NYC Childcare Center Tax Abatement Increased to $350,000 / $750,000

On December 5, 2025, New York State enacted a law that revives, extends, and significantly expands New York City’s Childcare Center Property Tax Abatement for owners who create or expand childcare centers.

Key changes include:

• For abatements starting in 2025/26 or later, the regular cap increases to $350,000, and the enhanced cap for properties in a childcare desert increases to $750,000.
• The benefit is still spread over five years, with annual limits of up to $70,000 (regular) or $150,000 (enhanced), subject to the property’s tax liability.

• The application deadline has been extended from March 15, 2025 to March 15, 2027.

• The program remains available for qualifying work completed on or after April 1, 2022, where a DOHMH-permitted childcare center is created or expanded and the costs are certified by a licensed engineer, architect, or CPA.

Under the first version of this program, our team represented four properties and obtained more than $500,000 in childcare center abatements, helping owners offset the cost of creating and expanding childcare facilities in New York City.

I’ve posted a detailed overview of the new law, eligibility rules, and planning considerations on my NYC property tax blog: “NYC’s Childcare Center Property Tax Abatement is Back – With Bigger Benefits and More Times to Apply.”

If you own or manage property that has recently been built out for childcare, or you are considering leasing space to a childcare provider, please reach out to your trusted R&E attorney or Benjamin M. Williams, who authored this industry update, if you would like to discuss whether this expanded abatement may apply to your building.