NYC DEPARTMENT OF FINANCE | PROPERTY EXEMPTIONS ADMINISTRATION en-USIndustrial and Commercial Abatement Programen-USPRELIMINARY APPLICATION INSTRUCTIONSen-USICAPen-USThis Preliminary Application, when duly 037led, will ful037ll the requirement that an applicationen-US en-USbe made before issuance of a building permit, but does not confer the right to any bene037t. en-US en-USPlease be sure to complete all sections and sign this application.en-USMail completed application and all required attachments to: en-US en-USNew York City Department of Finance, ICIP/ICAP, 59 Maiden Lane, 22nd Floor, New York, NY 10038en-USThe completed application must be accompanied by a narrative describing the project site; the proposed improvement(s); the proposed en-USuses of the building or structure upon completion of improvements; and whether the improvements are building-wide or limited to speci037c en-USbuilding systems or renovations to particular areas (such as speci037c 036oors or lobby) of the building.en-USFailure to 037le an Application for Industrial and Commercial Abatement Program (ICAP) bene037t before receipt of the 037rst en-USbuilding permit or, if no permit is required, the start of construction, will disqualify you from receiving bene037ts under en-US en-USthis program.en-USProgram Overview and Milestonesen-USOverviewen-USThe Industrial and Commercial Abatement Program en-US(ICAP) provides for a partial abatement of taxes for en-USeligible industrial or commercial buildings that are en-USconstructed, modernized, rehabilitated, expanded or en-USotherwise physically improved. As of May 18, 2011, en-USbene037ts are available for electricity generating units en-USde037ned as 223Peaking Units.224 Bene037ts are not available for en-USany other utility property. Additionally, bene037ts for space en-USused or held out for retail purposes may receive limited en-USor no bene037ts and may disqualify a project from any en-USbene037ts depending upon location of the building and/en-USor the construction work performed. ICAP bene037ts are en-USgranted to all applicants whose projects qualify under the en-USprovisions of the legislation.en-USExpirations and Filing Datesen-USUnder the current statute, ICAP will expire March 1, en-US2022. Preliminary applications received after this date will en-USbe late and won222t be eligible for bene037ts.en-USCerti037cates of Eligibilityen-USThe Department of Finance, which administers this en-USprogram, issues Certi037cates of Eligibility for projects that en-USmeet the program requirements.en-USNo tax bene037t will be granted under this title if a property en-USis concurrently receiving an exemption or abatement of en-USreal property tax under any other law, with a small number en-USof exceptions such as exemptions available to property en-USowned by not-for-pro037t organizations. A subsequent ICAP en-USbene037t is not available for construction work on the same en-USportion of the property for which construction work is the en-USsubject of an abatement under the ICAP program until at en-USleast en-USfour years have elapsed since the 037rst day of the 037rst en-UStax year of the prior abatement bene037t.en-USMinimum Required Expendituresen-USApplicants must meet Minimum Required Expenditure en-US(MRE) targets. The MRE is 30% of the property222s taxable en-USassessed value in the tax year with a taxable status date en-USimmediately preceding the issuance of the 037rst building en-USpermit, or, if no permit is required, commencement of en-USconstruction.en-USFor an industrial construction project that meets an MRE of en-US40% or more, the project will be eligible for the additional en-USabatement that reduces the pre-construction tax on the en-USbuilding or structure.en-USResidential and Retail Space Limitationen-USNo more than 20% of the total rentable square footage can en-USbe dedicated to residential purposes. If so, apportionment en-USis required. See nyc.gov/apportionments for more details.en-USThe availability of ICAP bene037ts for retail use is limited in en-USthe following cases: A. þ For industrial buildings or commercial buildings in en-USspecial commercial areas: if retail use exceeds 10% of en-USthe tax lot, the excess retail space is granted a 15-year en-USbene037t rather than the 25-year bene037t. American LegalNet, Inc. www.FormsWorkFlow.com B. þ Renovation areas of Manhattan: except in the Lower en-USManhattan renovation area, any retail use in excess of en-US5% of the tax lot is ineligible for ICAP bene037ts.en-USFiling and Permitsen-USApplicants must 037le a preliminary application with the en-USDepartment of Finance PRIOR to the issuance of a building en-USpermit for this project or, if no permit is required, prior en-USto the start of construction. en-USFailure to 037le the preliminary en-USapplication on a timely basis will disqualify an applicant en-USfrom receiving any bene037ts under this programen-US. If the 037ling en-USrequirements are met, an applicant may begin construction en-USonce the Buildings Department issues a permit. Information en-USregarding additional 037lings may be found in the following en-US223MILESTONES224 section.en-USMilestonesen-US225 þ File ICAP Preliminary Application for Certi037cate of en-USEligibility before the issuance of a building permit, or if no en-USpermit is required, the start of construction.en-US225 þ For projects $750,000 and over, applicants are also en-USrequired to submit to the NYC Small Business Services en-US- Labor Services Unit, a copy of the ICAP Preliminary en-USApplication for Certi037cate of Eligibility en-USANDen-US the ICAP en-US en-USM/WBE Compliance Report. A copy of the ICAP en-US en-USM/WBE Compliance Report and the NYC Small Business en-USServices Certi037cate of Approval for projects greater than en-US$2.5 million, are to be submitted to the Department of en-USFinance with the ICAP Final Application only.en-USFor complete ICAP Bene037t Schedules,en-US en-USvisit nyc.gov/037nanceen-US225 þ en-USAll ICAP applicants must reach out to Minority and en-USWomen-owned Business Enterprises (M/WBE) for the en-USpurpose of promoting contracting opportunities on the en-USproject. en-USTo 037nd M/WBEs, please visit the City222s Online en-USDirectory of Certi037ed Businesses. To search for 037rms by en-UScommodity codes, locations, and keywords, en-US en-USgo to www.nyc.gov/buycerti037ed.en-US225 þ Notify the Division of Labor Services 15 business days en-USbefore commencement of work. Submit an Employment en-USReport for projects with construction contracts in excess en-USof $2,500,000 for the applicant and subcontractor en-UScontracts in excess of $1,000,000.en-US225 þ Receive a en-USbuilding permiten-US, where required, prior to the en-UScommencement of construction.en-US225 þ File completed 037nal application for Certi037cate of Eligibility en-USno lateren-US than one year after the effective date of eligibility. en-USThe effective date of eligibility is the date of the 037rst en-USbuilding permit that allows construction to proceed, or if en-USno permit is required, no later than one year from the date en-USthat construction started. Construction does not need to en-USbe complete to submit a 037nal application, so there are no en-USexceptions. If a 037nal application is submitted after one year, en-USthe application will be automatically denied.en-US225 þ Submit proof of meeting the minimum required en-USexpenditure en-USwithin applicable time periodsen-US after issuance en-USof the building permit on projects under construction or en-USupon completion.en-US225 þ Submit notice of completion to ICAP Unit within 120 en-USdays of taxable status after the completion date. A Final en-USCerti037cate of Eligibility will then be issued. Taxable status en-USdate is January 5, preceding the tax year starting July 1.en-US225 þ File a Certi037cate of Continuing use every two years with en-USthe Department of Finance during the bene037t period. en-USHowever, an amendment to the certi037cate of continuing en-USuse must be 037led immediately in certain circumstances en-USwhen space is converted to another use.en-US225 þ Project must be completed no later tha