New York City Extends J-51 Tax Abatement Program

By Katherine Baerga

More than one year after its expiration, the New York City Council has extended the J-51 tax abatement and exemption program, which allows owners of older residential buildings to get a break in property taxes in exchange for conducting significant renovation work or converting a commercial building to a residential one.

The measure will also apply retroactively to qualifying projects that occurred after the June 29, 2020, expiration. This tax exemption provides relief by utilizing the assessed valuation (the property tax rate is based on the assessed valuation) prior to construction. The tax abatement reduces the tax owed at that time.

The new legislation will extend the program through June 30, 2022. Work completed through that date will be eligible for the abatement.

J-51 Eligibility

The New York City Department of Housing Preservation and Development (HPD) determines eligibility for the J-51 program, administered by the Department of Finance (DOF). Once approved, owners must complete and submit the J-51 Property Tax Exemption and Abatement Application, along with the HPD Certificate of Eligibility.

If you have questions or need assistance, please contact Metropolis Group at 212.233.6344.