NY A02418

Creates a real property tax abatement for eligible small businesses (50 or fewer employees) in cities with populations over one million that sign 10-year leases with annual rent increase caps of no more than 3%.

Provides abatement of $2.50 per square foot or 50% of tax liability per square foot (whichever is less) for the first 5 years, then phases down to two-thirds of year-one amount for years 6-8 and one-third for years 9-10.

Establishes eligibility period from April 1, 2021 through March 31, 2039, with applications required within 60 days of lease commencement and annual continuing eligibility certifications required by July 1 each year.

Revokes abatement if original tenant vacates premises, if commercial space usage decreases, if property taxes remain unpaid over one year, or if lease is determined not to be an arm's length transaction.

Requires lease provisions disclosing the abatement, rent reduction terms, 3% renewal increase limits, and conditions for revocation; exempts abated buildings owned by government agencies.