Sales and Use Tax Exemptions Extended for Certain Property and Service Purchases for Leased Commercial Office Space in Lower Manhattan

Amendments have been made to the Tax Law that will extend tax incentive opportunities for businesses that locate or relocate offices in lower Manhattan.

Originally enacted in 2005, these incentives render certain purchases of tangible personal property and services related to leased commercial office space in two eligible areas in lower Manhattan exempt from New York State and local sales and use tax (sales tax). The extension became effective June 29, 2017.

Specific criteria includes:

Eligible area A. A qualifying commercial lease must begin before September 1, 2020 (extended from September 1, 2017). The sales tax exemptions for this area will apply until December 1, 2021.

Eligible area B. A qualifying commercial lease must begin before September 1, 2022 (extended from September 1, 2019). The sales tax exemptions for this area will apply until December 1, 2023.

A description of the locations included in Area A and Area B can be found in the original documentation describing Chapter 2 of the Laws of 2005 here.

To confirm eligibility, ensure that the eligible companies are receiving the appropriate tax incentives, and to obtain insight on whether specific expenses qualify, contact your Anchin relationship partner or Sharon Ackerman, Tax Director, at 212.840.3456 or [email protected].