The Relocation and Employment Assistance Program (REAP) helps businesses. It gives income tax credits for moving jobs to certain areas in New York City. If your business moves jobs from outside New York City or below 96th Street in Manhattan to areas above 96th Street or other boroughs, you can apply.

To apply, your business must move at least one employee to a qualified location.

Benefit

• You can get a $3,000 credit each year for 12 years for each eligible employee, or per "eligible aggregate employment share". This is for moves to revitalization areas zoned as C4, C5, C6, M1, M2 or M3.
• For moves to other eligible areas that are not revitalization areas, you can get a $1,000 credit each year for each eligible employee.

You can use these credits against:

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

You can get refunds for the year you move and the next four years. If you don't use all of your credits, you can carry them forward for five years.

Eligible businesses

• Your business must have been operating outside New York City or below 96th Street in Manhattan for at least 24 consecutive months before moving.

• Most retail and hotel services do not qualify. However, internet sales and sales by mail or phone may qualify.

Eligible premises

• The new location must be nonresidential.
• The property must have been improved by construction or renovation.
• The cost of improvements must be more than 50 percent of the assessed value for commercial property or 25 percent for industrial property.

For moves on or after July 1, 2003, the new location must meet either the Property or Premises Criteria. For moves before July 1, 2003, it must meet the Property Criteria.

Property criteria

The new location must be:

• Eligible for the Industrial and Commercial Incentive Program (ICIP). Note: The Industrial and Commercial Abatement Program (ICAP) does not provide 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 must be for at least three years after the lease start date or the date of relocation, whichever is later.
• The cost of improvements must be more than $25 per square foot on or after July 1, 2003.

The Mayor can limit REAP benefits for businesses that reduce their number of employees in lower Manhattan to relocate elsewhere. For moves from lower Manhattan before July 1, 2005, the Mayor can limit benefits if the business reduces staff by more than 100 employees. For moves on or after July 1, 2005, any reduction in staff may result in a reduction of benefits.

The application deadline is June 30, 2025. You must file for annual re-certification for each eligible year.

• Employer ID number (EIN):

  • Corporations and partnerships need an EIN.
  • Sole proprietors can use their Social Security number.
  • Learn more about the Employer Identification Number (EIN).

• Business age:

  • Your business must be at least two years old.
  • You need to show copies of your business' federal tax returns as proof.

• Employee move:

  • Move at least one worker from outside the eligible area to within the eligible area.

  • Eligible areas include above 96th Street in Manhattan or any of the other four boroughs:

    • Brooklyn
    • The Bronx
    • Queens
    • Staten Island

  • For more details, contact the Department of Finance.

• Property rules:

  • The new property must be one of these:
  • Eligible for the City's Industrial and 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
  • If leased, the lease must last at least three years after the start date or move date, whichever is later.

• Property improvements:

  • Spend more than 50 percent of the assessed value for commercial property improvements.
  • Spend more than 25 percent of the assessed value for industrial property improvements.
  • Spend at least $25 per square foot for improvements after July 1, 2003.

• The New York City Industrial Development Agency (NYCIDA) is a public benefit corporation.
• NYCIDA is organized under Article 18-A of the New York State General Municipal Law.
• It works in all five parts of New York City.
• The agency helps companies and not-for-profit groups with capital expansions and become more competitive by locating within New York City or expanding their existing operations.
• NYCIDA supports economic growth in New York City.
• It helps keep current jobs and make new ones.

• Submit application:

  • Complete the application (certificate of eligibility) and include all required documents.
  • Annual certifications are needed to determine the REAP benefit for each of the 12 years.

• Application deadline:

  • Submit applications to the address on each form by July 1, 2008 to claim REAP credit for this fiscal year.

• Annual computation:

  • Submit an annual computation of total employment shares kept by the eligible business.
  • Finance will issue an annual certification to attach to your business tax return.

• ADD application:

  • Complete and submit the ADD application for an expected move, even if all information is not available.
  • If your current eligible premises are in a revitalization area, your new premises must also be in a revitalization area.
  • Premises cannot be certified as additional or replacement if you kept employment shares there before applying for certification.