We obtain max tax benefits for new construction and rehabilitation projects under 421A(16), also known as Affordable New York Housing Program; ICAP, also known as the Industrial Commercial Abatement Program; and other incentive programs.

Our knowledge
is your power

It may sound simple, but good, trusted counsel is the result of data and experience. As a tax certiorari-based firm, we don’t just guide you through the tax incentive process. We educate you with rich, hard-won information before taking action.

Part of our passion is to deliver honest recommendations. We believe thorough situational analysis saves time and effort for everyone involved, helping avoid exemption filings that are destined for negative results. Indeed, knowledge is not merely a valuable asset for our clients—it defines RE Tax Service!

The 421A (16)

Affordable New York Housing Program (ANYHP)

Maximize the gains on your next residential project with the 421A (16) exemption. We take pride in assisting real estate owners and developers navigate the intricacies of NYC’s property tax system and procure the program’s benefits.

The NYC Department of Finance, in cooperation with the NYC Department of Housing Preservation and Development (HPD), offers this program to property owners and developers, disburdening them of their property tax liability for a period of 35 years above base tax, thus allowing them substantial savings.

A residential property may qualify for the 421A (16) exemption if it has undergone new construction or rehabilitation and therefore assessed at a higher value.

Qualified properties are subject to a 3-year construction period tax exemption, followed by a 35-year tax exemption (above base tax) post construction. For the first 25 years, a 100% exemption is secured, while for the ensuing 10 years, these properties benefit from a 25%-30% exemption, depending on the affordability option selected. Click for full requirements. What better benefit that staying with significant assets in your bank account?

To qualify for the exemption in compliance with the HPD requirements, and in exchange for the infinite property tax incentive, a percentage of the rental project must be allocated as affordable units for mid-high income tenants.

Projects above 300 units located in enhanced areas are qualified to receive a 35-year post-construction 100% exemption above the base tax. However, the project(s) must meet the construction wage requirements.

We look forward to discuss your upcoming project’s details and the available affordability options in depth.

The Condo

While rental projects can receive up to 35+ years in tax exemption, condo projects can benefit of 20+ years in capped tax relief.

The average assessed value per condo unit of the condo project(s) must not exceed $65,000 upon initial post-completion. The 20-year capped benefit includes a tax exemption (above base tax) throughout the construction period of up to 3 years, followed by an exemption of 14-20 years.

To benefit from a 100% exemption (above base tax) in years 1-14, the average assessed value per unit must not exceed $65,000 throughout the term. Otherwise, property taxes will be levied on the residual assessed value above the $65,000 cap.

A condo project is bound to receive 25% in tax exemptions for the subsequent 6 years so long as the average assessed value (per unit) is below $65,000. Correspondingly, property taxes will be levied upon the residual assessed value above the $65,000 cap.

Additionally, each condo owner is obligated to maintain their unit as a primary residence for at least 5 years from acquisition.

How we untangle the knots
and show you the ropes

to ensure your obtain the maximum available tax benefits

The Industrial &
Commercial Abatement
Program (ICAP)

Industrial and Commercial projects subject to alteration, renovation or new construction may be eligible for the Industrial and Commercial Abatement Program (ICAP) property tax abatement.

The abatement offers a maximum of 25 years in tax abatement for eligible projects, depending on its location and property usage. The ICAP benefit base (benefit amount) is the difference between 115% of the building’s transitional/taxable value (excluding the land value) of the taxable status date prior to construction, and the building’s transitional/taxable value of the first taxable status date after completion of construction. The benefit amount would only be applied to the commercial part of the building excluding the land values.

Although the ICAP benefit opportunity is immensely favorable in most cases, we suggest the developer to consider the requirements prior to applying. We look forward to guide you through the abatement details.

RE Tax Services takes great joy in assisting and supporting our clients throughout the process. From scratch to savings, we assist you throughout the full process, including complying with all filing requirements and DLS requirements. We guarantee you a smooth ride until the destination is reached successfully with your cooperation.