Incentives
Whether you are a tech startup or a large established firm, moving your office to Brooklyn makes you eligible for lucrative financial incentives. Please contact our Two Trees commercial leasing team to learn more about how your company can qualify.
Relocation Employment Assistance Program (REAP)
REAP
Relocation Employment Assistance Program
$25
Up to $25 per Square Foot to Tenants
$3000
Annual benefits for each full-time employee
This city program benefits companies relocating to Brooklyn from Manhattan (below 96th St) or outside of NYC, by providing $3,000 annually for each full-time employee. Eligible companies must sign an office lease for at least a 3-year term and may collect the REAP benefits for up to 12 years. Companies may redeem their REAP benefits as a tax credit against city taxes, however, in the case of start-ups or small businesses not generating sufficient taxable income, REAP benefits may be collected as a direct payment from the city.
Calculate how much you can save with REAP by relocating to Brooklyn.
EXAMPLE: A Manhattan-based company relocates their office with 30 full-time employees from Manhattan to DUMBO. The asking price for the 5,000 SF office is $52.00 PRSF, which is $260,000 in rent a year. Shortly after submitting an annual NYC tax filing, they receive a REAP benefit check from the city for $90,000 ($3,000 x 30); thus reducing the rent from $52.00 PRSF to $34.00 PRSF and their annual total from $260,000 to $170,000.
Thank you!
Please find your projected REAP savings.
Your annual projected reap savings
Your full term projected reap savings
You may qualify for several other New York City and New York State as-of-right and discretionary incentives including but not limited to, an exemption of Commercial Rent Tax and ICAP. Please contact our Two Trees Leasing term to learn more about incentives or visit the following pages: New York City Economic Development Corporation (EDC) Empire State Development (ESD)
Commercial Rent Tax (CRT)
CRT
Commerical Rent Tax
Reduced Property Tax
Avoid a 3.9% rental tax charged to tenants paying more than $250K per year in rent in Manhattan business districts
Brooklyn office tenants are exempt from the NYC Commercial Rent Tax, which imposes a tax of 3.9% on tenants paying more than $250,000 rent per year, in most office districts in Manhattan.
EXAMPLE: A tenant in Midtown Manhattan and a tenant in Williamsburg, Brooklyn both pay a $300,000 annual rent payment. The Midtown tenant is required to pay the Commercial Rent Tax of $11,700 ($300,000 x .039%) while the Brooklyn tenant is exempt from this payment.
Industrial & Commercial Abatement Program (ICAP)
ICAP
Industrial & Commercial Abatement Program
25 Years
This city program reduces property tax obligations by up to 25 years
This city program reduces property tax obligations for up to 25 years, subject to overall capital improvements. This program benefits tenants by keeping their percentage of real estate tax obligations to a minimum.