Lower Manhattan Relocation and Employment Assistance Program for Special Eligible Businesses (LMREAP-SEB)

The program offers an annual credit of $3,000 for twelve years per eligible aggregate employment share (EAES) for relocating to an eligible location. The number of eligible aggregate employment shares is roughly the same as the number of full-time employees working at the eligible location. There are some limitations.

The credit may be taken against the following:

• General corporation tax
• Banking corporation tax
• Business corporation tax
• Unincorporated business tax
• Utility tax

Credits are refundable for the year of relocation and the next four years. Unused credits from subsequent years may be carried forward for five years.

You can view a map of the eligible area.

The LMREAP-SEB area lies south of a line running from the intersection of the Hudson River with the Holland Tunnel, north along West Street to the intersection of Clarkson Street, east to the intersection of Washington Street, south along the centerline of Washington Street to the intersection of West Houston Street, and east along the centerline of West Houston Street. At the intersection of the Avenue of the Americas, the line continues east along the centerline of East Houston Street to the easterly bank of the East River.

• Must have conducted substantial business operations outside of New York City for at least 24 consecutive months immediately preceding the taxable year of relocation
• Must relocate to eligible premises on or after June 30, 2005
• Must have had employees in Manhattan between January 1, 2002, and the date it enters into a contract to lease or purchase the relocation site
• The eligible business must move at least 250 employees or a sufficient number of employees to increase its payroll in the city by 25%.

Most retail activities and hotel services are not eligible. However, internet sales and sales by mail or telephone may be eligible.

The premises must meet the following criteria:

• Must be nonresidential
• Must have been improved by construction or renovation
• Expenditures for improvements to the property must be more than 50% of the assessed value for commercial properties or more than 25% of the assessed value for industrial properties.
• Contract or lease must be entered into after June 30, 2005
• Expenditures for improvements must have been made after June 30, 2005.

In addition, the premises must meet either the following property criteria or premises criteria.

Property criteria:

• Eligible for the Industrial and Commercial Incentive Program (ICIP)—note that properties receiving the Industrial and Commercial Abatement Program (ICAP) does not confer REAP eligibility
• Leased from the New York City Industrial Development Agency
• Owned by the City of New York
• Leased from the Port Authority or New York State Urban Development Corporation

Premises criteria:

• If leased, the term of the lease must be at least three years from the lease start date or the date of relocation, whichever is later.
• Expenditures for improvements to the premises must be more than $25 per square foot.

LMREAP-EB (Eligible Businesses) may be available to businesses that did not have employees in Manhattan before the relocation.

Applicants must submit a completed LMREAP application and all required supporting documentation. Annual certifications are required to determine the amount of LMREAP benefit for each of the twelve years. Please file an application for a certificate of eligibility of designated premises (REAP-ADD) for additional or replacement premises.

The application deadline has been extended to June 30, 2028. You must file for annual re-certification for each eligible year.

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