As the June 15, 2022 deadline for commencement of construction for projects to vest under the current 421-a(16) program draws nearer, it’s crucial not to lose sight of the Industrial and Commercial Abatement Program, or ICAP, which may interface with a 421-a(16) mixed-use project. The 421-a(16) Program only includes up to 12% of Aggregate Floor Area for nonresidential space. Separate condominium tax lots can be created to cover the excess nonresidential square footage in Manhattan above 96th Street and the Boroughs. The ICAP benefit provides a significant tax abatement on these industrial or commercial spaces, but only if specific program requirements are met. One essential requirement is to file a Preliminary Application with the Department of Finance before any Construction Permits are Issued. Filing the Preliminary Application is necessary to preserve the right to seek an ICAP benefit even if specific industrial or commercial use designations have not yet been finalized. Furthermore, developers must solicit contractors and subcontractors from among New York City-Certified Minority and Women-Owned Business Enterprises. Don’t miss the opportunity to pursue this as-of-right abatement by contacting Jay Seiden, Jason Hershkowitz, or Frank Baquero today!