(Industrial Commercial Abatement program) is designed for commercial construction projects including alteration, new development or any types of physical improvement done to the property.
ICAP for New Buildings:
ICAP is filed when developing a new building. The entire building increase that is applied to the taxable assessed value due to the physical improvement, will be offset 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 abatement.
ICAP for Alteration:
ICAP is filed when a building is being renovated, modernized, or any other physical improvement is done to the property. For alterations, ICAP will offset part of the building increase that is applied to the taxable assessed value due to physical improvement 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 abatement.
As per the rules and regulations by the NYC DOF the ICAP preliminary filing must be filed prior to the issuance of the construction permits. Failure to comply, results a loss in the ICAP eligibility.
Department of Labor Services Requirements:
As per the Rules & Regulations by the Division of Labor Services (DLS), and in order to obtain ICAP benefits, Projects that exceed the hard construction cost of $2.5 million or more, compliance with federal, state, and local equal employment opportunity obligations is required. DLS will monitor the employment policies throughout the construction period to determine that the ownership and contractors maintain nondiscriminatory hiring and employment practices. In addition, projects are required to include and promote Minority Firms (M/WBE) in their workforce.
Metropolitan Realty Exemptions will guide you through the entire process, from start to finish, up to the Implementation of the ICAP benefits.