Lower Manhattan Commercial Rent Tax Reduction

This benefit lowers the rent amount subject to the Commercial Rent Tax (CRT). Non-profit companies and businesses with yearly leases under $200,000 do not pay this tax, so they are not eligible for the CRT Special Reduction.

Enhanced reduction for leases (July 1, 2005-June 30, 2013)

Tenant and lease qualifications

• Lease location must be in a nonresidential or mixed-use building south of Canal St.

• Lease type must be for:

  • Premises in an eligible government-owned building
  • Premises in a non-government-owned building that qualifies for the Commercial Revitalization Program (CRP)

• Lease duration must be for at least five years. Subleases do not qualify.

Benefits

• Benefit period: five years

  • Year one: The reduction equals the base rent.
  • Years two through five: The reduction is the lesser of the year one base rent or the base rent for the year in question.

Note: The Enhanced Special Reduction Program was not extended for leases starting after June 30, 2013. Until it is extended, tenants only qualify for the Basic Reduction.