Eligible Construction Work.
19 RCNY § 36-06
in effect§ 36-06 Eligible Construction Work.
a. For purposes of determining the minimum required expenditure, the abatement base and all other purposes, construction work will be eligible for tax abatement benefits under this program if the work is:
(1) A permanent capital improvement to real property with a useful life of at least three years;
(2) Described or integrally related to work described in the approved plans or narrative description submitted as part of the application;
(3) Performed during the construction period which is five years after issuance of the first building permit, or if no permit was required, after the commencement of construction; and
(4) Not rendered ineligible by any provision of law or these rules, or by any agreement made as part of the application.
b. Renovations. Renovations that are eligible construction work for abatement benefits include, but are not limited to, the following, provided that such renovations are deemed to enhance the value of the property:
(1) Renovations that increase the square footage or cubic content of an existing building; or
(2) Modernization of core facilities including:
(i) Upgrading of electrical and plumbing systems;
(ii) Installation of new elevators and elevator banks;
(iii) Renovation or new installation of the exterior of a structure;
(iv) Major upgrading of lobby space;
(v) Reconfiguration of multi-tenant floor space to single tenant space;
(vi) Installation of central HVAC systems;
(vii) Major abatement of asbestos contamination;
(viii) Conversion of obsolete office space into functional space; or
(ix) Major conversion of a building's use involving structural changes.
c. Work not deemed to be eligible construction work. Construction work that is not eligible for tax abatement benefits pursuant to this section includes:
(1) Ordinary repairs, replacements or redecoration;
(2) Placement of personal property that remains personal property;
(3) Extension of streets, sewers, water or utility systems to a site not provided with such services; or
(4) Installation of satellite dishes, billboards, or cellular and microwave antennae.
d. Earthwork or partial demolition. Earthwork or partial demolition will be included in the construction work on a project if the following two conditions are met:
(1) the earthwork or partial demolition is integrally related to the other construction work on the project and is commenced not more than one year after the date that a preliminary application was filed; and
(2) the applicant requests inclusion of the earthwork or partial demolition in the preliminary application or a subsequent notice filed at least 15 business days before the commencement of the earthwork or partial demolition and before a permit for the earthwork or partial demolition is issued.
e. In the case of an abandoned project, only construction work that is the subject of a newly issued or renewal permit will be eligible for abatement benefits. Eligible construction for an abandoned project will qualify for benefits only if it is the subject of a preliminary application filed prior to the date on which the new or renewal permit was issued.
f. Construction work that is part of a project which is the subject of an approved application may not be considered eligible construction work for a future application for tax abatement benefits for the same property, building or structure under this chapter.
g. (1) No ICAP benefits will be granted for residential construction work, or for work on a structure or building where 20 percent or more of the rentable square footage of such property is or will be dedicated to residential purposes, provided however that where less than 5 percent of a property's rentable square footage is or will be dedicated to residential purposes, that use will be considered negligible and will not be considered in determining ICAP benefits.
(2) Notwithstanding Paragraph (1) of this subdivision, where a building or structure is owned in condominium form, and an application for benefits under this chapter includes more than one property in the same condominium, then for purposes of this paragraph, the 5 percent and 20 percent of the rentable square footage shall be determined based upon the aggregate usage of all such properties.
h. Notwithstanding the foregoing, for purposes of determining whether a project is completed within the time required to secure the inflation protection benefits described in 19 RCNY § 36-10(l), eligible construction work may include construction work done more than four years, but not more than five years, from the date of the issuance of the first building permit or from the start of construction if no permit was required.
i. Parking facilities.
(1) No benefits shall be granted for construction work on real property where any portion of such property is used as a parking facility, except where a parking facility is associated with residential construction work on a separate tax lot and such residential construction work is subject to financial assistance from the department of housing preservation and development.
(2) A parking facility is associated with residential construction work in a building or structure if:
(i) the department of housing preservation and development certifies to the department that the residential construction work is receiving financial assistance from the department of housing preservation and development;
(ii) the developer of such parking facility executes an affidavit stating that the number of parking spots included in such parking facility does not exceed the number of dwelling units included in such building or structure; and
(iii) the applicant demonstrates that it meets two or more of the following three clauses:
(A) such parking facility and such residential construction work are in separate tax lots within the same building or structure;
(B) the developer of such parking facility executes an affidavit affirming or the department of housing preservation and development certifies that the creation of such parking facility will generate parking that is necessary to satisfy requirements under the zoning resolution for off-street parking accessory to such residential construction work; and
(C) either (i) the developer of such parking facility executes an affidavit affirming or the department of housing preservation and development certifies that the construction of such parking facility and such residential construction work were authorized or financed as part of the same transaction; or (ii) the developer of such parking facility executes an affidavit affirming that such parking facility will offer preferential rates or exclusively offer parking facility services to residents of the residential building that will be constructed as part of such residential construction work.
j. No benefits shall be granted for construction work on real property where any portion of such property is to be used as:
(1) a self-storage facility; or
(2) a storage warehouse.
(Added City Record 2/10/2017, eff. 3/12/2017; amended City Record 10/6/2025, eff. 11/5/2025)
Source: City of New York, Charter, Administrative Code and Rules (American Legal Publishing XML export, codelibrary.amlegal.com)URL: https://codelibrary.amlegal.com/codes/newyorkcity/latest/NYCrules/0-0-0-96883Fetched: 10/24/2026