Commercial construction projects subject to alteration, renovation, new development or other types of physical improvement may be eligible for the Industrial and Commercial Abatement Program (ICAP) property tax abatement. The abatement base for ICAP benefits is determined by subtracting 115% of the pre-construction tax from the post-completion tax on the building. It is important to note that the post-completion tax on the land is not abated.
There are a multitude of factors for developers to consider when applying for ICAP property tax abatement benefits. For example, if the project cost reaches a certain threshold, there are requirements to promote contracting opportunities among minority- and women-owned business enterprises (M/WBE). In addition, if the project contains areas not eligible for ICAP, the availability of other tax exemption and abatement programs must be considered. MGNY has been successful in procuring ICAP benefits for a variety of projects throughout the five boroughs.
CHECK FOR PROJECT ELIGIBILITY link to: http://icap.mgnyconsulting.com/