The Lower Manhattan Economic Revitalization Plan, which includes real estate tax abatements and energy cost incentives, was initiated in 1995 by Mayor Rudolph Giuliani as a means of attracting commercial and residential investment to Downtown New York. Eligible commercial tenants are those who are expanding or renewing leases Downtown, or who are coming Downtown from outside New York City or from Manhattan south of 96th Street. The program is applicable in Lower Manhattan south of Chambers Street and in selected commercial districts in Brooklyn, Queens, the Bronx and Staten Island.

A Summary of Incentives

Lower Manhattan Commercial Revitalization Program

Benefits for both programs are applicable for pre-1975 commercial buildings with leases executed prior to March 31, 2007. Minimum lease term for large tenants (more than 125 employees) is 10 years. Minimum lease for small tenants (125 employees or fewer) is 5 years for full benefits. Small tenants may sign 3-year leases and receive three years of benefits (year 1, 100%; year 2, 66%; year 3, 33%). Minimum required investment for small tenants is $5 per square foot (p.s.f.), for large tenants $35 p.s.f. Investment may be made in eligible space or common area. Deadline for filing is 180 days after lease commencement.

• Real Estate Tax Abatement
  

  A five year program. The abatement in years one, two, and three is equal to 100% of the property tax in the initial year, but capped at $2.50 p.s.f. In the fourth and fifth years of the abatement period, the benefit will equal two-thirds and one-third, respectively, of the initial tax abatement. Benefits must be passed through to the tenants. Click here for more information.

To see a map of participating buildings click here.

To download a list of participating buildings, click here.

Lower Manhattan Energy Program

A 12-year program consisting of a reduction in electricity costs of approximately 30% for 8 years, phased in at 20% each year thereafter. In order to be eligible, owners must improve the building by 20% of the current assessed value. Combined with Con Edison’s Business Incentive Rate, owners receive approximately 50% savings on eligible energy costs. Click here for more information.

Residential Conversion Benefits (for developers only)

A program consisting of a 100% exemption of the increased assessed value due to conversion for 8 years and phased in at 20% every year thereafter for a total of 12 years. This is combined with 14-year abatement of the existing tax base at 100% for the first 10 years, and phased in at 20% thereafter. The plan allows for a one-year exemption of increased value during construction. Landmarked Buildings receive an additional year of exemption and abatement benefits.

Please note tax incentives for converting commercial buildings to residential or mixed use expire on June 30, 2006, one year earlier than originally scheduled. To be eligible, ownersmust secure building permits by that date. Click here for more information.

Industrial and Commercial Incentive Program (ICIP) (for developers only)

A 12-year exemption based on the increase in assessed value due to building renovations. Property owners must expend 20% of the buildings initial assessed value to qualify. ICIP works in conjuncture with other Lower Manhattan Incentive Programs such as the Lower Manhattan Energy Program. Must file prior to first permit allowing construction to proceed. For more information, click here.

For questions regarding these incentives, call the Grants and Incentives Hotline at the Alliance for Downtown New York (212) 566-6700 or reach us by e-mail at  incentives@DowntownNY.com. To better answer your questions please include your company name, address and number of employees.