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About
The Commercial Expansion Program (CEP) program is designed to increase tenant occupancy in commercial offices and industrial/manufacturing spaces. CEP provides property tax benefits for qualified new, renewal, and expansion leases in commercial offices and industrial/manufacturing spaces built before January 1, 1999. The properties must be located in a designated abatement zone. Applicants are also required to make certain minimum physical improvements to the eligible premises and the common areas.
Benefit
Three or Four-Year Leases
In the initial year, the tax abatement is equal to the actual property tax liability per square foot or $2.50 per square foot, whichever is less. It is equal to two-thirds the initial amount in year two and one-third in year three.
Leases of Five or More Years
The abatement lasts for five years. In years one, two and three it is equal to the actual property tax liability per square foot, or $2.50 per square foot, whichever is less.
The abatement is equal to two-thirds the initial amount in year four and one-third in year five.
Leases of up to Ten Years (Manufacturing Only)
The abatement lasts for up to ten years depending on the lease. There is no phase out. The same expenditure requirements (see above) as commercial CEP apply and must include a description of the beginning raw materials and final product(s) manufactured.
|
Benefit |
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|
Lease Term |
Abatement Period |
Year 1 |
Year 2 |
Year 3 |
Year 4 |
Year 5 |
| 3 - 4 Years | 3 Years | Property tax liability or $2.50 per sq. ft. whichever is less | 2/3 of initial abatement | 1/3 of initial abatement | Abatement Expires | Abatement Expires |
| 5 Years (Commercial) |
5 Years | Property tax liability or $2.50 per sq. ft. whichever is less | Property tax liability or $2.50 per sq. ft. whichever is less | Property tax liability or $2.50 per sq. ft. whichever is less | 2/3 of initial abatement | 1/3 of initial abatement |
| 5 Years or more (Manufacturing) |
5 Years or more | Property tax liability or $2.50 per sq. ft. whichever is less | Property tax liability or $2.50 per sq. ft. whichever is less | Property tax liability or $2.50 per sq. ft. whichever is less | Property tax liability or $2.50 per sq. ft. whichever is less | Property tax liability or $2.50 per sq. ft. whichever is less |
Eligibility
Location
Manhattan (north of 96th Street zoned C4, C5, C6, M1, M2, or M3) and all areas in the Bronx, Brooklyn, Queens and Staten Island.
Lease Term
If companies have fewer than 125 employees, the lease term must be for at least 3 years; if there are more than 125 employees, the lease term must be for at least 10 years. All leases must begin before March 31, 2014 in order to be eligible for the program.
Eligible Properties
The property must be classified as a non-residential or mixed-use building built before January 1, 1999.
Additional resources
NYC Department of Finance (DOF)
Commercial Expansion Program
66 John Street, 13th Floor
New York NY 10038
For further assistance, please call 311 and ask for: Commercial Expansion Program