Tax Incentives for Relocating to Brooklyn
Companies that relocate to Brooklyn from Manhattan, whether start-ups or large firms, can access significant tax incentives up to hundreds of thousands of dollars. Our team has helped hundreds of businesses apply and get approved.
Relocation Employment Assistance Program (REAP)
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.
$25
Up to $25 per Square Foot to Tenants
$3,000
Annual benefits for each full-time employee
Calculate how much you can save with REAP by relocating to Brooklyn.
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.
Commercial Rent Tax (CRT)
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.
Reduced Property Tax
Avoid a 3.9% rental tax charged to tenants paying more than $250K per year in rent in Manhattan business districts