S. 1743 Summary

• Establishes a real property tax abatement program for eligible buildings in cities with one million or more residents that lease space to nonprofit organizations under specified conditions.

• Requires landlords to enter into ten-year leases with nonprofit tenants that include a renewal clause limiting annual rent increases to no more than three percent to qualify for abatement.

• Provides tax abatement of up to $2.50 per square foot or 50% of tax liability per square foot (whichever is less) for the first five years, decreasing to two-thirds of year one amount for years six through eight, and one-third for years nine through ten.

• Applicants must file for the certificate of abatement within sixty days of the lease commencement date, with the eligibility period running from April 1, 2025 through March 31, 2035.

• Department of Finance can revoke abatements if tenants vacate, premises cease nonprofit use, building taxes remain unpaid for over one year, or applicants submit false information or fail annual compliance certifications.