Extends the deadline for applications for tax abatements for industrial and commercial construction work in cities having a population of 1 million or more

2 Co-sponsors

• Tony Avella
• Martin J. Golden

BILL NUMBER:S3090

Title of bill

An act to amend the real property tax law, in relation to applications for tax abatements for industrial and commercial construction work on properties in a city of one million or more persons

Summary of provisions

Bill section one amends paragraph (a) of subdivision 1 of section 489-dddddd of the Real Property Tax Law to extend the sunset date of the Industrial and Commercial Abatement Program ("ICAP") from March 1, 2011 to March 1, 2015.

Section 2 of this bill adds a new subdivision 3 to section 489-dddddd to provide that no benefits will be granted for construction work unless the first building permit was issued on or before April 1, 2015, or, if no permit was required, unless construction commences on or before April 1, 2015.

Reasons for support

ICAP was enacted by Chapter 119 of the Laws of 2008 to replace the Industrial and Commercial Incentive Program ("ICIP") to create significant new economic activity at the lowest possible cost. This bill will extend ICAP for an additional four years. The bill also closes a loophole in the law that appeared to allow for indefinite eligibility once an application was filed and approved, in that the law did not include a deadline for obtaining a first building permit. As the law presently reads, if a preliminary application for benefits was timely filed, an applicant would be able to delay construction indefinitely. This bill will add a provision to require timely commencement of the project.

Accordingly, the Mayor urges the earliest possible favorable consideration of this proposal by the Legislature.

Effective date

Immediately.