Below is information about financial and incentive programs available for commercial developments. For further assistance, please contact the Brooklyn Chamber of Commerce's Director of Industrial and Manufacturing Services firstname.lastname@example.org, or at 718-875-1000 ext. 140.
Commercial Expansion Program (CEP)
CEP is a package of tax benefits designed to help qualified commercial and manufacturing businesses to relocate and expand in "Expansion Areas" in New York City.
CEP includes enhanced Relocation and Employment Assistance Program (REAP) benefits, modifications to the Industrial and Commercial Incentive Program (ICIP), rent abatements for commercial and industrial tenants and restructured Energy Cost Savings Program (ECSP) benefits. See below for more details.
Energy Cost Savings Program (ECSP) / Business Retention Incentive Program (BRI)
NYS' electric and gas utilities offer discounts to businesses that build new facilities; occupy vacant spaces; relocate; access alternative energy sources; or move to or expand in designated areas that are economically distressed or have an underutilized utility infrastructure.
- Provides discounted natural gas and electricity to qualified commercial and industrial businesses.
- Relocating businesses must file ECSP prior to signing lease or contract of sale.
Industrial & Commercial Incentive Program (ICIP)
Real Estate tax exemptions to owners of renovated and newly constructed commercial and industrial buildings.
Rent Abatement for Commercial & Industrial Tenants
Tenants in eligible buildings benefit from a reduction in real estate taxes of up to $2.50 per square foot and landlords are required to pass the full value of savings as rent reduction to their tenants.
New York Liberty Bonds
These low-cost, tax-exempt private activity bonds are an integral part of the federal assistance made available to New York to support the Lower Manhattan rebuilding effort. Up to $2 billion is set aside for commercial projects in New York City outside the Liberty Zone.
Relocation and Employment Assistance Program (REAP)
REAP is designed to encourage qualified businesses to relocate from Manhattan south of 96th Street, or from outside the city, to targeted "Expansion Areas" in New York City. Qualified businesses are entitled to an annual credit against city business tax liability from $500 up to $3,000 per eligible employee per year. Benefits are available for up to 12 years. The credit is refundable in the year of relocation and the following four years to businesses with a city tax liability less than the REAP benefit.
Businesses can apply REAP benefits as a credit against City General Corporation Tax, Unincorporated Business Tax, Bank Tax or Utility Tax liability. In the first five years, businesses are entitled to a refund for any unused credit. After the initial five years, unused credits can be carried forward against future tax liability.
Real Property Tax Abatement Under the Commercial Revitalization Program (CRP)
Real Property Tax Abatement and Commercial Rent Tax Special Reduction provides benefits to nonresidential or mixed-use premises built before 1975 and located in designated abatement zones. Applicants are required to make certain minimum expenditures to improve the eligible premises. Premises must be used for offices or retail stores and located in an eligible building.
SBA 504 Program
For new acquisitions only. Size of loan is between $250,000 to $7 million. 51% of building must be commercial and owner occupied. Structure of loan: Owner Equity (10%), Bank 1st Mortgage (50%), and SBA 504 2nd Mortgage (40%).