ICAP: Compliance Requirements

ICAP: Compliance Requirements

The Industrial and Commercial Abatement Program (ICAP) provides a reduction of property taxes for construction, alterations, or improvements on qualifying industrial or commercial properties. This reduction is only in specific areas of New York City and for varying periods of time.

ICAP replaced the previous program Industrial Commercial Exemption program (ICIP), which ended in 2008. The goal of the ICAP program is to create a tax incentive for owners of commercial and industrial properties, up to 25 years, that improve qualifies properties or build new.

Qualifying properties must be located in the Bronx, Brooklyn, Staten Island, Queens, and certain areas of Manhattan. These properties must involve either a new property build, an alternation such as an expansion or modernization, or a general building improvement.

Property Owners can apply for this reduction by completing an ICAP Preliminary Application. Recently there has been increased scrutiny regarding ICAP applications and supporting evidence of compliance activities are now expected to be included. The NYC Department of Finance may deny, reduce, suspend, revoke, or terminate any ICAP benefits if the recipient fails to comply with the requirements.

Some requirements your ICAP application must include are:

  • Evidence of efforts to negotiate on subcontracts and supply & service contracts
  • Meetings with MWBEs as appropriate
  • Written notices of specific MWBE opportunities

Working with a lawyer is extremely important when filling out the ICAP preliminary application. Due to the increased proof of compliance activities, it’s necessary to work with a company that knows the regulatory requirements including data tracking and reporting.

Partnering with TSIB can help you obtain the required compliance evidence needed. We can ensure compliance from MWBE Bid list development, email solicitations, and more! Reach out to TSIB today to learn more.

Learn more about ICAP!

TSIB’s Risk Consultants are currently servicing the following locations:

East Coast: New York City, NY; Bergen County, NJFairfield County, CTPhiladelphia, PA

Texas: Austin, San Antonio, Houston, Dallas

California: Orange CountyLos Angeles County, Riverside County, San Bernardino County, San Diego County

Image credit: Prathan/shutterstock.com