Lower Manhattan Relocation Employment Assistance for Eligible Businesses

The Lower Manhattan Relocation and Employment Assistance Program for Eligible Businesses (LMREAP-EB) gives tax credits to businesses that move to Lower Manhattan. Your business has to move at least one employee from outside the LMREAP-EB area to a qualified location to be eligible.

Where in Lower Manhattan

The area is south of a line that starts at the Hudson River and the Holland Tunnel. It goes north along West Street to Clarkson Street. Then it goes east to Washington Street. It goes south along Washington Street to West Houston Street. It continues east along West Houston Street to the Avenue of the Americas. Then it goes east along East Houston Street to the East River.

Benefits

• Annual credit: $3,000 for 12 years per eligible worker. You can also get this credit per "eligible aggregate employment share" (EAES). The number of EAESs is about the same as the number of full-time workers at the new location. There are some limits.

• Credit usage: You can use the credit against:

  • NYC General Corporation Tax (GCT)
  • Banking Corporation Tax (BCT)
  • Unincorporated Business Tax (UBT)
  • Utility Tax

Credits are refundable for the year of the move and the next four years. You can carry forward unused credits from later years for five years.

Deadlines

The application deadline was June 30, 2020. You must file for annual re-certification for each eligible year.

You will need an Employer Identification Number (EIN).

Premises Criteria

• The building must be for business use.

• The building must be improved by construction or renovation.

• The lease or contract must be signed after June 30, 2005.

• The money spent on improvement must be spent after June 30, 2005.

• The building must either:

  • Be contained in property that meets the following Property Criteria.
  • Meet the Premises Criteria.

Property Criteria

The new property to which the business relocates must be one of these:

• Eligible for the City's Industrial Commercial Incentive Program
• Rented from the New York City Industrial Development Agency
• Owned by the City
• Rented from the Port Authority or New York State Urban Development Corporation

Relocation Criteria

• The move must happen after June 30, 2005.
• The move must be from an old business place to a new one.
• The business must move a minimum number of qualifying workers.
• New businesses do not qualify for the Lower Manhattan Relocation and Employment Assistance Program for Eligible Businesses.
• The business must move at least 250 workers or grow its payroll in the City by 25 percent from outside New York City to the new place.

Expenditures for Improvements

• Costs must be more than 50 percent of the building's assessed value for commercial properties.

• Costs must be more than 25 percent of the building's assessed value for industrial properties.

• If renting, the lease must last at least three years after either:

  • The start date of the lease
  • The move date, whichever is later

• Costs must be spent after June 30, 2005.

• Costs must be at least $25 per square foot.

• New York City Industrial Development Agency (NYCIDA) helps companies and non-profits grow: NYCIDA helps them move to New York City or expand their operations.
• NYCIDA's goal is to encourage economic development throughout the five boroughs. NYCIDA assists in retaining jobs and creating new jobs.
• NYCIDA is a public benefit corporation: It is set up under Article 18-A of the New York State General Municipal Law to serve the five boroughs of New York City.