Life Sciences Ecosystem Activation Program (LEAP)

The IDA Life Sciences Program has historically been used to incentivize the ground up construction and/or large-scale renovation of new lab-capable life sciences developments. The IDA is now launching a sub-program titled the Life Sciences Ecosystem Activation Program (“LEAP”).

LEAP provides owners of existing commercial lab buildings with a range of tax benefits to support transformative renovations to create specialized spaces that meet life sciences market needs in key clusters of New York City. The program is intended to help building owners activate underutilized or vacant space and attract world-class tenants.

The program offers:

1. Real property tax abatement and stabilization
2. Partial mortgage recording tax exemption
3. Sales tax exemption

The program is competitive, and NYCIDA seeks to support up to 250,000 SF over the next three years. We are now accepting applications on a rolling basis. Email [email protected] for more information.

Eligibility Requirements

• Location: Established life sciences cluster
     ◦ Distinct tax lot (i.e. condominium) for project space to receive benefits
• Minimum Project Size
     ◦ Graduation spaces: 20,000 SF (total SF of multiple suites)
     ◦ Core facilities, including vivaria: 7,500 SF
     ◦ Incubator/accelerator: 10,000 SF
     ◦ GMP: 20,000 SF
• Minimum capital investment: $5M
• Base building infrastructure: lab core and shell

Selection Criteria

Applications to LEAP will be evaluated by NYCIDA staff on several key aspects, including:

• Scope and budget of transformative improvements
• Tenant attraction plan
• Project readiness
• Compliance with applicable local laws and regulations

More on the Benefits

Property Taxes

Land and building taxes for existing improvements may be stabilized and building taxes for project improvements may be abated for a period of up to 20 years (with a phase out of 20 percent per year over the final four years of such period).

Sales Tax

The 8.875 percent sales tax on materials used to renovate or equip facilities may be waived.

Mortgage Recording Tax

Mortgage recording tax relating to the project's financing may be reduced from 2.8 to 0.3 percent.

Program Goals

• Activate underutilized lab space to address life sciences market needs
• Attract world-class life sciences businesses to New York City
• Generate inclusive, future-focused growth