February 21, 2014

Speaker Silver Applauds Governor Cuomo for Amending Executive Budget to Include Tax Breaks for Lower Manhattan Businesses

Speaker Silver today released the following statement regarding the amended Executive Budget's inclusion of tax breaks for businesses in Lower Manhattan.

I am pleased that Governor Cuomo has included the extension of critical financial incentives for Lower Manhattan businesses in the amended Executive Budget. I have long championed these tax breaks as our community is still struggling to recover from the terrorist attacks of 9/11, and residents and businesses are continuing to rebuild homes and businesses after Superstorm Sandy devastated the area more than a year ago.

These tax breaks will encourage businesses to remain in or relocate to Lower Manhattan and are a critical investment in our economy. I want to thank Governor Cuomo for his partnership in promoting economic activity and job creation in New York City.

The incentives passed as part of the budget plan include:

The Lower Manhattan Energy Program and NYC Energy Cost Savings Program (ECSP)

Industrial and commercial companies that relocate to new or improved space would receive a discount on the delivery portion of their electric bill and gas delivery costs. The program would be extended to June 30, 2015

Lower Manhattan Relocation and Employment Assistance Program

The program gives a credit of up to $3,000 per eligible employee to firms that relocate all or part of their operations to Lower Manhattan. It would be extended to June 30, 2015.

Lower Manhattan Commercial Rent Revitalization Program

Intended to increase tenant occupancy in office and retail space, the program provides property tax benefits. The program would be extended for two years.

New York City Commercial Rent Expansion Program

This program provides a property tax reduction for spaces that have been leased for commercial or industrial purposes. It provides property tax benefits for qualified new, renewal and expansion leases in commercial offices and manufacturing spaces built before 1999. The program would be extended for two years.

Lower Manhattan State and Local Sales Tax Exemption

This program provides exemption from the sales tax on goods purchased for the build-out of office space in Lower Manhattan. Minimum lease terms must be ten years. Leases must commence prior to September 1, 2015 for tenants in Lower Manhattan and September 1, 2017 for tenants in the World Financial Center, World Trade Center or Battery Park City. The program would be extended for two years.

NYC Commercial Rent Tax Special Reduction

The program provides an exemption from commercial rent or occupancy tax for premises used for leased space in certain NYC areas. The program extends the date upon which a lease must be entered to June 30, 2015.

New York City Industrial and Commercial Abatement Program

The program provides abatements for property taxes for up to 25 years. To qualify, industrial and commercial buildings must be built, modernized, expanded or otherwise physically improved. Those who qualify must spend at least 30 percent of the property's taxable assessed value within four years. The program application period would be extended for two years.