Industrial And Commercial Abatement Program (ICAP)

Note: Certificates of Continuing Use (CCU's) will not be required for the 2009/2010 Tax Year.

The ICIP program has been replaced by the ICAP program. ICAP was signed into State law by Governor Paterson on June 30th, 2008, and signed into NYC law by Mayor Bloomberg on October 10th, 2008.  The New State Law is effective as of July 1, 2008.

For transition details about the eligibility for ICIP applications made prior to July 1, 2008, download NYS Legislation.

ICAP provides abatements for real property taxes for varying periods up to 25 years.  Eligible industrial and commercial buildings must be built, modernized, expanded, or otherwise physically improved.

Eligibility
Filing Requirements
Deadlines
Forms & Applications
2009/2010 ICIP Exempt Properties
Contact Information
Additional Information

Eligibility

Location
To be eligible for commercial New Construction benefits, an applicant may build anywhere in New York City except in Manhattan, south of the centerline of 96th Street and north of Murray, Frankfort, and Dover Streets.

To be eligible for benefits for commercial Renovation, applicant must expand, modernize, or improve an existing structure anywhere in the City.  Excluded is the area in Manhattan, between the centerline of 59th Street and the centerline of 96th Street.

Below 59th Street, specific commercial Renovation benefits are available in three areas:

• Garment Center District
• an area in lower Manhattan bounded generally by Murray Street, South Street, Battery Place and West Street; and
• the remainder of Manhattan below 59th Street.

Expenditures
Applicants must make a minimum required expenditure (MRE) equal to at least 30 percent of the Taxable Assessed Value of the property in the year the building permit was first issued or, if no permit is required, at the start of construction.

ICAP also provides an additional tax abatement benefit for industrial construction projects that meet a higher MRE (40 percent).

The MRE must be made no later than four years from the date the building permit was first issued. However,  if no permit is required, the MRE must be made from the start of construction.

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Filing Requirements

Applicants are required to:

• File both a (1) Preliminary and (2) Final Application for Certificate of Eligibility. 
• Obtain a Building Permit

• A Preliminary Application must first be submitted before obtaining a building permit.
  
  Note: You will NOT receive benefits if you get your permit before filing an
  ICAP Application.
   
• If no building permit is required for the construction, applicant must submit a notarized
  letter from the project's architect or engineer notifying the Department within
   thirty calendar days of the end of construction.

• Submit a Final Application for benefits no later than one year from the date the first building permit was issued for construction work.  If construction work does not require a building permit, filing must be within one year from the starting date of  construction. 
• File all required annual Income and Expense Statements (RPIEs) for the property.
• Report all current construction to Finance semi-annually. This is required during the entire construction or renovation period until completion. 

Limitations on Eligibility for Certain Types of Property 

• Utilities: No benefits are permitted for Utility Company property used in the ordinary course of business. The land and buildings owned by a Utility are also ineligible.
• Retail: A property may be subject to different abatement schedules based on the percentage used for retail.  

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Benefit Schedules

Deadlines
The Preliminary Application must be filed before obtaining a building permit.  If no permit is required the application must be submitted before starting construction. Under the law, ICAP applications filed after construction begins or a building permit is issued must automatically be denied. 

The Final Application must be filed within one year after the permit is issued.

Forms & Applications

Preliminary Industrial and Commercial Abatement Program
Preliminary ICAP Application and Instructions
 Download Application (78k)

Final ICIP/ICAP Application
Download Application (63k)

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2009/2010 ICIP Exempt Properties (Descriptive Data as of Final Roll 09/10) (Building Class Data as of Final Roll 09/10)	Adobe PDF	MS Excel
Manhattan	51k	152k
Bronx	63k	191k
Brooklyn	137k	459k
Queens	132k	459k
Staten Island	48k	143k

Contact Information
For program policy and eligibility questions, contact
Email ICAP Program

For application status, contact
Email ICAP Program

Additional Information 
Frequently Asked Questions (FAQ's)
Transition from ICIP to the New ICAP Program

Other Resources
NYC Economic Development Corporation
NYC Department of Small Business Services