Bill > A07996

This bill creates a tax abatement program for small businesses in cities with a population of one million or more (effectively New York City) aimed at encouraging affordable commercial rent stability. The program allows eligible buildings to receive significant property tax reductions if landlords meet specific requirements, primarily offering small business tenants a ten-year lease with rent increases limited to three percent annually. The tax abatement is structured to provide the most substantial benefits in the first five years, with gradually decreasing benefits in subsequent years. To qualify, landlords must enter into a lease with a tenant employing fifty or fewer people, for premises used primarily for retail purposes, and submit a detailed application to the city's department of finance. The bill includes strict eligibility criteria and reporting requirements, with provisions for revoking the tax abatement if tenants vacate the premises or if certain conditions are not met. The program is designed to run from April 2025 to March 2041, with the goal of helping small businesses maintain affordable commercial spaces in designated urban areas by providing financial incentives to landlords who limit rent increases.

Budget and Finance

https://www.nysenate.gov/legislation/bills/2025/A7996