City Opens Applications for New Business Attraction Tax Incentive to Bring New Jobs and Companies to New York City

Relocation Assistance Credit for Employees (RACE) Pilot Program Will Help Fill Vacant Office Space, Attract Talent to New York City, and Generate an Estimated $385 Million

Launched in Tandem with Programs like M-CORE and International Landing Pad Network as Part of the Race for Space Initiative, as New York City is on Track to End the Year Close to Moonshot Office Leasing Goal

Applications Open as New York City Leads Nation in Leasing Recovery and Net Absorption

NEW YORK, NY—New York City Economic Development Corporation (NYCEDC) today announced the launch of applications for the Relocation Assistance Credit for Employees (RACE) pilot program, a business attraction tool designed to support the expansion of non-New York based companies to New York City and fill outdated office stock. The program will increase the city’s employment base, drive foot traffic to central business districts and surrounding retail, and generate an estimated $385 million for New York City. Announced in February as part of the Adams Administration’s Race for Space Initiative and signed into law by the governor over the summer, applications for the RACE program open on Saturday, December 20, 2025.

This new business attraction tool is part of the administration’s “Race for Space” initiative, a comprehensive strategy to revitalize and reimagine office space across New York City. Race for Space offers a suite of programs designed to tackle the challenge of vacant office space, attract global business and talent to New York City, and breathe life into the city’s commercial office hubs and outer boroughs. New York City is on track to end the year close to the office leasing moonshot goal set as part of the Race for Space initiative, a benchmark that seemed near-impossible during the pandemic. According to NYCEDC’s State of the NYC Economy Report, the New York City metro area leads the nation in office net absorption since 2024, meaning more square feet were leased than vacated in New York City compared to all other metros.

“New York City is closing the year with historic leasing in the commercial office market, and much of this success is because of decisive actions taken by the Adams administration,” said Deputy Mayor for Housing, Economic Development, and Workforce Adolfo Carrión Jr. “Specifically, I am proud of our work to introduce a new business attraction incentive—RACE—which is designed to bring new companies to New York City so that our economy continues to grow, our office market thrives and New York City maintains its global standing as the world’s destination for business.”

“When COVID-19 began, there were fears of an ‘urban doom loop,’ and today, we lead the nation in leasing activity and young talent attraction,” said NYCEDC President & CEO Andrew Kimball. “From launching programs like M-CORE or the International Landing Pad Network, we are proud to take action to fill vacant office space and attract talent and jobs to New York City, and look forward to the RACE incentive providing an additional shot in the arm to buildings across New York City.”

The new RACE pilot program, designed to limit the overall cost and incentivize the process of expansion to New York City, has the capacity to support 3,000 new New York City-based employees, with a cap of 500 employees per firm. The RACE program is temporary and meant to serve as a shot in the arm for core business districts and outer boroughs that still have substantial vacancies.

Through the RACE incentive, approved companies will receive an annual $5,000 benefit for each employee relocating to New York City from out of state, for 10 years. The per employee benefit equates to roughly $38,600 Net Present Value (NPV) for expansions to the city, translating to a roughly $20 per square foot discount.

Companies interested in moving to New York City for the first time can view the eligibility requirements and criteria for the RACE program here. Incentives will be given on a first-come first-served basis. The pilot program will be open for three years.

“This is how we meet the moment and create a truly thriving city that offers economic opportunity for all,” said State Senator Andrew Gounardes. “The RACE program helps businesses grow here, revitalizes our local commercial corridors, and brings new life to vacant office space. Part of what makes New York City so special is its ability to evolve, adapt and grow with the times. This program enables that evolution to continue, toward a future where everyone can pursue their dreams here.”

“New York City’s recovery depends on bringing in new employers and new workers,” said Assemblymember Grace Lee. “RACE gives companies a real incentive to locate here, helps create new jobs, and puts energy back into our commercial corridors—from Lower Manhattan to the outer boroughs. I was proud to champion this program’s passage in the Assembly.”

“REBNY applauds NYCEDC, the Adams Administration, the State Legislature and Governor Hochul for launching this program to drive job creation and investment in New York City,” said Zachary Steinberg, REBNY Executive Vice President of External Relations and Advocacy. “By attracting out-of-state businesses and activating underutilized office space, RACE will strengthen commercial districts and spur economic activity for local retail and small businesses across all five boroughs.”

“If you’re a business leader thinking about relocating—choose New York City,” said Tom Grech, President and CEO of the Queens Chamber of Commerce, and Randy Peers, President and CEO of the Brooklyn Chamber of Commerce, on behalf of the Five Borough Jobs Campaign. “Doing business here isn’t always easy, but the rewards for success are greater than anywhere in the world. And with the new RACE tax incentive now open for applications, our city just made it easier than ever to make your move here.”

In addition to RACE, many of the Race for Space programs and strategies have seen substantial progress under the Adams Administration:

International Landing Pad Network (ILPN)

• In September, NYCEDC selected Plug and Play, Supermomos & Lightspeed Ventures, SOSA, and The Clean Fight, as the four operators for the inaugural ILPN, a one stop-shop for growth-stage international companies looking to establish and expand in New York City. Each operator will host 10 to 20 growth-stage companies operating across innovative, high-growth sectors including Tech, AI, Green Economy, and Life Sciences. Applications were launched in October, and while the last round of applications does not close until early August, 66 companies have already applied for a projected 50 spots.

Manhattan Commercial Revitalization Program (M-CORE)

• Launched in 2023, M-CORE was a key recommendation from the ‘New’ New York panel designed to reimagine New York City's commercial districts as vibrant 24/7 destinations. M-CORE aims to convert aging and vacant office space to amenity rich, high-quality office space that meets the demands of the current workforce. Since the program launch, the NYCIDA Board has approved three projects: 850 Third Avenue,175 Water Street, and 460 Park Avenue. The M-CORE application remains open.

Improved Leasing Activity in Central Business Districts

• Leasing recovery has been particularly strong in Manhattan central business districts, with Midtown and Midtown South both recovering to pre-COVID levels of office leasing in 2025. This momentum has been catalyzed by financial institutions, which now account for almost 30% of the top 500 leases, up from 23% pre-pandemic.

Companies Are Choosing New York City

• NYCEDC’s business development team works directly with companies considering expanding to New York City. Some of the companies that have worked with NYCEDC’s business development team and announced a move or expansion to New York City include: Chobani, Bridgewater Associates, Rippling, Figma, Peregrine, Kore.AI, SharkNinja, and QueenOne. To learn more about NYCEDC’s business development services or the RACE program, visit choose.nyc.

Major Leases Signed in Lower Manhattan

• Recent leases that demonstrate the interest in New York City’ Lower Manhattan neighborhood include: Stripe’s 147K SF lease at 28 Liberty St, Meow Wolf’s first permanent exhibition at 89 South St, Clear Street’s expansion to 88K SF at 4 World Trade Center, and Scale AI’s expansion to 80K SF at One World Trade Center.

About NYCEDC
New York City Economic Development Corporation is a mission-driven, nonprofit organization that works for a vibrant, inclusive, and globally competitive economy for all New Yorkers. We take a comprehensive approach, through four main strategies: strengthen confidence in NYC as a great place to do business; grow innovative sectors with a focus on equity; build neighborhoods as places to live, learn, work, and play; and deliver sustainable infrastructure for communities and the city's future economy. To learn more about what we do, visit us on Facebook, X, LinkedIn, and Instagram.