Tax Reduction Programs

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	Tax Reduction & Rebate Programs There are different types of tax reduction programs – exemptions, abatements and an annual property tax rebate. These programs reduce taxes on residential and commercial properties that an owner must pay each year. Exemptions provide tax relief by reducing a property's taxable assessed value, that is, the portion of the assessed value to which the tax rate is applied. Abatements also reduce the amount of tax due by giving a dollar credit against the tax liability. Rebates provide a refund to offset a portion of the tax already paid. Individual Rebates, Exemptions, and Abatements Tax Reductions for Individual Property Owners The City and State of New York offer a number of tax reduction programs to qualified individual owners of 1-, 2-, and 3-family houses, condominiums, and cooperative apartments. Many homeowners are entitled to property tax reductions, but do not receive them because they never applied. These exemptions and abatement benefits include the New York State School Tax Relief (STAR) Exemption, the Senior Citizen Homeowners' Exemption (SCHE), the Veterans' Exemption, the Disabled Homeowners' Exemption (DHE), the Clergy Exemption, and the Cooperative and Condominium Tax Abatement. Clergy Exemption A Clergy exemption is available for one (1) property owned by a Minister of the Gospel, Priest, Rabbi or Imam of any denomination. Cooperative and Condominium Tax Abatement This provides partial tax relief to owners or tenant-shareholders of Class 2 condominiums or cooperatives to reduce the gap between taxes paid by residential property owners in Class 1 and Class 2. Disability Rent Increase Exemption (DRIE) The DRIE program offers exemptions from rent increases to qualified renters with disabilities. Disabled Crime Victim and Good Samaritan Exemption Designed to provide tax relief for disabled crime victims and Good Samaritans who must modify a one-, two-, or three-family home, as a result of that crime. The modifications must accommodate their special needs. Military Request for Relief Active duty military personnel may request relief from the Lien Sale, Tax Warrants, Environmental Control Board judgments, and parking judgments by providing information about their military service. Senior Citizens Rent Increase Exemption (SCRIE) Provides landlords of rent-regulated apartments with a credit against their property tax. This credit is for rent increases a landlord does not receive from tenants age 62 or over who have limited incomes. Veterans' Exemption Qualified veterans, and certain family members, can receive property tax exemptions up to 15% of their assessed property value. Construction Exemptions and Abatements Commercial Property Tax Benefits Finance provides programs that reduce the taxable assessed value of a property, which is used to calculate the property tax owed. You can use the Commercial Property Tax Benefit Lookup to access Commercial Property Benefit information on the following programs: 421a, 421b, 421g, ICIP, J51, DAMP and UDAAP. Find Commercial Property Tax Benefits Note: Finance has other commercial benefits such as abatements that are not yet shown here. This information will be available soon. 421a This program promotes construction of multi-family residential buildings with at least three dwelling units. It provides a declining exemption on the new value created by the improvement. 421b Developed to promote new construction of one- and two-family homes and make home ownership more affordable. 421g Encourages the conversion of non-residential buildings in Lower Manhattan to residential use. Commercial Expansion Program (CEP) Promotes the development of commercial and industrial areas outside of Manhattan's central business districts. CEP Provisions for Industrial and Manufacturing Tenants CEP Summary of Benefits Commercial Revitalization Program (CRP) Enacted to increase tenant occupancy in office and retail space in lower Manhattan and other areas of the City. The program encourages investment in older commercial space or conversion to residential use. CRP Summary of Benefits Division of Alternative Management Program (DAMP) Developed to return City-owned residential properties to private ownership. Green Roof Abatement New York State law allows for tax abatements for "green roofs". NYC Department of Buildings Green Roof Fact Sheet NYC Department of Buildings Green Roof FAQ NYC Department of Buildings Green Roof Abatement Form Industrial and Commercial Abatement Program (ICAP) (Replaces ICIP) The ICAP program provides abatements of real property taxes for varying periods up to 25 years for eligible industrial and commercial buildings. These buildings must be constructed, modernized, rehabilitated, expanded, or otherwise physically improved. J-51 The J-51 Benefit gives a partial tax exemption and abatement benefits for the renovation of residential properties. The benefits can vary depending on the property’s location and the extent of improvements. Lower Manhattan Relocation and Employment Assistance for Eligible Businesses (LMREAP-EB) The Lower Manhattan Relocation and Employment Assistance Program (LMREAP) offers eligible businesses income tax incentives for relocating to certain lower Manhattan areas from outside the City. The business must move at least one employee from outside the City to the lower Manhattan area. Lower Manhattan Relocation and Employment Assistance for Special Eligible Businesses (LMREAP-SEB) The Lower Manhattan Relocation and Employment Assistance Program (LMREAP) for Special Eligible Businesses was created to extend LMREAP business income tax incentives to businesses that relocate to certain lower Manhattan areas from outside the City. The business must relocate at least 250 employees or a sufficient number of employees to increase its payroll in the City by 25%, whichever is fewer. Relocation and Employment Assistance Program (REAP) The Relocation and Employment Assistance Program (REAP) encourages businesses to relocate from outside the City and from below 96th Street in Manhattan to above 96th Street in Manhattan or to one of the other four boroughs. REAP offers business income tax credit for relocating to one of these areas. The tax credits are based on the number of qualified jobs connected to the relocation. Solar Panel Abatement New York State law allows for tax abatements for installing solar electric generating systems. NYC Department of Buildings Solar Electric Fact Sheet NYC Department of Buildings Solar Electric FAQ NYC Department of Buildings Solar Panel Abatement Form Urban Development Action Area Program (UDAAP) Designed to encourage the construction of residential housing on formerly City-owned land in designated areas. Institutional & Governmental Exemptions and Abatements Government Property tax exemptions are given to local, federal or foreign governments using the property for governmental purposes. This includes maintaining offices for government representatives. Industrial Development Agency (IDA) The IDA is administered by the City’s Economic Development Corporation and provides tax exempt financing to stimulate business expansion and increase employment. Expansion can be in manufacturing, industrial or not-for-profit corporations. Not-for-Profit Designed to decrease or eliminate property tax for properties used for charitable, educational, medical, or other exempt purposes.

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