ICAP Deadlines Extended to 2029

by | Sep 26, 2024 | Industry Updates

New York City’s Industrial and Commercial Property Tax Abatement Program (ICAP) has just been extended four years. ICAP provides a New York City property tax abatement for the construction or renovation of commercial, industrial, and certain mixed-use properties. In order to be eligible for these property tax benefits, property owners must adhere to the following deadlines:

  • March 1, 2029:Deadline to file an ICAP Preliminary Application with Department of Finance (DOF). This is done before Department of Buildings (DOB) issues the first building permit for the ICAP project, but no later than March 1, 2029.
  • April 1, 2029: Deadline to pull the first DOB building permit for the ICAP project, after the ICAP Preliminary Application is filed with DOF.
  • April 1, 2029: Deadline to meet all other ICAP compliance requirements, which include, but are not limited to: (a) solicitation of certified Minority & Women Owned Business Enterprises (MWOBE) prior to awarding contracts; and (b) compliance obligations of the NYC Department of Small Business Services.

Rosenberg & Estis, P.C. has obtained millions of dollars of ICAP property tax benefits for owners of many properties in New York City. Our depth of experience has optimized ICAP eligibility and benefits for our clients, including coordinating ICAP and property tax certiorari guidance, as the amount and timing of building assessed value added are critical to the amount of ICAP abatement benefits. R&E is uniquely positioned to maximize these benefits because it offers both ICAP expertise and tax certiorari expertise under one roof, as well as relevant expertise with other ICAP issues (e.g., construction, tax escalation clauses for commercial leases, lender concerns about ICAP benefits, forming condominium declarations, etc.).

If you are interested in learning more about the ICAP program, please contact your R&E attorneys or Daniel M. Bernstein, Member and Head of R&E’s Tax Incentives and Affordable Housing Department and Benjamin M. Williams, Member and Head of R&E’s Property Tax Department, who authored this alert.