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The Excelsior program is targeted to particular industries, including software development, life sciences, back office services, and manufacturing. 1 The second credit, the Excelsior Investment Tax Credit, is equal to 2 percent of qualified investments that meet a 10:1 benefit-cost threshold and generate new wages. The first credit, the Excelsior Job Growth Tax Credit, is equal to 6.85 percent of gross wages for each net new full-time job. This consists of two fully refundable tax credits. The state has indicated Amazon can receive up to $1.2 billion in Excelsior tax credits over a ten-year period. Elements of New York State’s Incentive Proposal Excelsior Jobs Program Tax Credits This blog explains the incentive package provided by the State and City and offers five takeaways about the deal and its lessons for future economic development policy. To facilitate this investment, Amazon will receive benefits of up to $1.7 billion from New York State and $1.8 billion from New York City. The location will serve as one of three headquarters of the company, along with Seattle, Washington, and Arlington, Virginia. Amazon has committed to creating 25,000 full-time high-paying jobs over ten years investing approximately $2.5 billion and building 4 million square feet of office space, with the possibility of expanding to 8 million square feet and 40,000 jobs. For more information or to schedule an appointment, call Rosen Law today at (516) 437-3400, or contact us.The announcement that Amazon has chosen Long Island City, Queens, as one of two locations for its planned HQ2 project has generated much attention. Our goal is to save you money, so we will also look at other abatement and exemption opportunities. We will meet with you at your convenience, go over your project, and determine the best way for you to benefit from this particular tax abatement program. Īt Rosen Law, we routinely file applications for commercial and industrial projects under the ICAP. Information regarding ICAP fees and deadlines can be found here. If the percentage is higher, apportionment is necessary. The ICAP is intended to benefit developers of industrial and commercial projects, so no more than 20% of the total square footage can have a residential purpose. For renovation work in covered areas, benefits are available for retail spaces equal to or less than 5% of the project. When a construction project in a designated area has a retail portion of over 10%, IACP benefits are calculated separately. In addition, all work must be completed within five years. Additional benefits are available for industrial projects that spend 40% of the taxable assessed value. Commercial renovations in lower Manhattan and the Garment District, for example, are eligible for a tax abatement of up to 12 years while the rest of Manhattan below 59th Street faces a benefit schedule of 10 years.įor renovations and other improvements, you must spend a minimum of 30% of the property’s taxable assessed value within four years of receiving the building permit (or the construction date if a permit is unnecessary). Tax abatements of up to 25 years are available, although most projects qualify for 10 or 12 years. Whether the property will have a retail purpose.Whether your project is a new construction or a renovation/improvement.If your project site is somewhere below 59th Street, special additional benefits are available in the Garment Center District, which is bordered by Murray Street, Battery Place, South Street, and West Street.īenefits under the ICAP vary depending on: Commercial renovations can be anywhere in the city except the area between 59th and 96th Street.For new commercial construction, projects may be located anywhere in the city of New York except for the area south of 96th Street and north of Murray, Frankfort, and Dover Streets.Qualified projects may receive a real property tax abatement for up to 25 years.įor your project to be eligible, it must involve the building, expansion, modernization, or overall improvement of a commercial or industrial building in certain areas of the city.Ĭovered areas include Brooklyn, Queens, Staten Island and the Bronx and certain districts in Manhattan. If you intend to develop or renovate an industrial or commercial property in New York City, you may be eligible for a significant tax abatement under the New York State Industrial and Commercial Abatement Program, or ICAP.ĭesigned to replace the Industrial Commercial Incentive Program (ICIP), which came to an end in 2008, the ICAP is administered by the New York City Department of Finance, which issues Certificates of Eligibility.