tenant”), you qualify for ECSP even if you are not in a building that has qualified for ICAP. You may apply for ECSP if you qualify for ICAP or are a tenant in a building that has qualified for ICAP. However, unlike the remaining programs, retail firms and hotels are eligible for this program, although the amount of the benefit for retail properties is limited in certain instances. Moreover, because of certain eligibility criteria related to formerly manufacturing properties and ICIP properties, some buildings may not be eligible. Most consultants can complete the application and assist you with other benefit applications. Moreover, the final application will require some expertise and unless you wish to spend significant time figuring out all the paperwork, you should hire a consultant to file the application or at least to guide you through the process. While this is possible, the legal requirements for filing have become much more complicated over the past few years due to compliance requirements with EEO rules and minority and women owned businesses. Some small business owners attempt to file an ICAP application by themselves. If you are negotiating a lease with a landlord and you will be applying for ICAP after the commencement of the lease, you should ensure that language is within the lease insuring that all benefits are passed onto you and that the Landlord will cooperate with your application. However, if they are not and you are a tenant planning to perform improvements, you should seek the cooperation of your landlord before beginning the application process as the landlord must be a co-applicant with you. If you are a tenant, you should be aware that Owners most typically file for ICAP benefits and that the savings may already be a part of your lease. (If you pull the permit, and then apply, you will not qualify for the abatement.) If you are a manufacturer, and you are planning on making capital improvements to your property equal to at least 40% of the taxable assessed value, then you can receive an actual reduction in your real estate taxes up to one half of what you are currently paying on the building portion of your taxes in addition to the abatement on any increase in taxes. If this is your plan, then you should file an ICAP application before you “pull” a building permit. To qualify, a building owner and/or tenant must be planning to make capital improvements to the property equal to thirty (30%) percent or more of the building’s taxable assessed value. The tax break for all properties is an abatement on any taxes greater than 115% of your initial tax due to the capital improvements that are made and this break can run for up to 25 years. THE INDUSTRIAL AND COMMERCIAL ABATEMENT PROGRAM (ICAP).īegun in 1984 under a different name, ICAP provides real property tax relief for capital improvements to real property. Because of Robert’s expertise in government tax incentives, he can also advise you of potential benefits and tax breaks before and after purchase or leasing, these benefits include:
Robert only provides services for residential sales and leases for current clients or referrals from current clients. Moreover, Robert has assisted many landlords and tenants with the leasing of their commercial properties. He has represented buyers and sellers in the purchase of commercial properties in the millions of dollars. Robert Altman is an experienced real estate attorney.
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