Downtown New York Tax Incentives

Downtown Manhattan Real Estate Tax Incentives

Lower Manhattan’s history as buzzing hub of American commerce stretches back hundreds of years. It has seen countless transformations, growing from a seaport to a worldwide center for financial institutions, multi-national businesses and leading entrepreneurs. Along the way, Downtown Manhattan developed one of the world’s most sophisticated transportation networks and an ultra-modern technical infrastructure second to none.

The Lower Manhattan Economic Revitalization Program, enacted in 1995, established many business incentives to encourage growth in Downtown Manhattan. After the horrific attacks on the WTC on September 11th, 2001, legislation was passed creating additional business incentives to keep downtown New York vital.


These business incentives include:

See our models detailing the amounts of money a typical ten or one hundred-person company remaining or relocating to Downtown would save due to the incentives.

Grants

$3500 per employee. Any organization that relocates or renews a lease in Lower Manhattan and employs fewer than 200 people will receive a grant of $3500 per employee if a commitment of 5 or more years is made.

$5000 per employee. Any company located in the area delineated by Chambers Street to the north, Broadway to the east, Rector Street to the south and the Hudson River to the west during the 9/11 WTC attacks that employs less than 200 people and enters into a new lease or buys new property in Lower Manhattan is entitled to grant of $5000 per employee. If property is leased rather than purchased, the lease term must last at least 5 years.

Discretionary awards: The New York City Economic Development Corporation gave discretionary grants to companies with 200 or more employees that chose to stay in Lower Manhattan or move there after the 9/11 attacks.

WTC Business Recovery Grants: Organizations with fewer than 500 employees located on or south of 14th Street during the 9/11 attacks received recovery grants.

Tax Credits / Property Tax Incentives

All organizations based on or below Canal Street received a tax credit of $4800 per employee for the years of 2002 and 2003.

Real Estate Tax Abatement: All lower Manhattan buildings build before 1975 received a $2.50 per square foot real estate tax abatement. Landlords are legally bound to pass the savings to occupants by lowering rent.

Commercial Rent Tax Special Elimination and Reduction: For the initial three years any commercial lease in all pre-1975 Lower Manhattan buildings there will be no Commercial Rent Tax. During the fourth year of the lease, the tax will be reduced by 2/3. During the fourth and fifth years of the lease, the tax will be reduced by 1/3.


Business Tax Deductions/Accelerated Depreciation Benefits.
30% additional depreciation for property: All businesses in Lower Manhattan can save money on technology/equipment investments by depreciating the value of new property by an additional 30% of the price paid for it. This is a major increase to the standard depreciation rates established by the IRS.

Increased business tax deduction: Lower Manhattan organizations may subtract $59,000 ($35,000 higher than normal) from their taxable burden for every year until 2006 by writing off technology.

Increased depreciation for leasehold improvements: All leasehold improvements in Lower Manhattan may be depreciated over 5 years rather than the standard 39 years.


Reduced-price Power:

20% Discount on Power. Up to 80 megawatts of price discounted up to 20% may be purchased by businesses that move to or begin operating in Lower Manhattan.

Lower Manhattan Energy Program. If a tenant has made improvements to the building equal to 20% or more of the assessed value, electricity coasts may be reduced by up to 45% for twelve years.


Low-Interest Loans:

The Small Business Administration may award long-term low-interest loans to companies in New York for up to $10,000,000. Click here for additional info.

Lower Manhattan Small Business and Workforce Retention Project - Loans of up to $100,000 may be awarded to retailers and manufacturers on a first-come, first-serve basis. They are limited. Learn more by calling the Downtown Alliance’s hotline at 212-835-2771.

Accion, NY American Dream Disaster Relief Fund - Loans of up to $30,000 may be allocated to companies located below 14th Street, serving a majority of customers also located south of 14th Street. Ten percent of the loan amount may be given as a grant. To learn more, click here or call Sarah Sable at 718.620.0353.