Business Investment Exemption (RPTL §485-b)

Overview

The New York State Business Investment Exemption (Real Property Tax Law §485-b) provides a partial property tax exemption for eligible commercial, business, and industrial property improvements. The program is designed to encourage investment, expansion, and economic development by reducing property tax increases resulting from qualifying construction or renovation projects.

This exemption is available only in municipalities and taxing jurisdictions that have adopted the program through local option.

Eligible Properties

The exemption may apply to commercial and industrial facilities that are:

• Constructed
• Altered
• Installed
• Modernized
• Expanded
• Improved

after July 1, 1976, or after a later date established by the local taxing jurisdiction.

Eligible projects must generally exceed a minimum construction cost of $10,000, although municipalities may establish higher thresholds.

The exemption is granted only after the construction or improvement project has been completed.

RP-485b Exemption Application

RP-485b Instructions