Industrial Commerical Incentive Program
The Industrial and Commercial Incentive Program (ICIP) converted into the Industrial and Commercial Abatement Program (ICAP) in 2008
The most expensive economic development subsidy program in New York City is the ICIP program that costs $623.4 million according to the city's 2011 Tax Expenditure Budget.. Data on ICAP is not yet available. It is intended to stimulate economic development by offering “as-of-right” property tax exemptions and abatements for eligible industrial and commercial buildings that are built, modernized, rehabilitated, expanded, or otherwise physically improved. Eligibility and value of tax break is based on the location and type of project. The program is structured to incentivize industrial projects throughout the entire city while there are some geographic restrictions for commercial and retail projects.
The ICIP program was converted in 2008 to the Industrial Commericial Abatement Program when the legislature reformed the program . The New York City Department of Finance, the agency that administers the program, has a description of the changes and downloadable database of properties participating in the program. Since some applications for ICIP were still able to be submitted until March 2011, there are no data on the new ICAP program.
A timeline of events in 2008 that lead to reforms in the program:
May 2008 - The Manhattan Borough President's office published a report, Senseless Subsidies, on Retail and ICIP. Read GJNY's statement.
June 2008 - New York State passed legislation authorizing these changes. Among the highlights: ICAP benefits will now be restricted for retail in Midtown Manhattan, the length of time Midtown Manhattan commercial projects are eligible for the property tax abatement will be shortened slightly, and utilities will no longer be eligible. Retail projects outside of Manhattan remain eligible for benefits, as do Midtown Manhattan properties.
August 2008 - A brief by the New York City Independent Budget Office details ICIP-ICAP changes.
September 2008 - The New York City Council's Committee on Economic Development held a hearing regarding changes to ICIP, which will now be known as ICAP. Read Good Jobs New York's statement.
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Additional Resources
- The Great American Jobs Scam: Corporate Tax Dodging and the Myth of Job Creation by Greg LeRoy, executive director of Good Jobs First
- Corporate Subsidies and You: Where Do New Yorkers Fit In?
- Guide to Corporate Research by The Corporate Research Project
- Glossary of Terms by Good Jobs First
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