What Is the 421g Tax Abatement in NYC? Learn more: [ Ссылка ]

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The 421g tax abatement was created in the mid 1990’s to incentivize developers to convert old downtown office buildings into residential use as businesses migrated to Midtown.

The 421g tax abatement covers Lower Manhattan, meaning most areas south of Murray Street, City Hall and the Brooklyn Bridge.

How Much Tax Is Abated Under 421g?

The 421g program provides tax exemptions for 12 years for non-landmark buildings, and tax exemptions of 13 years for landmark buildings.

Non-landmark buildings are fully exempt under 421g during the first 8 years post-construction, after which the exemption amount decreases by 20% per year until the property becomes fully taxable.

Landmark buildings are fully exempt for the first 9 years post-construction, after which the exemption amount decreases by 20% per year until the property becomes fully taxable.

Keep in mind that the 421g tax abatement provides a shorter construction period exemption of only 1 year, vs 3 years on average for its cousin the 421a tax abatement. That’s because many of the projects under 421g were condominium conversions vs new construction which means less time required for construction. Remember that many 421g projects were former Financial District office buildings that have been converted into multiple dwelling residential use.

You can check out any NYC building’s tax abatement and exemption information for yourself here [[ Ссылка ]].

Buying a 421g Tax Abated Apartment

Buyers should research how many years of 421g tax abatement are left before submitting an offer on an apartment advertising such a tax incentive.

If the property for sale is a re-sale condo or co-op, then it may not have many years of tax exemption left. Furthermore, the owner most likely knows this and is desperate to advertise it with lower, tax abated monthly costs before property taxes increase.

Selling a 421g Tax Abatement Unit

Sellers should consider listing their property before their 100% tax exemption begins phasing out in order to advertise the lowest possible property taxes to potential buyers.

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