Relocation and Employment Assistance Program (REAP)
The REAP Program has been extended to June 30, 2020.
The Relocation and Employment Assistance Program (REAP) offers business income tax credits for relocating jobs from outside of New York City or below 96th Street in Manhattan to designated locations above 96th Street in Manhattan or in one of the other four boroughs.
To apply, the eligible business has to move at least one employee from outside the REAP area to a qualified location.
An annual credit of $3,000 for twelve years per eligible employee, or per "eligible aggregate employment share" for relocating to a designated location. Qualified locations are revitalization areas and are zoned by the City as C4, C5, C6, M1, M2, or M3; or
An annual credit of $1,000 per share for relocating to parts of the eligible area that are not revitalization areas.
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.
- Must have conducted substantial business operations either outside New York City or below 96th Street in Manhattan for at least 24 consecutive months immediately before relocating.
- Most retail activities and hotel services do not qualify; however, internet sales and sales by mail or telephone may qualify.
Premises must be nonresidential and must have been improved by construction or renovation. In addition the premises must either:
- Be contained in property meeting the following criteria:
- eligible for ICIP;
- leased from the IDA;
- leased from New York City;
- leased from the Port Authority or New York State Urban Development Corporation;
In addition, expenditures must be made for improvements to the property in excess of 50% of the assessed value (25% of the assessed value for industrial properties) at the start of the improvements.
- Meet the following premises criteria:
- If the premises are leased the lease term must extend to a date at least 3 (three) years after the later of the following:
- Lease commencement date; or
- Date of relocation
Although relocations from lower Manhattan to the eligible area qualify for REAP, the Mayor has discretion to limit REAP benefits for businesses that reduce their number of employees in lower Manhattan to relocate elsewhere. For relocations from lower Manhattan before July 1, 2005, the Mayor may only limit REAP benefits to businesses that reduce staff in lower Manhattan by more than 100 employees. For relocations on or after July 1, 2005 any reduction of staff in Lower Manhattan may result in a reduction of benefits.
Forms and Reports
Applicants must submit a completed REAP application
and all required supporting documentation. Annual certifications are required to determine the amount of REAP 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.
Please submit all new applications and annual re-certifications online using e-Services
Application deadline was extended to June 30, 2020
. You must file for annual re-certification for each eligible year.
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