ICAP Tax Abatement

The ICAP Program gives tax abatements on property taxes for up to 25 years. Industrial and commercial buildings that are built, expanded, modernized or physically improved are eligible for the program. A property can receive ICAP and 421a benefits at the same time since ICAP covers commercial space and the 421a program does not.

Location Requirements

New Commercial Construction:

  • Areas south of 96th Street that include the south side of 96th Street and north of Frankfort, Murray, and Dover Streets do not qualify.
  • All other areas in the City qualify.

Commercial Renovations:

  • Areas between 59th Street and 96th Street that includes the north side of 59th street and south side of 96th street do not qualify.
  • All other areas in the City qualify.
  • Specific benefits apply for commercial renovations below 59th Street.
  • Additional benefits apply for the Garment Center District and Lower Manhattan between Murray Street, Battery Place, South Street and West Street.
  • Special areas of the City may receive additional benefits.

Improvements

  • At least 30% of a property’s Taxable Assessed Value must be spent within four years from the date of issuance of the building permit or from the date of commencement of construction in cases where permits are not required.
  • For projects that spend 40% of a property’s Taxable Assessed Value, additional benefits apply.
  • Date of completion for projects must be within five years from the date of issuance of the building permit or from the date of commencement of construction in cases where permits are not required.

Limitations on Eligibility

  • Rentable square footage is limited to no more than 20% for residential space. Apportionment is required for more than 20%.
  • Different abatement schedules may apply depending on how much space is dedicated for retail purposes.
  • Effective May 18, 2011, benefits apply for units that generate electricity, which are defined as Peaking Units. Benefits do not apply to other utility properties.