NEW YORK CITY-For any company mulling a move from Manhattan into the outer boroughs—or any firm that is eyeing a migration into the city from elsewhere around the world—now's the time to pull the trigger. That's because the city's Relocation Employment Assistance Program is set to expire on June 30.
Under REAP, which is administered by the NYC Dept. of Finance, any business that moves from Manhattan to another borough or a firm from another city, state, or even country that comes to New York City is eligible for some serious cash rewards. More specifically, for any such company that has been in business for at least two years, the city will grant tax credits for 12 years—plus the actual year of relocation—of up to $3,000 a year per for each W-2 employee involved in a qualifying relocation.
Ann Kayman, CEO of New York Grant Co.—which helps companies to take advantage of tax credits and other incentives for which they're eligible, tells GlobeSt.com that the program includes part-time employees, if they work at least half-time and are on the payroll. Credits are refundable in cash for the first four years plus the year of relocation, to the extent that the credits exceed the company's tax liability to the city. Industrial relocations also qualify, and companies can include staff they've recently added, once they're on the payroll.
But the time to act is now, says Marsha Parris, SVP and COO of New York Grant Co., in an announcement. “The window is narrow and closing fast, but if a real estate deal is pending and the buyer or lessee and the site meet the program's requirements, it would be a terrible waste to miss out on the benefits.” The tax credits can be applied to the NYC general corporation tax, unincorporated business tax, banking corporation tax or utility tax, she notes.
Legislation is pending that could renew the program, NYGC officials note, but there is no assurance that it will be enacted.
“The program is really rich,” says Kayman. “It's a positive inducement to any company looking to come to New York, and it incentivizes people to hire.”
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Rayna Katz
Rayna Katz is a seasoned business journalist whose extensive experience includes coverage of the lodging sector, travel and the culinary space. She was most recently content director for a business-to-business publisher, overseeing four publications. While at Meeting News, a travel trade publication, she received a Best Reporting award for a story on meeting cancellations in New Orleans during Hurricane Katrina.
