Tax Reduction & Rebate Programs

There are different types of tax reduction programs – exemptions, abatements and an annual property tax rebate. These programs reduce the amount of property tax a residential homeowner or commercial property owner must pay each year.

• Exemptions provide tax relief by reducing a property's taxable assessed value, that is, the portion of the assessed value to which the tax rate is applied.
• Abatements also reduce the amount of tax that is due, by giving a dollar credit against the actual tax liability.
• Rebates provide a refund to offset a portion of the tax already paid.

Individual Rebates, Exemptions, and Abatements

Tax Reductions for Individual Property Owners
The City and State of New York offer a number of tax reduction programs to qualified individual owners of 1-, 2-, and 3-family houses, condominiums, and cooperative apartments. Many homeowners are entitled to reductions in their property taxes, but do not receive them simply because they have never applied. These property tax exemption and abatement benefits, administered by Finance, include the New York State School Tax Relief (STAR) Exemption, the Senior Citizen Homeowners' Exemption (SCHE), the Veterans' Exemption, the Disabled Homeowners' Exemption (DHE), the Clergy Exemption, and the Cooperative and Condominium Tax Abatement.

Clergy Exemption
Clergy exemptions are available for 1-, 2- and 3-family homes that are owned by a minister of the gospel, priest, or rabbi of any denomination.

Cooperative and Condominium Tax Abatement
Developed to provide partial tax relief to owners or tenant-shareholders of Class 2 condominiums or cooperatives to reduce the disparity in taxes paid by residential property owners in Class 1 and Class 2.

Disability Rent Increase Exemption (DRIE)
The DRIE program offers qualifying renters with disabilities exemptions from rent increases.

Disabled Crime Victim and Good Samaritan Exemption
Designed to provide tax relief to disabled crime victims and good Samaritans who suffer a disability as a result of a crime and who must consequently modify a one-, two-, or three-family home to accommodate their special needs.

Military Request for Relief
Active duty military personnel may request relief from the Lien Sale, Tax Warrants, Environmental Control Board judgments, and parking judgments by completing an affidavit that provides information about their military service.

Property Tax Rebate
Intended to provide tax relief to individual home, cooperative or condominium owners in New York.

Senior Citizens Rent Increase Exemption (SCRIE)
Provides landlords of rent-regulated apartments with a credit offset against their property tax for rent increases not received in apartments with tenants age 62 or over who have limited incomes.

Veterans' Exemption 
Qualified veterans and certain family members are eligible for property tax exemptions up to 15% of their assessed property value.

Construction Exemptions and Abatements

421a
Enacted to promote construction of multi-family residential buildings with at least three dwelling units by providing a declining exemption on the new value created by the improvement.

421b
Developed to promote new one- and two-family housing construction by making home ownership more affordable to a larger segment of the population.

421g
Created to encourage the conversion of non-residential buildings in Lower Manhattan to residential use.

Commercial Expansion Program (CEP)
Enacted to promote the development of commercial and industrial areas outside of Manhattan's central business districts.
CEP Summary of Benefits

Commercial Revitalization Program (CRP)
Enacted to increase tenant occupancy in office and retail space in lower Manhattan and specified other areas of the City and encourage investment in older commercial space or conversion to residential use.
CRP Summary of Benefits 

Division of Alternative Management Program (DAMP)
Developed to return City-owned residential properties to private ownership.

Green Roof Abatement
Rules and guidelines regarding the new New York State law allowing tax abatements for "green roofs" will be posted by the end of this calendar year.

Industrial and Commercial Abatement Program (ICAP) (Replaces ICIP)
The ICAP program provides abatements of real property taxes for varying periods up to 25 years for eligible industrial and commercial buildings that are built, modernized, rehabilitated, expanded, or otherwise physically improved.

J-51
The J-51 Benefit was enacted to encourage the renovation of residential properties by granting partial tax exemption and abatement benefits.  These benefits can vary depending on the location of the property and the extent of improvements.

Lower Manhattan Relocation and Employment Assistance for Eligible Businesses (LMREAP-EB)
The Lower Manhattan Relocation and Employment Assistance Program (LMREAP) was developed in 2004 to offer eligible businesses business income tax incentives for relocating to the eligible lower Manhattan area from outside the City.  The eligible business must move at least one employee from premises outside the City to the eligible lower Manhattan area.

Lower Manhattan Relocation and Employment Assistance for Special Eligible Businesses (LMREAP-SEB)
The Lower Manhattan Relocation and Employment Assistance Program (LMREAP) for Special Eligible Businesses was created in 2005 to extend LMREAP business income tax incentives to eligible businesses that relocate to the eligible lower Manhattan area from outside the City. The eligible business must relocate at least 250 employees to eligible premises or a sufficient number of employees to increase its payroll in the City by 25%, whichever is fewer.

Relocation and Employment Assistance Program (REAP)
The Relocation and Employment Assistance Program (REAP) was enacted to encourage businesses to relocate from outside the City and from below 96th Street in Manhattan to above 96th Street in Manhattan or to one of the other four boroughs.  REAP offers business income tax credit for relocating to one of the eligible areas as defined above.  The tax credits are based on the number of qualified jobs connected to the relocation.

Solar Panel Abatement
Rules and guidelines regarding the new New York State law allowing tax abatements for solar electric generating systems will be posted by the end of this calendar year.

Urban Development Action Area Program (UDAAP)
Designed to encourage the construction of residential housing on formerly City-owned land in designated areas.

Institutional & Governmental Exemptions and Abatements

Government
Properties that are owned by the city, state, federal or foreign governments that are used for governmental purpose (i.e., maintaining offices or quarters for representatives of government) are entitled to a property tax exemption.

Industrial Development Agency (IDA)
The IDA is administered by the City’s Economic Development Corporation to provide tax exempt financing to stimulate business expansion and increase employment for manufacturing, industrial and not-for-profit corporations.

Not-for-Profit
Designed to defray or eliminate property tax for properties that are used for charitable, educational, medical, or other exempt purposes.