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Lower Manhattan Relocation and Employment Assistance Program for Eligible Businesses (LMREAP-EB)
The Lower Manhattan Relocation and Employment Assistance Program for Eligible Businesses (LMREAP-EB) offers business income tax credits for businesses relocating to lower Manhattan.
The eligible business must move at least one employee from outside the LMREAP-EB area to a qualified location.
Qualified Locations in Lower Manhattan - View Map
The LMREAP-EB area lies south of a line running from the intersection of the Hudson River with the Holland Tunnel; running north along West Street to the intersection of Clarkson Street; running east to the intersection of Washington Street; running south along the centerline of Washington Street to the intersection of West Houston Street; and east along the centerline of West Houston Street, then at the intersection of the Avenue of the Americas the line continues east along the centerline of East Houston Street to the easterly bank of the East River.
Benefit
Eligible businesses receive an annual credit of $3,000 for twelve years per eligible employee, or per eligible aggregate employment share (EAES), for relocating to a designated location. The number of EAESs is roughly the same as the number of full-time employees working at the eligible location. There are some limitations.
The credit may be taken against the following:
- NYC General Corporation Tax (GCT)
- Banking Corporation Tax (BCT)
- Business Corporation Tax
- Unincorporated Business Tax (UBT), and/or
- Utility Tax
Credits are refundable for the year of relocation and the next four years. Unused credits from subsequent years may be carried forward for five years.
Eligible Businesses
- Must have conducted significant business operations outside of New York City for at least 24 consecutive months immediately before relocating
- Must relocate on or after July 1, 2003
- Must not have had employees working in New York City between January 1, 2002, and the date it enters into a lease or contract for eligible premises
Most retail activities and hotel services do not qualify. However, internet sales and sales by mail or telephone may qualify.
Eligible Premises
- Must be nonresidential
- Must have been improved by construction or renovation
- Expenditures for improvements to the property must be in excess of 50% of the assessed value of the property for commercial properties or 25% of the assessed value for industrial properties.
- Eligible premises must satisfy either the property criteria or the premises criteria below:
- Property Criteria - eligible premises must be located in property that is one of the following:
- Eligible for the Industrial and Commercial Incentive Program (ICIP)
- Leased from the New York City Industrial Development Agency
- Owned by the City of New York
- Leased from the Port Authority or New York State Urban Development Corporation
- Premises criteria
- If leased, the term of the lease must be at least three years from the lease start date or the date of relocations, whichever is later.
- Expenditures for improvements to the premises must be more than $25 per square foot and must be made on or after July 1, 2003.
- Property Criteria - eligible premises must be located in property that is one of the following:
Other REAP Programs
LMREAP-SEB (Special Eligible Businesses) may be available to businesses not qualifying for LMREAP-EB because they had employees in Manhattan before the relocation.
Forms & Reports
Applicants must submit a completed LMREAP application and all required supporting documentation. Annual certifications are required to determine the amount of LMREAP benefit for each of the twelve years. An application for certificate of eligibility of designated premises (REAP-ADD) must be filed for additional or replacement premises.
Deadlines
The application deadline was extended to June 30, 2025. Please file for annual re-certification for each eligible year.
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