BILL NUMBER: S9822
SPONSOR: SEPULVEDA
 
TITLE OF BILL:
An act to amend the real property tax law and the administrative code of
the city of New York, in relation to extending the application deadlines
for tax abatements for certain industrial and commercial properties in a
city of one million or more persons
 
SUMMARY OF PROVISIONS:
Sections one and three of this bill would amend paragraph (a) of subdi-
vision 1 of section 489-dddddd of the Real Property Tax Law, and subdi-
vision a of section 11-271 of the New York City Administrative Code,
respectively, to extend to March 1.2029 the date by which an applicant
may apply for a tax abatement under the Industrial and Commercial Abate-
ment Program ("ICAP").
Sections two and four of this bill would amend subdivision 3 of section
489-dddddd of the Real Property Tax Law and subdivision c of section
11-271 of the New York City Administrative Code, respectively, to extend
to April 1, 2029 the date by which an applicant must have been granted a
building permit, or, where no building permit is required, commenced
construction to apply for a tax abatement pursuant to ICAP.
Section five of this bill would make it effective immediately.
 
REASONS FOR SUPPORT:
ICAP promotes significant new economic activityò. This bill would extend
the generally applicable deadlines and expiration dates for the
submission and processing of applications for ICAP benefits for four
years, and in doing so, continue to allow the City of New York to admin-
ister a tax benefit that is critical to economic development.
It would also prevent a dramatic escalation in the cost of electricity
in New York City by extending the eligibility for an as-of-right proper-
ty tax abatement for peaking generation units for an additional four
years. Continuation of the availability of this abatement is necessary
because the property taxes that could be levied on a new peaking gener-
ation unit are one factor considered by the Federal Energy Regulatory
Commission in its process for establishing capacity prices in New York's
wholesale electricity markets. Absent the availability of this abate-
ment, the cost of capacity would increase and be passed on to consumers
through higher electric rates.
The City's support for extending the eligibility of this property tax
abatement is consistent with the City's goals to reduce greenhouse gas
emissions and transition to a carbon-free electric system. and its
support of the Climate Leadership and Community Protection Act. The
City supports the extension of the ICAP abatement available to peaking
units to protect its residents and businesses from unnecessary and
burdensome increases in their electric bills.
The precise increase in electric rates as a result of eliminating this
property tax abatement cannot be determined at this time. Nevertheless.
failure to extend the abatement could unnecessarily cost New York City
residents and businesses hundreds of millions of dollars each year over
the next four years.
Accordingly. the Mayor urges the earliest possible favorable consider-
ation of this proposal by the Legislature.

Statutes affected:
S9822: 489-dddddd real property tax law, 489-dddddd(1) real property tax law