The NYCIDA Life Sciences Program provides life sciences companies and developers of related space with a range of tax benefits—to support the creation of good jobs and the growth of the life sciences industry in NYC. The program offers:
- Real estate tax reductions
- Mortgage recording tax reduction
- Sales tax exemptions
More on the Benefits
Land and building taxes may be abated for a term determined by NYCIDA necessary to incentivize the development of life sciences space. A phase-out of the benefit begins four years prior to the last year of the term and increases by 20 percent until the taxes are increased to the full amounts.
The 8.875% sales tax on materials used to construct, renovate, or equip facilities may be waived.
Mortgage Recording Tax
Mortgage recording tax relating to the project's financing and 2.80% for mortgages greater than $500,000 may be reduced.
The program benefits life sciences companies and developers of life sciences space that are looking to grow or expand in NYC. These are companies that are seeking to enter into long-term lease agreements and are planning to construct or renovate space for their own operations or to lease to third parties.
Applications to the NYCIDA Life Sciences Program will be evaluated on a number of key aspects, including:
- Jobs and economic impact
- Size of development
- Benefits per square foot
- Term of leases to tenants
- Ratio of laboratory to office space
- Rents offered to tenants
- Current usage of the development
- Anchor tenant/partnership
- Project timing
Landlords and developers should respond in their application with a specific property that will be repositioned as a life sciences asset as a result of the program benefits.