Bill > S01451

This bill creates the Neighborhood Small Business Rent Increase Exemption, a tax abatement program specifically designed for small businesses in cities with a population of one million or more (effectively targeting New York City). The bill provides a structured tax reduction for eligible small businesses that meet certain lease requirements, with the primary goal of supporting neighborhood commercial spaces. Key provisions include: landlords must enter into a ten-year lease with a tenant and include a lease renewal clause that limits rent increases to no more than 3% annually; the tax abatement will be gradually reduced over a ten-year period (full abatement in the first five years, two-thirds abatement in years six through eight, and one-third abatement in years nine and ten); and businesses must be small (50 or fewer employees) and primarily engaged in retail or service-oriented commercial activities. To qualify, businesses must apply within 60 days of their lease commencement, and the abatement can be revoked if the tenant vacates the premises, fails to maintain eligibility, or if certain tax or other charges remain unpaid. The program is intended to help stabilize small businesses by providing a financial incentive for landlords to offer more affordable, long-term leases in designated urban areas.

Budget and Finance, Government Affairs

https://www.nysenate.gov/legislation/bills/2025/S1451