NY S01451

Authorizes cities with populations over one million to offer property tax abatements to landlords who sign 10-year leases with small businesses (50 or fewer employees) and include renewal clauses limiting rent increases to no more than 3% annually

Tax abatement equals the lesser of $2.50 per square foot or 50% of tax liability per square foot for the tenant's portion of the building, lasting up to 120 months with gradual phase-out (full amount years 1-5, two-thirds years 6-8, one-third years 9-10)

Eligibility period runs from April 1, 2025 through March 31, 2041, applying to non-residential or mixed-use buildings not owned by government agencies within designated abatement zones

Landlords must pass the full tax abatement benefit to eligible tenants through reduced rent or property tax charges, and cannot allocate abatement benefits to non-eligible or non-participating tenants

Abatements can be revoked if tenants vacate, if property taxes or water/sewer charges remain unpaid for over one year, or if applications contain false or misleading statements, with retroactive repayment of taxes plus interest required