Businesses located in New York City are eligible for a wide variety of incentive programs, including tax benefits, energy and wage benefits, technical assistance, and more. These programs are designed to offer valuable services and savings to small businesses, while supporting the City's economic and neighborhood development.
Incentive programs are available for businesses in many different stages of development, and can be triggered by activities like:
- Relocating to or within NYC
- Expanding your business
- Investing in equipment
- Purchasing property
- Renovating or improving property
- Recruiting or training employees
The NYC Department of Small Business Services (SBS)
offers one-on-one consultations to help small business owners identify City, State and Federal incentives, for free.
Commonly Accessed Programs
Summarized below is an overview of some incentives programs which may be available for your business.
- Industrial and Commercial Abatement Program (ICAP)
ICAP grants abatements on real estate property taxes for renovated and newly-constructed commercial and industrial buildings. Properties must be improved by at least 30% of their assessed value to qualify for the abatement. Industrial properties improved by at least 40% of their assessed value are eligible for an additional abatement. Benefits can last up to 25 years depending on location. Restrictions on retail activity apply.
- Industrial Development Agency (IDA)
The IDA issues low-cost, double and triple-tax exempt bonds to commercial and industrial businesses, administered by The NYC Economic Development Corporation. Projects may also qualify for abatements or exemptions on their real estate taxes, sales taxes, and mortgage recording taxes.
- Commercial Expansion Program
Qualified commercial or industrial tenants located in targeted Commercial Expansion Areas can receive a three or five-year rent credit of up to $2.50 per square foot. Benefits are based on the length of the lease and the size of the company, and investment into the business space is required. Qualified manufacturing firms can receive a maximum of a ten-year benefit with no phase-out. Retail firms and hotels are ineligible, and landlords are required to pass the full savings on to tenants.
- Relocation and Employment Assistance Program (REAP)
A twelve-year annual tax credit of $3,000 is available for each qualified job relocated into targeted areas, and $1,000 in non-targeted areas. Benefits for new hires are also available. Businesses are qualified if they are relocating to New York City, or from below 96th Street in Manhattan to any other area of the City, with some restrictions for businesses moving from south of Houston Street. REAP benefits are also available to businesses relocating into Lower Manhattan. Improvements to buildings are required, and retail firms are ineligible.
- Industrial Business Zone (IBZ) Relocation Credit
A one-time tax credit is available for manufacturing firms moving into targeted Industrial Business Zones (IBZs). Businesses are credited for eligible moving costs up to the lesser of $1,000 per employee relocated, or $100,000. There are IBZs throughout the City.
- NYS Film Production Tax Credits
Qualified film and television productions can receive a 30% State tax credit on eligible production costs. Tax credits are available for feature length films, television pilots and television series.
- NYS Excelsior Jobs Program
The NYS Excelsior Jobs Program provides job creation and investment incentives to firms in targeted industries including biotechnology, pharmaceutical, high-tech, clean-technology, green technology, financial services, agriculture and manufacturing. Firms in these industries that create and maintain new jobs or make significant financial investment are eligible to apply for up to four new tax credits: Excelsior Jobs Tax Credit; Excelsior Investment Tax Credit; Excelsior R&D Tax Credit; and Excelsior Real Property Tax Credit.
New York State Energy Research and Development Authority (NYSERDA)
Find out whether you qualify for cost-saving energy incentives programs.Con Edison Green Team
Find out whether your business qualifies for free or subsidized energy-efficiency upgrades.Energy Cost Savings Program (ECSP)
Recipients can reduce electricity costs by up to 45%, and natural gas costs by up to 35%.
Contact us for more information