In an effort to boost childcare centers in New York City, for a limited time the city is offering a tax abatement to eligible owners.

Owners of eligible buildings, including class 1, 2 and 4 properties, may receive the childcare center tax abatement for construction, conversions, alterations, or improvements of their property to create or expand an existing childcare center. Any such work completed on or after April 1, 2022, may qualify. The incentive comes in the form of an abatement of property tax, up to the full amount expended by the owner in creating the new or expanded childcare center, although such amount is subject to a cap, to be later discussed.

Abatement Term and Application Deadlines

The first year of the program is this upcoming tax year, starting July 1, 2023, through June 30, 2030. Approved applicants will receive the abatement over a five-year period, so the latest applications for the abatement must be submitted by March 15, 2025, in order to receive the entirety of the abatement over a five-year period. To qualify for the abatement for each upcoming tax year starting July 1, applicants must have submitted their application by March 15 earlier that year. For example, in order for the abatement to apply toward the tax year starting July 1, 2023, applications must have been submitted by March 15, 2023.