To qualify, Industrial and commercial buildings must be built, modernized, expanded, or otherwise physically improved.
ICAP for New Buildings:
If an ICAP is being filed on a vacant land for the purpose of developing a new building, the entire
increase due to the construction will be offset by the ICAP for the life of the program. The ICAP will
run for a duration of 15 – 25 years, depending on the property’s location and commercial usage, with a
10% – 20% phase out over the last few years of the life of the benefits.
ICAP for Alterations:
In the event of a rehab alteration of an existing building, the ICAP will freeze the taxes to the
assessed value prior to the issuance of the construction permits, with a 15% increase due to the
physical improvement. The ICAP will run for a duration of 15 – 25 years, depending on the property’s
location and commercial usage, with a 10% – 20% phase out over the last few years of the life of the
benefits.
As per the rules and regulations by the NYC DOF the ICAP preliminary filing must take place prior to the issuance of the construction permits. Failure to comply, may result in the loss of the ICAP benefits.
Dept. of Labor Services Requirements
As per the Rules & Regulations by the Division of Labor Services (DLS) and in accordance with the
obtainment of the ICAP benefits for projects for which the hard construction costs are $2.5 million or
more, it is required compliance with federal, state, and local equal employment opportunity obligations.
The requirements include the submission of an Employment Report, for the owner, containing information of the employment policies and practices and workforce composition. Subsequently, the DLS will analyze the report to determine if the contractor maintains nondiscriminatory hiring and employment practices. In addition, it is required that every subcontractor, whose contract is less than a million, submits a less than a million affidavit. If the amount remitted to the subcontractor exceeds $1 million, an employment report will be necessary, as well as monthly payroll records for all of his employees.
The Dept. of Labor Services also requires the solicitation of minority firms (MWBE) for each trade. 3 minority firms should be solicited for each trade.
We at Metropolitan Realty Exemptions will guide you through the entire process up to the obtainment of the DLS approval letter.
