Prior to Monday's passage of A10241/S7135, office and retail tenants would have had until this Wednesday to commence leases that would qualify for the tax abatements. The legislation extends that eligibility period to March 31, 2014, and the benefit period from March 31, 2016 to March 31, 2020. Additionally, the time period in which tenant improvements to eligible premises must be made has been extended from Sept. 30, 2010 to Sept. 30, 2014. The legislation also extends the benefit period for the commercial rent tax reduction from March 31, 2015 to March 31, 2020.

In a statement, Elizabeth Berger, president of the Alliance for Downtown New York, says that passage of the tax abatement extension is "a significant mechanism for business attraction and retention in Lower Manhattan. As our region continues to weather the lingering recession, it is particularly critical to provide tools for growth and vitality in commercial areas, and today's action does just that." Berger had advocated for passage of the measure.

According to the city's Department of Finance, CRP was implemented in 1995 to increase tenant occupancy in office and retail space Downtown, and to reduce building obsolescence "by encouraging investment in older commercial space or conversion to residential use." Under CRP, the Department of Finance offers a real estate tax abatement of $2.50 per square foot for commercial tenants moving into pre-1975 properties. The abatement is available for up to five years; subleases and relocations from the outer boroughs are not eligible.