The New York City Economic Development Corp. (EDC) and Industrial Development Agency (IDA) have announced the Manhattan Commercial Revitalization tax incentive program, dubbed "M-CORE," to support the renovation of commercial office buildings in Manhattan below 59th Street.
The program will offer real property tax abatements that are more generous than the benefits available under the existing Industrial and Commercial Abatement Program (ICAP). Land and building taxes will be stabilized at 100% of pre-improvement value, and taxes on building improvements will be abated for 20 years (phased out in the last four years), compared with 10 or 12 years for ICAP. It will also offer partial mortgage recording tax exemptions and sales tax exemptions. To be eligible, buildings must be:
- Located in Manhattan south of 59th Street (excluding Hudson Yards and the area within the Penn Station General Project Plan area)
- Built prior to 2000
- At least 250,000 gross square feet in size
- Undergoing a capital investment with a cost of at least 75% of the current assessed value of the building and land
Selection of projects for the program will be based on several criteria, such as the scope of the proposed building modernization, consistency with the City's economic development priorities, and project readiness. The pre-application will be available on June 8 and will be due on Aug. 1.
EDC has provided a description of the program on its website.
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