REAP Explained: How to Save $3,000 per Employee When Moving to Brooklyn
August 13, 2025
Relocating your business from Manhattan to Brooklyn is a strategic financial decision that can save your company hundreds of thousands of dollars. The Relocation and Employment Assistance Program (REAP) is one of the most valuable incentives available to businesses making this move, offering substantial tax credits that dramatically reduce your effective rent costs.
What Is REAP?
REAP provides NYC business income tax credits to companies that relocate employees from outside New York City or from below 96th Street in Manhattan to eligible areas in Brooklyn and other outer boroughs. The program was designed to encourage business growth in underserved areas of the city and has been helping companies save money since 1987.
The benefit is significant: eligible businesses receive an annual tax credit of $3,000 per employee for up to 12 years when relocating to designated revitalization areas, which include most of Brooklyn's commercial and industrial zones (C4, C5, C6, M1, M2, or M3). These credits are refundable for the year you move and the next four years, with unused credits carried forward for up to five years.
How much can a company save with REAP?
Consider this example: A company with 30 full-time employees relocating from Manhattan to a 5,000-square-foot office in Brooklyn with an asking rent of $52 per square foot would typically pay $260,000 annually. With REAP, they receive a $90,000 benefit check from the city ($3,000 × 30 employees), effectively reducing their rent to just $34 per square foot—a total annual cost of only $170,000. That's a 35% reduction in occupancy costs that continues for 12 years.
Who is eligible for REAP?
To qualify for REAP, your business must have operated outside NYC or below 96th Street in Manhattan for at least 24 continuous months before relocating. Your lease must run at least three years past the later of the lease start date or relocation date, and you must spend more than $25 per square foot on improvements.
Most retail and hotel services are not eligible, though online, mail-order, and telephone sales may qualify. The program requires moving at least one employee to the new location, and you must file annual certifications via e-Services to continue receiving benefits each year.
The program has recently been extended through June 30, 2028, providing businesses with confidence in long-term planning.
Two Trees: Your Partner in Maximizing Incentives
Our experienced team has helped hundreds of businesses successfully apply and get approved for REAP and other Brooklyn incentive programs. From initial application to annual recertifications, we guide you through every step—navigating requirements, preparing documentation, and ensuring you maximize every available benefit.
Additional Brooklyn Benefits
REAP is just one of several advantages to locating your business in Brooklyn. Companies with offices in Brooklyn are also exempt from the Commercial Rent Tax (CRT), providing additional significant savings. Learn more about Brooklyn's Commercial Rent Tax exemption here.
Ready to explore how much your business could save by relocating to Brooklyn? Contact our Two Trees commercial leasing team to discuss your eligibility and learn how we can help you access these valuable incentives.
