Industrial and Commercial Abatement Program (ICAP)

The Industrial and Commercial Abatement Program (ICAP) helps lower property taxes for up to 25 years for industrial and commercial buildings that are updated, expanded or improved. ICAP replaced the Industrial Commercial Exemption Program (ICIP) in 2008. ICIP benefits approved before 2008 are still valid.

Requirements

Location

• New commercial construction: Allowed anywhere in the City except parts of Manhattan. Areas south of 96th Street (including the south side 96th Street) and north of Murray, Frankfort, and Dover Streets do not qualify.

• Commercial renovations: Allowed anywhere in the City except parts of Manhattan. Areas between 59th Street and 96th Street (including north side of 59th street and south side of 96th street) do not qualify. Extra benefits are available below 59th Street, including:

  • Garment Center District
  • Lower Manhattan (between Murray Street, Battery Place, South Street and West Street)

Improvements

• Spend at least 30 percent of the property's taxable assessed value within four years from the building permit date or start of construction.
• There are extra benefits for projects spending 40 percent of the taxable assessed value.
• Complete construction within five years from the first building permit date or start of construction.

Limitations on eligibility

• Utilities: Benefits are available for electricity generating units called "Peaking Units." There are no benefits for other utility properties.
• Retail: There are different abatement schedules based on the retail usage percentage.
• Deadlines: Final application must be filed within one year from the building permit date or start of construction. Late applications are denied.

Eligibility for new construction

To be eligible for benefits of commercial new construction, you can build anywhere in New York City, except in Manhattan, south of 96th Street and north of Murray, Frankfort and Dover Streets.

Eligibility for renovation

To be eligible for the benefits of commercial renovation, you can expand, modernize or improve a building anywhere in the City, except in Manhattan, south of 96th Street and north of Murray, Frankfort and Dover Streets. Special benefits are available for renovation in:

• The Garment Center District
• An area in lower Manhattan bounded by Murray Street, South Street, Battery Place and West Street
• The rest of Manhattan below 59th Street

Minimum required expenditure (MRE)

You must spend at least 30 percent of the taxable assessed value of the project in the year you got the building permit or started construction. You must do this within four years from the date of the first building permit or the start of construction. For industrial construction projects, the MRE is 40 percent.

This page gives general information only. Visit the Industrial and Commercial Abatement Program website and contact us for more details.

• Submit two applications:

  • You need to submit a Preliminary Application for Certificate of Eligibility and a Final Application.

• Preliminary application:

  • Submit this before getting a building permit.
  • If no permit is needed, submit a notarized letter from the project's architect or engineer to the Department of Finance within 30 days of starting construction.
  • Note: If you get your permit before filing your Industrial and Commercial Abatement Program (ICAP) application, you will not be eligible for benefits.

• Final application:

  • File this no later than one year from the date of the first building permit or the start of construction.

• Income and expense statements:

  • File all required income and expense statements for the property.

• Interim construction reports:

  • Submit these reports to the Department of Finance every six months during construction or renovation.

• ICAP Minority and Women-owned Business Enterprises Compliance Report:

  • Submit this report with the Preliminary Application for Certificate of Eligibility.
  • The report is attached to the Preliminary Application.