Credits To Move You
Posted by NYDEditor on July 15
The exodus from Manhattan to the outer boroughs in search of larger spaces, lower rents, room for a bbq and "cred" has been going strong for more than a decade but design businesses still have an issue crossing bridges and tunnels.
Lower rents are tempered by farther distances from clients and supporting services in Manhattan, affecting most those businesses that customarily dedicate lots of face time to client interactions. There's also the suggestion - ephemeral, possibly unjustified - of trading down if you move away from the richer and more competitive central borough.
Would the promise of another kind of "cred" help things along?
New York City Economic Development Corporation's (NYCEDC) Relocation and Employment Assistance Program (REAP) sweetens inter-borough migration. REAP provides tax credits for businesses that relocate from outside of New York City or from Manhattan below 96th Street to either Manhattan above 96th Street or in Brooklyn, Queens, the Bronx or Staten Island.
The new property must meet a set of guidelines that include a minimum expenditure of $25 a square foot and renovation expenses of either 25% or 50% of the assessed property value. Investment in moving will reap (apologies) you:
- Tax credit of up to $3000 a year for (a) 12 years for each job relocated (b) each job added within 5 years of the relocation
- Application of credit against your general corporation tax, bank tax, utility tax or unincorporated business tax
Applications must be received by June 20, 2013 but as always, be an early bird. NYCEDC's info page gives a great breakdown of how much you'll get in return.

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