Commercial Expansion Program

The Commercial Expansion Program (CEP) helps fill occupancy in offices and industrial spaces. CEP gives property tax benefits for new, renewal and expansion leases. These spaces must be built before January 1, 1999, and must be in a special zone. Applicants must also make some physical improvements to the spaces and common areas.

Benefit

Three or four-year leases

• In the first year, the tax abatement is equal to the actual property tax per square foot (sq. ft.) or $2.50 per sq. ft., whichever is less.
• In the second year, it is equal to two-thirds of the first amount.
• In the third year, it is equal to one-third of the first amount.

Leases of five or more years

• The abatement lasts for five years.
• In the first three years, it is equal to the actual property tax per sq. ft. or $2.50 per sq. ft., whichever is less.
• In the fourth year, it is equal to two-thirds of the first amount.
• In the fifth year, it is equal to one-third of the first amount.

Leases of up to 10 years (manufacturing only)

• The abatement lasts for up to 10 years, depending on the lease.
• There is no phase-out.
• The same spending rules as commercial CEP apply. It must include a description of the starting materials and final products made.

Here is a table to help you understand the different benefits:

Eligibility

Location

• Manhattan (north of 96th Street zoned C4, C5, C6, M1, M2 or M3)
• All areas in the Bronx, Brooklyn, Queens and Staten Island

Lease term

• If companies have fewer than 125 employees, the lease term must be for at least three years.
• If there are more than 125 employees, the lease term must be for at least 10 years.
• All leases must begin before March 31, 2014, to be eligible for the program.

Eligible properties

• The property must be a nonresidential or mixed-use building built before January 1, 1999.

• Employer Identification Number (EIN) or Social Security number (SSN): Corporations or partnerships need an EIN. Sole proprietors can use their SSN.
  Learn more about EINs.

• Application fee: $500

• Accepted payment methods:

  • Check (payable to New York City Department of Finance)
  • Money order (payable to New York City Department of Finance)

• Submit application:

  • Complete the Commercial Expansion Program application.
  • Include Proof of Expenditure and Proof of Employment forms.
  • Pay the fee with a money order or certified check.
  • Submit within 180 days of the lease start date.
  • Late applications will be denied.

• Provide evidence:

  • Show proof of expenditures and number of employees.
  • Do this within 60 days of the rent start date.

• Renewal lease applications:

  • Show proof of the number of employees within 60 days of rent start date.
  • Submit expenditure proof within 14 months of lease start date.

• Common area expenditures:

  • Only acceptable if work and expenditures happened between July 1, 2000, and December 31, 2010.
  • Expenditures made more than three years before the lease start date are not included.

• Certificate of Continuing Eligibility:

  • Download the form for continuing eligibility.
  • File this certificate between June 1 and June 30 each year.