NYC’s Industrial and Commercial Abatement Program (ICAP) Gets a Four-Year Extension

A significant advancement for real estate and construction in New York City has emerged as the New York State Legislature has approved a bill extending the New York City Industrial and Commercial Abatement Program (ICAP) from its previously scheduled expiration of March 1, 2025, to March 1, 2029. Following its approval by the Senate and Assembly on June 6, 2024, the bill now awaits the governor’s endorsement to take effect.

ICAP offers partial property tax abatements for eligible commercial and industrial properties for up to 25 years. This program is designed to encourage new construction, modernization, and expansion across the five boroughs, except certain areas in Manhattan. However, industrial projects remain eligible throughout the city.

To qualify for ICAP, property owners are required to submit a preliminary application by the new deadline of March 1, 2029, and secure a construction permit by April 1, 2029. This extension grants developers extra time to leverage the program, which has proven to be a crucial driver of economic development in the city.

While the program’s terms remain unchanged except for the deadline extension, it is essential for developers to adhere to its guidelines, including labor requirements and tax escalation clauses within commercial leases.

For an evaluation of your project’s eligibility and detailed compliance advice, it is recommended to consult with Ryan’s professionals, who are experienced in ICAP and New York City’s property tax incentive programs.