Lower Manhattan Relocation Employment Assistance Program for Special Eligible Businesses

The Lower Manhattan Relocation and Employment Assistance Program for Special Eligible Businesses (LMREAP-SEB) helps businesses that move to Lower Manhattan that do not qualify for the Lower Manhattan Relocation and Employment Assistance Program for Eligible Businesses (LMREAP-EB) because they already had employees in Manhattan before relocation. To apply, your business must move from outside the City to a qualified location.

Qualified locations in Lower Manhattan

The LMREAP-SEB 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 east to Washington Street. It continues south along Washington Street to West Houston Street, then east along West Houston Street to the East River.

Benefit

• Credit per employee: You can get a $3,000 credit per employee each year for 12 years. This is called "eligible aggregate employment share" (EAES). The number of EAESs is about the same as the number of full-time employees at the new location. There are some limits.

• Use of credit: You can use the credit against:

  • NYC General Corporation Tax
  • Banking Corporation Tax
  • Unincorporated Business Tax
  • Utility Tax

• Refundable credits: Credits are refundable for the year of relocation and the next four years. Unused credits from later years can be carried forward for five years.

Special Eligible Business

• Your business must have operated outside New York City for at least 24 consecutive months immediately before moving to Manhattan.
• Your business must move to eligible premises on or after June 30, 2005.
• Your business must have had employees in Manhattan between January 1, 2002, and the date you lease or buy the new location.
• Your business must move at least 250 employees or enough employees to increase its payroll in the City by 25 percent.
• Most retail activities and hotel services are not eligible. However, online sales and sales by mail or phone may be eligible.

Eligible premises

• The premises must be nonresidential.
• The premises must have been improved by construction or renovation.
• Improvement costs must be more than 50 percent of the assessed value for commercial properties or more than 25 percent for industrial properties.
• The lease or contract must be entered into after June 30, 2005.
• Improvement costs must have been made after June 30, 2005.
• Eligible premises must meet either the Property Criteria or the Premises Criteria below:

Property Criteria

• The premises must be in a property that is:

  • Eligible for the Industrial and Commercial Incentive Program (ICIP). Note: The Industrial and Commercial Abatement Program (ICAP), which replaced ICIP, does not provide for REAP eligibility.
  • Leased from the New York City Industrial Development Agency.
  • Owned by the City.
  • Leased from the Port Authority or New York State Urban Development Corporation.

Premises Criteria

• If leased, the lease term must be at least three years from the lease start date or the date of relocation, whichever is later.
• Improvement costs must be more than $25 per square foot.

Deadlines

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

Employer Identification Number

• If your business is a corporation or partnership, you need an Employer Identification Number (EIN).
• Sole proprietors can use their Social Security number.

Premises Criteria

• The building must be for business use only.
• The building must have been improved by construction or renovation after June 30, 2005.
• The lease or contract must be signed after June 30, 2005.
• Money spent on improvement must be spent after June 30, 2005.
• The building must meet either the Property Criteria or the Premises Criteria.

Property Criteria

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

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

Relocation Criteria

• The move must happen after June 30, 2005.
• The business must move its pre-existing business operations to the new building.
• The business must move at least 250 workers or enough employees to increase its payroll in the City by 25 percent.
• A new business will not qualify for this program.

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 the lease start date or move date, whichever is later.
• Costs must be spent after June 30, 2005.
• Costs must be at least $25 per square foot.

The New York City Industrial Development Agency (run by the NYC Economic Development Corporation) helps hundreds of companies and not-for-profit groups grow and compete for more business by moving to New York City.