Good news for New York commercial real estate owners: The Industrial and Commercial Abatement Program (ICAP) in New York City has officially begun its 2023-24 renewal period.
What is ICAP?
The New York City Industrial and Commercial Abatement Program (ICAP) allows property owners to reduce their real estate taxes by up to 50%. ICAP applies to all New York City commercial, industrial, and manufacturing properties and provides property tax abatements for up to 25 years to newly constructed, modernized, expanded, or otherwise physically improved industrial and commercial buildings.
How does it work?
ICAP is an excellent opportunity for businesses in New York City to reduce their property tax burden and invest in their operations. But, businesses must file their initial or renewal applications before the deadline to take advantage of this program, and the deadlines are a bit complicated.
The deadline for filing a preliminary ICAP application is March 1, 2025. The final application must be filed within one year from the building permit issuance date or within one year from the start of construction if no permit is required.
To be eligible for the ICAP program, new commercial construction can be done anywhere in the city (except in some parts of Manhattan). Industrial and commercial buildings must be built, modernized, expanded, or physically improved in “covered” sections of New York City. Once accepted into the program, recipients of the ICAP must make an annual electronic online filing of a form known as a Certificate of Continuing Use (CCU).
The New York City Industrial and Commercial Abatement Program is a great way to help businesses save money. The program allows you to apply for tax reductions on your commercial property, which can be used toward renovations or other improvements that will increase the value of your business.
If you're considering taking advantage of ICAP, now is the time. But the process can be tricky and difficult to navigate, and the deadlines are firm. If you have any questions about ICAP or how it might benefit your business, The Law Offices of Melvin Monachan can help. Our experienced team has helped other business owners move through the ICAP process, and we can help you, too. Contact us online or call us at (347) 389-1682 today.