If you own a property in New York City, you can qualify for a number of tax breaks that might substantially lower your property taxes.The local government offers programs called abatements to expand the economy, and improve quality of life. Let us talk about the most popular abatements in NYC and how you can use them to cut your property taxes as much as possible.
1. J-51 Tax Abatement
It is for owners who perform specific sorts of repairs or upgrades to their building, it offers property tax exemptions and bonuses. Major capital upgrades, condo conversions from rental properties, and renovations that adhere to local building requirements are all examples of eligible improvements.
2. 421-a Tax Exemption
It is a tax break given for new residential buildings in NYC. For brand-new construction, significant renovations, or the conversion of rental houses into condos, the program offers tax benefits for up to 25 years.
3. ICAP (Industrial and Commercial Abatement Program)
Businesses in specific industrial or commercial zones in NYC might receive property tax advantages thanks to the ICAP program. By providing tax breaks to companies that invest in capital expansions or renovations, the program aims to stimulate economic growth and the creation of new jobs.
4. Co-op and Condo Abatements
In NYC, buildings having residential units are eligible for co-op and condo abatements. If you own a Co-op or condominium you can benefit from the program's property tax benefits for up to 15 years.
5. Industrial and Commercial Incentive Program (ICIP)
The ICIP program provides property tax benefits to businesses in certain industrial or commercial zones in NYC. The program is designed to encourage economic growth and job creation by offering tax exemptions to businesses that make capital improvements or expansions.
To maximize your property tax savings, it's important to familiarize yourself with the various abatements available and determine which ones you may be eligible for. You can apply for these programs through the NYC Department of Finance, and they may require documentation and proof of eligibility.
Property tax abatements can be a valuable tool for property owners in NYC looking to save money on their property taxes. By taking advantage of these programs, you can significantly reduce your tax bill and invest the savings back into your property.
Contact a Property Management Firm today to see if you are qualified and start saving on your property taxes!