J-51 benefits are available in the form of both tax abatement and exemption for residential buildings subject to major capital improvements. The 6-20 year abatement allows for partial recoupment of capital expenditures. The exemption is triggered only if there is a physical increase in assessed value resulting from the improvements. For most projects, the exemption term is 14 years; however, government-assisted projects are eligible for a 34-year exemption.
The eligibility requirements have become more stringent in recent years. Nevertheless, this is still a viable long-term benefit that should not be overlooked when any major improvements are being planned.