Lower Manhattan Relocation and Employment Assistance Program for Eligible Businesses (LMREAP-EB)

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The Lower Manhattan Relocation and Employment Assistance Program for Eligible Businesses (LMREAP-EB) offers business income tax credits for relocating businesses to Lower Manhattan.

The eligible business has to move at least one employee from outside the LMREAP-EB area to a qualified location.

Qualified Locations in Lower Manhattan - See Map

The LMREAP-EB area lies south of a line running from the intersection of the Hudson River with the Holland Tunnel; running north along West Street to the intersection of Clarkson Street; running east to the intersection of Washington Street; running south along the centerline of Washington Street to the intersection of West Houston Street; and east along the centerline of West Houston Street, then at the intersection of the Avenue of the Americas the line continues east along the centerline of East Houston Street to the easterly bank of the East River.


  • An annual credit of $3,000 for twelve years per eligible employee, or per "eligible aggregate employment share" (EAES) for relocating to a designated location. The number of EAES's is roughly the same as the number of full-time employees working at the eligible location. There are some limitations.
  • The credit may be taken against the following:
  • NYC General Corporation Tax (GCT)
  • Banking Corporation Tax (BCT)
  • Unincorporated Business Tax (UBT), and/or
  • Utility Tax

Credits are refundable for the year of relocation and the next four years. Unused credits from subsequent years may be carried forward for five years.

Eligible Businesses

  • Must have conducted significant business operations outside of New York City for at least 24 consecutive months immediately before relocating.
  • Must relocate on or after July 1, 2003.
  • Must not have had employees working in New York City between January 1, 2002 and the date it enters into a lease or contract for eligible premises.
  • Most retail activities and hotel services do not qualify; however, internet sales and sales by mail or telephone may qualify.

Eligible Premises

  • Must be nonresidential.
  • Must have been improved by construction or renovation.
  • Expenditures for improvements to the property must be made in excess of 50% of the assessed value of the property for commercial properties or 25% of the assessed value for industrial properties.
  • Eligible premises must satisfy either the Property Criteria or the Premises Criteria below:
  • Property Criteria - Eligible premises must be located in property that is one of the following:
  • Eligible for the Industrial and Commercial Incentive Program (ICIP) (Please note that the Industrial and Commercial Abatement Program (ICAP), which replaced ICIP, does not provide for REAP eligibility.);
  • Leased from the New York City Industrial Development Agency;
  • Owned by the City; or
  • Leased from the Port Authority or New York State Urban Development Corporation.
  • Premises Criteria
  • If leased, the lease term must be at least three years after the lease start date or the date of relocation, whichever is later.
  • Expenditures for improvements to the premises of more than $25 per square foot must be made on or after July 1, 2003.

Other REAP Programs

LMREAP-SEB (Special Eligible Businesses) may be available to businesses not qualifying for LMREAP-EB because they had employees in Manhattan before the relocation.

Forms & Reports

Applicants must submit a completed LMREAP application and all required supporting documentation. Annual certifications are required to determine the amount of LMREAP benefit for each of the twelve years. An application for Certificate of Eligibility of Designated Premises (REAP-ADD) must be filed for additional or replacement premises.


Application deadline was extended to June 30, 2017. You must file for annual re-certification for each eligible year.

Cost Services Group is part of the NECS Group of Companies

We are located in Brooklyn, New York at 1274 49th Street Brooklyn NY 11219 Phone: 855.733.1100