Prior to Monday's passage of A10241/S7135, office and retailtenants would have had until this Wednesday to commence leases thatwould qualify for the tax abatements. The legislation extends thateligibility period to March 31, 2014, and the benefit period fromMarch 31, 2016 to March 31, 2020. Additionally, the time period inwhich tenant improvements to eligible premises must be made hasbeen extended from Sept. 30, 2010 to Sept. 30, 2014. Thelegislation also extends the benefit period for the commercial renttax reduction from March 31, 2015 to March 31, 2020.

In a statement, Elizabeth Berger, president of the Alliance forDowntown New York, says that passage of the tax abatement extensionis "a significant mechanism for business attraction and retentionin Lower Manhattan. As our region continues to weather thelingering recession, it is particularly critical to provide toolsfor growth and vitality in commercial areas, and today's actiondoes just that." Berger had advocated for passage of themeasure.

According to the city's Department of Finance, CRP wasimplemented in 1995 to increase tenant occupancy in office andretail space Downtown, and to reduce building obsolescence "byencouraging investment in older commercial space or conversion toresidential use." Under CRP, the Department of Finance offers areal estate tax abatement of $2.50 per square foot for commercialtenants moving into pre-1975 properties. The abatement is availablefor up to five years; subleases and relocations from the outerboroughs are not eligible.