State Approves Downtown Tax Abatement

NEW YORK CITY-The New York State Legislature has approved another three-year extension of the Commercial Revitalization Program. The bill was originally passed in 1995 and has been renewed three times now, and offers a $2.50-per-sf tax abatement to building owners in pre-1975 buildings in Lower Manhattan. Tenants in these buildings see the savings directly in lower rents.

Eric Deutsch, president of the Alliance for Downtown New York Inc., tells GlobeSt.com that the program has been extremely important in the development of downtown over the last decade. The bill was originally introduced in 1995 after the economic down turn to provide businesses an incentive to stay or come downtown. The bill was renewed for the second time just after 9/11, which Deutsch says really aided in the redevelopment of the area.

“I think it is very important that Downtown continues to receive favorable treatment as its transportation and other infrastructure improvements still need to be fully realized in order for the market to be squarely where we all believe it is going,” Grubb & Ellis’ Joe Harkins tells GlobeSt.com. “The state was properly guided with regard to keeping this in place.”