M-CORE program offers tax incentives to update aging Manhattan office space – deadline to apply for full tax abatement is August 1

The New York City Economic Development Corporation and New York Industrial Development Agency recently announced the Manhattan Commercial Revitalization Program (M-CORE) in an effort to increase commercial tenant occupancy below 59th Street in Manhattan by offering certain tax incentives to upgrade aging office space.

M-CORE benefits

The principal benefits of the program are:

• Real property tax abatement of up to 20 years
• Mortgage recording tax reduction from 2.8 percent to 0.3 percent
• Sales and use tax exemption on construction materials

M-CORE eligibility

The eligibility requirements include:

• The building is located below 59th Street in Manhattan
• The building consists of at least 250,000 square feet and was built prior to 2000
• A minimum capital investment equal to 75 percent of the building’s current assessed value. Completed projects do not qualify

Limited availability – off to the races

M-CORE is limited to 10 million square feet in total. The criteria for selection include project readiness, whether the project will be transformative and the plan to attract tenants. The first 2.5 million square feet of selected buildings will receive a 100 percent property tax abatement on improvements for 20 years, with a phase out of 20 percent per year over the last four years. The balance of selected buildings will receive smaller abatements.

A pre-application is currently available; the deadline is August 1 to be considered for the full tax abatement. Visit this page to access the pre-application.

For more information about M-CORE, please contact either of the authors.