Lower Manhattan Development Incentives

 

Incentive programs that offer significant cost savings are available to businesses locating or relocating to Lower Manhattan, including:

WTC Rent Reduction Program – Empire State Development Corporation
  • Rent reductions are available to lessees of commercial space at the World Trade Center, as follows:
    • $5.00 per square foot reduction of rent for eligible tenants leasing the first 750,000 square feet of commercial space at the World Trade Center site; and
    • A $3.80 per square foot reduction of rent for eligible tenants leasing the first 750,000 square feet of commercial space at Number 7 World Trade Center has been fully allocated and is no longer available for new tenants.
    • For Program Guidelines and contact information, click here.
    • For an Application, click here.
       
  • Please call (212) 803-3133 for further information.
     

Sales & Use Tax Exemptions – New York State Department of Tax & Finance

  • State and local (City) sales tax exemptions are provided for property and services purchased or used to:
    • Furnish, equip and/or build-out leased commercial premises at the World Trade Center site, 7 World Trade Center and Battery Park City, for all leases of at least 10-years, commencing between September 1, 2005 and September 1, 2011.
    • Build out costs (i.e., property that becomes an integral component part of the building) for leased commercial premises in the area south of Murray Street, for all leases of at least 10-years, commencing between September 1, 2005 and September 1, 2009.
    • The sales/use tax exemptions are available from the beginning of the lease through the first year of the lease. All eligible items must be installed or delivered no later than 90 days after the end of the first year.
       
  • Please click on Information from the New York State Department of Tax and Finance for a description of eligible purchases and geographic boundaries where the exemptions apply.
     
  • Please call 1-800-972-1233 for additional information
     

Commercial Rent Tax Savings – New York City Dept. of Finance

  • Commercial Rent Tax is eliminated for all leases signed at the World Trade Center site, including 7 World Trade Center and 130 Liberty Street.
  • Commercial Rent Tax is eliminated for retail leases in the area generally south of Murray Street between South and West Streets (effective December 1, 2005).
  • Five-year commercial rent tax exemption for new or renewal leases for businesses in the area generally south of Murray Street between South and West Streets.
  • All buildings qualify.
  • New/renewal lease must be a direct lease (no subleases) with a term of at least 5 years, commencing between July 1, 2005 and June 30, 2009.
  • The maximum exemption is fixed based on the base rent for the first year

Please call 311 (in New York City) or (212) New-York (if calling from outside New York City) for more information.
 

Lower Manhattan Relocation Employment Assistance Program (LMREAP) Benefits – New York City Department of Finance

  • Makes REAP benefits available to firms with existing operations in Manhattan that relocate existing, non-New York employees to Lower Manhattan.
  • Eligible businesses must relocate the lesser of 25% of their total existing New York City workforce or 250 employees from a location outside the City to Lower Manhattan (south of Houston Street) after June 30, 2005.
  • REAP benefit is a tax credit against New York City business tax equal to $3,000 per eligible job per year, for 12-years.
  • Credits are available for jobs relocated and also for additional new jobs created in Lower Manhattan during the first five years after the relocation.
  • Please call 311 (212-New-York if calling from outside New York City) or click on the following links for more information:

Job Creation and Retention Program – Empire State Development Corporation

  • If you are a large business employing over 200 people and are considering a Lower Manhattan location, you may be eligible for assistance from the federally-funded Job Creation and Retention Program (JCRP).
     
  • The program is jointly administered by Empire State Development (ESD) and the New York City Economic Development Corporation, and is designed to stabilize the job base in Lower Manhattan, restore the vibrancy of the downtown community, fuel job creation, attract new businesses and diversify the downtown economy. Having succeeded in reinforcing the downtown business community, JCRP’s current priority is to encourage large firms to establish operations in Lower Manhattan and create jobs. New projects are being considered for assistance through December 31, 2007.
     
  • The program provides discretionary incentive grants in return for a minimum commitment of seven years to maintain more than 200 jobs in Lower Manhattan. The level of assistance is based on several factors including economic impact, the number of jobs created and/or newly relocated to Lower Manhattan, and an assessment of the need for public funds to encourage the project.
     
  • Please call (212) 803-3133 for more information.
     

Small Firm Attraction and Retention Grant Program – Empire State Development Corporation

  • Firms that have previously received awards under the Small Firm Attraction and Retention Grant (SFARG) program can download 18 month disbursement forms and program guidelines here.
  • SFARG is not accepting new applications.
  • Please call (212)803-3691 for more information.