New York Governor Kathy Hochul has signed Senate Bill S9822, extending the Industrial and Commercial Abatement Program (ICAP) application deadline from March 1, 2025, to March 1, 2029.

The four-year extension of the ICAP program allows property owners in New York City to continue benefiting from tax abatements for eligible industrial, retail and commercial buildings that are built, modernized, expanded, or otherwise improved.

What is the ICAP program?

The ICAP program aims to encourage investment in retail, commercial and industrial properties and offers property tax abatements for up to 25 years.

How do I apply for an ICAP Abatement?

To be eligible, applicants must apply for ICAP benefits prior to the issuance of the first construction permit.  Please contact Seiden & Schein, P.C. right away if you are contemplating commercial construction work or you have construction permits in process, so that we can ensure compliance with this important requirement.

Following the ICAP application filing, applicants must also have a construction permit issued by April 1, 2029 and spend a minimum of 30% to 40% of the property’s assessed value towards the construction work.

What other real estate tax incentives are available in New York City?

As a reminder, New York State has recently enacted two additional types of residential tax incentives.  The 485-x program, which replaces 421-a, is available for new construction, and the 467-m program provides substantial real estate tax savings for non-residential to residential conversions.  Seiden & Schein, P.C. is available and ready to assist you with both.

In addition, the deadline to complete construction under the 421-a program has been extended for those projects that filed a Letter of Intent with HPD by September 12, 2024.

Please contact Jason Hershkowitz or any member of Seiden & Schein, P.C.’s tax incentives team for additional information regarding any of these programs.

Contact:

Jason Hershkowitz      [email protected]

Jay Seiden                [email protected]

Frank Baquero           [email protected]

Scott Schreiber          [email protected]

Efram Klipper            [email protected]

Seiden & Schein, P.C.

570 Lexington Avenue, 14th Floor
New York, New York 10022

(212) 935-1400

Website:www.seidenschein.com

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