Commercial Expansion Program (CEP)

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Commercial Expansion Program (CEP)

View Benefits Online

The Annual CRP/CEP Renewal Application period starts April 2024. The Filing deadline is July 1, 2024.
Please see below for renewal applications.

The Commercial Expansion Program (CEP) program is designed to increase tenant occupancy in commercial offices and industrial/manufacturing spaces. CEP provides property tax benefits for qualified new, renewal, and expansion leases in commercial offices and industrial/manufacturing spaces built before January 1, 1999. The properties must be located in a designated abatement zone. Applicants are also required to make certain minimum physical improvements to the eligible premises and the common areas.

Frequently Asked Questions

What specific types of "expenditures" can be attributed to the required threshold?

Eligible expenditures must be permanent, capital improvements to real property with a useful life of at least three years. This includes construction work such as electrical, plumbing, HVAC, drywall partition and associated painting, building-wide cabling/wiring, elevator and lobby work. Architectural and engineering costs to support such capital improvements are also eligible. It does NOT include expenditures for personal property like furniture including cubicles, computers and associated cabling/wiring, shelving or storage units. Expenditures for ordinary repairs, maintenance, replacements or decorations are also not eligible.

What common area investments can be claimed? What percentage of an overall building's common area investments can an individual tenant claim? How far back can the investments be claimed?
All common area expenditures that meet the definition of eligible expenditures can be claimed. There is no limit on the percentage of common area expenditures that may be applied to an individual tenant. However, a specific common area expenditure may not be applied to more than one tenant. Expenditures on common areas can be claimed no earlier than 3 years before the lease commencement date.

If a lease has an "out-clause" (voided under certain circumstances), can you apply for benefits?

An eligible lease may not have an early-out clause within the CEP benefit period by either the landlord or tenant. The only exceptions are when:

the eligible premises are damaged or destroyed by fire or casualty;

the eligible premises are rendered unusable for any reason not attributable to any act or failure of either tenant or landlord;

the eligible premises are acquired by eminent domain; and

the tenant or landlord is in default of any of such party's obligations under the lease.

Why does it have to be a pre-1999 building?

The legislation governing the program defines an eligible building as a non-residential or mixed-use building located in the eligible abatement area that received its initial certificate of occupancy or initial temporary certificate of occupancy prior to January 1, 1999. Where an otherwise eligible building has increased its square footage subsequent to January 1, 1999 such additional space is not eligible for benefits pursuant to this program.

How will I know how much the landlord is supposed to be passing on?

Benefits are issued as a credit on the landlord's tax bill. You can locate a summary of benefits on the CEP homepage link, under the “View Benefits Online” heading.

How long does this program run?
The program is due to sunset June 30, 2020. This means that a lease must commence by this date and an application must be postmarked no later than 180 days from Lease Commencement.

Benefit

Three or Four-Year Leases
In the initial year, the tax abatement is equal to the actual property tax liability per square foot or $2.50 per square foot, whichever is less. It is equal to two-thirds the initial amount in year two and one-third in year three.

Leases of Five or More Years

The abatement lasts for five years. In years one, two and three it is equal to the actual property tax liability per square foot, or $2.50 per square foot, whichever is less.

The abatement is equal to two-thirds the initial amount in year four and one-third in year five.

Leases of up to Ten Years (Manufacturing Only)
The abatement lasts for up to ten years depending on the lease. There is no phase out. The same expenditure requirements (see above) as commercial CEP apply and must include a description of the beginning raw materials and final product(s) manufactured.

Benefit

Lease Term
Abatement Period
Year 1
Year 2
Year 3
Year 4
Year 5

3 - 4 Years
3 Years
Property tax liability or $2.50 per sq. ft. whichever is less
2/3 of initial abatement
1/3 of initial abatement
Abatement Expires

5 Years
(Commercial)
5 Years
Property tax liability or $2.50 per sq. ft. whichever is less
2/3 of initial abatement
1/3 of initial abatement

5 Years or more (Manufacturing)
5 Years or more
Property tax liability or $2.50 per sq. ft. whichever is less

Eligibility

Location
Manhattan (north of 96th Street zoned C4, C5, C6, M1, M2, or M3) and all areas in the Bronx, Brooklyn, Queens and Staten Island. CEP Manufacturing within the Garment District: West 34th & 9th to West 39th & 9th and West 34th & Broadway to 40th & Broadway.

Lease Term
If companies have fewer than 125 employees, the lease term must be for at least 3 years; if there are more than 125 employees, the lease term must be for at least 10 years.

Eligible Properties
The property must be classified as a non-residential or mixed-use building built before January 1, 1999.

Properties occupied by or used for retail, hotel, or residential purposes are not eligible.

Required Physical Improvements
Improvements to common areas and the eligible premises are required. Please see below for the required minimum spending on improvements.

Minimum Cost of Improvements

Lease Type
Less than 125 employees
More than 125 employees

New
$2.50 per sq. ft. of net leasable space
$25.00 per sq. ft. of net leasable space

Renewal
$2.50 per sq. ft. of net leasable space if previously occupied
$5.00 per sq. ft. for all applicable net leasable space if previously occupied

Expansion
$2.50 per sq. ft. of net leasable space
$25.00 per sq. ft. of net leasable space

Proof of Improvements

Spending on improvements under a lease renewal must occur within the three-year period prior to the start of the Renewal lease and up to 14 months after the tenant's rent commencement date.

Spending on improvements under New and Expansion leases must occur within the three-year period prior to the start of the lease and up to 60 days after the tenant's rent commencement date. Benefits cannot begin until one month after the rent commencement date.

Initial Application Requirements
A completed Commercial Expansion Program Application must be submitted within 180 days of the lease start date. CEP benefits will be denied if an application is received after the 180th day. Please refer to the Commercial Expansion Program (CEP) Application for instructions, information about other requirements and filing deadlines.

Once a property is approved for CEP, the applicant/representative will receive a Notification of Eligibility which includes your application number. You should keep the application number for future reference. Please notify us right away if you have any questions or see any errors on the notice.

New and Expansion Leases
Must provide:

proof of the number of employees (within 60 days of the first required rent commencement date); and

proof of expenditures - a copy of the invoices of your expenditures and cancelled checks must be mailed along with this form (within 60 days of the first required rent commencement date).

Renewal Leases
Must provide:

proof of the number of employees (within 60 days of the first required rent commencement date); and

proof of expenditures - a copy of the invoices of your expenditures and cancelled checks must be mailed along with this form (within fourteen months of the first required rent commencement date).

Forms

CEP Commercial and Industrial/Manufacturing Expansion Programs Application
(includes Proofs of Employment and Expenditures forms)

CEP Owner Renewal Application (Online)

CEP Tenant Renewal Application (Online)

General Forms

Computer Data Request - Use this form to request computer data. Upon completion of Parts A, B and C, fax this form to the Department of Finance, Legal Affairs Division.

Power of Attorney POA-1 - These instructions explain how the information entered on this power of attorney (POA) will be interpreted and the extent of the powers granted.

Military Request for Relief (from Lien Sales, ECB and Parking Judgments, and Tax Warrants)

Renewing your Abatement

To keep this benefit, you are required to submit an annual CERP Renewal form via SmartFile.

The 2024/25 Renewal Period has started. All submissions will be accepted until July 1, 2024.

Owner Application

Tenant Application

Online Renewal User Guide

Renewal Form FAQs

Section 1. General Information

Do I need to renew my CERP Tax Abatement?
Yes, any property that receives CERP abatement is required to fill out a renewal form each year.

How do I renew our CERP Tax Abatement?
Both the applicant Tenant and applicant Owner should have received a letter from Finance in late April with details on how to submit a renewal form online. If you did not receive this letter please contact Finance or call 311.

Do I have to complete the form online?
No, but completing the form online will provide you with a confirmation email and a receipt of the submission of your records. Paper forms can be requested by contacting Finance. Please note, any paper forms must be submitted on or before July 1, with a certified mailing receipt or official DOF time stamp from the Customer Business Center.

Why is it better for me to renew online?
When you renew online, we send you a confirmation email that we received your form. This gives you a record of receipt to keep for your files.

Section 2. Logging Into the Application Form

How do I access the online renewal application?
Visit CRP Renewals and CEP Renewals.

What is my User ID and Password?
Your User ID and password are in the letter we sent you in April. If you do not have your letter, contact Finance or contact 311.

I do not have the letter the Department of Finance sent me; how do I get my User ID and password?
If you do not have your letter, contact Finance or contact 311.

I want to change my password. Can I?
Yes, click Change Password on the grey bar at the top of each screen and enter your desired password. Passwords are a minimum of six (6) characters including one letter or number.

I changed my password but I forgot what I changed it to. What do I do?
Click Forgot Your Password in the log-in box. Your password will be emailed to the email address you provided.

Section 3. Owner/Tenant Information

The Owner or Tenant name is spelled or abbreviated incorrectly. How do fix it?
Contact Finance or contact 311.

What if there is a change in Building Ownership?
If there is a change in building ownership, contact Finance or contact 311. Please attach the lease transfer and be sure that the previously recorded building owner is referenced.

What if there is change in the Tenant occupying the space?
If there is a change in the tenant occupying the benefitting space, please contact Finance or contact 311.

I submitted the Contact Information incorrectly and I need to change it. What do I do?
Click Profile Information in the grey bar at the top of the screen. You will be able to change contact information as well as mailing address.

I received more than one User Name and Password for a single application. Why?
Please contact Finance or contact 311.

Will each party know if the other party completed their portion of the renewal form?
No. Each party received a notification email and subsequent letter regarding the 2015 CERP renewal process. Each party has separate User ID and password credentials and must complete and submit their associated form.

What will happen if one of the participating parties, Tenant (representative) or Owner (representative) fails to complete the renewal form?
DOF will reach out to the delinquent party before a final revocation is enacted. A failure to respond to this outstanding notification will result in the indefinite revocation of the abatement benefits for the associated application.

Section 4. Property List

The property location address is incorrect. How do I fix it?
Contact Finance or contact 311. We will review the request.

The Owner is going to sell the building; do I still need to complete the renewal form?
Yes, if the subsequent owner wants to continue the abatement credited to the property, the renewal form must be submitted on behalf of the benefitting application.

The Tenant is going to vacate the entire premises; do I still need to complete the renewal form?
No. If the tenant has already or plans to vacate the premises during the 2020/21 tax year (July – June), please contact Finance. In the email body, please identify if you are the Building Owner (representative) or the Tenant (representative) and the vacancy date.

The Tenant is going to sublet the entire premises; do I still need to complete the renewal form?
Yes, there is a section on the form that requests information on any subleased portion of the benefitting premises. Be sure to provide the sublease agreement on the forms upload option.

What do I do if the Application Number is incorrect?
Contact Finance. We will review the request.

Section 5. The Form

Do I need to submit a complete form the first time I work on it?
No, you can save your work and come back later to complete the form.

I have additional information to provide. How do I do this?
Under the Tenant form, you can upload supporting documentation while completing the renewal. If you are the Owner or Tenant with additional documentation, you should contact Finance. Please note that only: .pdf, .jpg, .jpeg, .doc and .docx can be uploaded. Each file cannot exceed 5MB.

What do I do if I start uploading documents and cannot complete the upload because the system cannot accommodate them?
If you try to upload or attach a file format that is not accepted, you will see this message: Only .pdf, .jpg, .jpeg, .doc and .docx accepted.

What happens if I walk away from my computer and have not saved or submitted my form?
If you are in the middle of completing a form and get called away AND you do not save your work, the application will time out after one hour. This means your work will be lost. Remember to click Save & Complete Later if you are going to step away from your computer.

How do I know that my form was uploaded successfully?
A confirmation email will be sent to the email address you provided.

6. Can I print a copy of my renewal form?
Yes, once you have successfully submitted your renewal application you be given an option to print the form.

7. I answered YES to a question and a textbox opened. I typed my answer but am getting an error message. What did I do wrong?
You may need to type a longer response. All text boxes require at least 25 characters.﻿﻿

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