NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A10530
SPONSOR: Rules (Dais) TITLE OF BILL:
An act to amend the real property tax law and the administrative code of
the city of New York, in relation to extending the application deadlines
for tax abatements for certain industrial and commercial properties in a
city of one million or more persons
SUMMARY OF PROVISIONS:
Sections one and three of this bill would amend paragraph (a) of subdi-
vision 1 of section 489-dddddd of the Real Property Tax Law, and subdi-
vision a of section 11-271 of the New York City Administrative Code,
respectively, to extend to March 1.2029 the date by which an applicant
may apply for a tax abatement under the Industrial and Commercial Abate-
ment Program ("ICAP").
Sections two and four of this bill would amend subdivision 3 of section
489-dddddd of the Real Property Tax Law and subdivision c of section
11-271 of the New York City Administrative Code, respectively, to extend
to April 1, 2029 the date by which an applicant must have been granted a
building permit, or, where no building permit is required, commenced
construction to apply for a tax abatement pursuant to ICAP.
Section five of this bill would make it effective immediately.
REASONS FOR SUPPORT:
ICAP promotes significant new economic activity•. This bill would extend
the generally applicable deadlines and expiration dates for the
submission and processing of applications for ICAP benefits for four
years, and in doing so, continue to allow the City of New York to admin-
ister a tax benefit that is critical to economic development.
It would also prevent a dramatic escalation in the cost of electricity
in New York City by extending the eligibility for an as-of-right proper-
ty tax abatement for peaking generation units for an additional four
years. Continuation of the availability of this abatement is necessary
because the property taxes that could be levied on a new peaking gener-
ation unit are one factor considered by the Federal Energy Regulatory
Commission in its process for establishing capacity prices in New York's
wholesale electricity markets. Absent the availability of this abate-
ment, the cost of capacity would increase and be passed on to consumers
through higher electric rates.
The City's support for extending the eligibility of this property tax
abatement is consistent with the City's goals to reduce greenhouse gas
emissions and transition to a carbon-free electric system. and its
support of the Climate Leadership and Community Protection Act. The
City supports the extension of the ICAP abatement available to peaking
units to protect its residents and businesses from unnecessary and
burdensome increases in their electric bills.
The precise increase in electric rates as a result of eliminating this
property tax abatement cannot be determined at this time. Nevertheless.
failure to extend the abatement could unnecessarily cost New York City
residents and businesses hundreds of millions of dollars each year over
the next four years.
Accordingly. the Mayor urges the earliest possible favorable consider-
ation of this proposal by the Legislature.
STATE OF NEW YORK
________________________________________________________________________
10530
IN ASSEMBLY
June 2, 2024
___________
Introduced by COMMITTEE ON RULES -- (at request of M. of A. Dais) --
read once and referred to the Committee on Ways and Means
AN ACT to amend the real property tax law and the administrative code of
the city of New York, in relation to extending the application dead-
lines for tax abatements for certain industrial and commercial proper-
ties in a city of one million or more persons
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Paragraph (a) of subdivision 1 of section 489-dddddd of the
2 real property tax law, as amended by section 3 of part SS of chapter 56
3 of the laws of 2020, is amended to read as follows:
4 (a) Application for benefits pursuant to this title may be made imme-
5 diately following the effective date of a local law enacted pursuant to
6 this title and continuing until March first, two thousand [twenty-five]
7 twenty-nine.
8 § 2. Subdivision 3 of section 489-dddddd of the real property tax law,
9 as amended by section 4 of part SS of chapter 56 of the laws of 2020, is
10 amended to read as follows:
11 3. (a) No benefits pursuant to this title shall be granted for
12 construction work performed pursuant to a building permit issued after
13 April first, two thousand [twenty-five] twenty-nine.
14 (b) If no building permit was required, then no benefits pursuant to
15 this title shall be granted for construction work that is commenced
16 after April first, two thousand [twenty-five] twenty-nine.
17 § 3. Paragraph 1 of subdivision a of section 11-271 of the administra-
18 tive code of the city of New York, as amended by section 8 of part SS of
19 chapter 56 of the laws of 2020, is amended to read as follows:
20 (1) Application for benefits pursuant to this part may be made imme-
21 diately following the effective date of the local law that added this
22 section and continuing until March first, two thousand [twenty-five]
23 twenty-nine.
24 § 4. Subdivision c of section 11-271 of the administrative code of the
25 city of New York, as amended by section 9 of part SS of chapter 56 of
26 the laws of 2020, is amended to read as follows:
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD15828-01-4
A. 10530 2
1 c. (1) No benefits pursuant to this part shall be granted for
2 construction work performed pursuant to a building permit issued after
3 April first, two thousand [twenty-five] twenty-nine.
4 (2) If no building permit was required, then no benefits pursuant to
5 this part shall be granted for construction work that is commenced after
6 April first, two thousand [twenty-five] twenty-nine.
7 § 5. This act shall take effect immediately.
