Overview of Incentives Available to Businesses in Lower Manhattan
Significant incentives exist for businesses to remain in or locate to Lower Manhattan as a result of legislation passed in response to the attack of September 11th and the preexisting Lower Manhattan Economic Revitalization Program. These incentives include:
Grants
1. Small Firm Attraction and Retention Program
- $3500 per employee grants - All businesses and not-for-profits with fewer than 200 employees that sign a new lease, extend an existing lease or purchase new facilities in Lower Manhattan. Note: a commitment of at least 5 years must be made.
- $5000 per employee grants - All organizations with fewer than 200 employees that were located in the Restricted Zone (Chambers Street to the north, Broadway to the east, Rector Street to the south and the Hudson River to the west) on September 11th, 2001 and sign a new lease, extend an existing lease or purchase new facilities in Lower Manhattan. Note: a commitment of at least 5 years must be made.
2. Discretionary grants
- Discretionary awards made by the NYC Economic Development Corporation to organizations with more than 200 employees that remain or relocate in Lower Manhattan.
3. Lower Manhattan Small Business and Workforce Retention Project (LMSBWRP)
- Co-administered by the Downtown Alliance and Seedco. Grants up to $25,000 (up to $50,000 for former WTC tenants and October 23rd Frozen Zone tenants) to cover one-time costs associated with 9/11 in addition to wage subsidies to cover 50% of the wages of up to 10 lower-income employees for up to three months. Eligible businesses are retailers and manufacturers with 50 employees or less and service businesses with 10 employees or less, located on or below Canal Street. Priority processing is given to former WTC tenants and October 23rd Frozen Zone tenants. To register, call: 1-866-473-3326. For additional information, please call the Downtown Alliance's hotline at 212-835-2771.
Use the incentives calculator to determine exactly how much your organization can save Downtown.
Liberty Zone Tax Benefits: Tax Credits, Tax Deductions/ Accelerated Depreciation Benefits
Tax Credits:
- $2400 per employee Federal tax credit - A tax credit for both 2002 and 2003 to every business with fewer than 200 employees of up to $2400 per employee based on or south of Canal Street.
Tax Deductions/Accelerated Depreciation Benefits:
- 30% bonus depreciation for property - Allows an additional 30% of the cost of office equipment, new technology and other property to be depreciated by businesses in Lower Manhattan in the first year of ownership - a significant acceleration over nomal IRS depreciation rates.
- Increased business expense deduction – Allows businesses in Lower Manhattan to reduce their taxable burden by $59,000 ($35,000 higher than normal) for each year until 2006 by writing off equipment.
- Accelerated depreciation for leasehold improvements – Allows any leasehold improvement in Lower Manhattan to be depreciated over 5 years rather than the normal 39 years.
Lower Manhattan Economic Revitalization Plan: Tax Abatements/Reductions
Commercial Revitalization Program
- $2.50 per square foot Real Estate Tax Abatement - Reduces real estate taxes in pre-1975 buildings in Lower Manhattan for five years by up to $2.50 per square foot and requires landlords to pass this savings directly through to tenants through reduced rents.
Commercial Rent Tax Special Elimination and Reduction
- Commercial Rent Tax Special Elimination and Reduction - Eliminates the Commercial Rent Tax in pre-1975 buildings in Lower Manhattan for the first three years of a lease and reduces it by two-thirds and one-third for the fourth and fifth years respectively.
Low-Cost Power
- Lower Manhattan Energy Program - Electricity transmission costs reduced by up to 45% for 12 years. A tenant is eligible for savings only if its building's owner has, since 1995, improved the building by 20% of the assessed value.
Low-Interest Loans
- Small Business Administration - Long term, low interest loans to businesses and non-profit organizations in New York. Maximum loan amount is $10,000,000.
- Lower Manhattan Small Business and Workforce Retention Project (LMSBWRP) -
Co-administered by the Downtown Alliance and Seedco. Low-interest rate loans of up to $100,000 (up to $200,000 for former WTC tenants and October 23rd Frozen Zone tenants), to retailers and manufacturers with 50 employees or less and to service businesses with 10 employees or less. Eligible businesses are businesses located on or below 14th Street on or before 9/11/2001 and businesses located in NYC that prior to 9/11/01 derived at least 10% of revenue from commerce with firms located on or below 14th St. Priority processing is given to former WTC tenants and October 23rd Frozen Zone tenants. To register with the program, call: 1-866-473-3326. For additional information, please call the Downtown Alliance’s hotline at 212.835.2771.
- WTC Business Recovery Loan Program -
Provides low-cost working capital loans on flexible terms to small businesses that have been adversely affected by the September 11, 2001 attack on the World Trade Center, and to small businesses that have subsequently located or will locate new operations in Lower Manhattan. The ESD selected a number of local community-based lenders to implement the program.
For questions regarding these incentives, call the Grants and Incentives Hotline at the Alliance for Downtown New York (212) 732-2407 or email to incentives@DowntownNY.com. To better answer your questions please include your company name, address and the number of employees. (The preceding information was provided by and is the property of the City of New York.)
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