MOHAMED FARGHALY
mfarghaly@queensledger.com
Amid rising costs and economic strain on small businesses, Queens leaders joined state lawmakers, city officials, and business advocates last week in Albany to rally behind a package of critical tax incentives they say are vital to sustaining job growth and economic development across New York City.
At a press conference on May 28, State Senator Andrew Gounardes and Assemblymember Grace Lee were joined by the Queens Chamber of Commerce, representatives from Mayor Eric Adams’ administration, and economic development organizations to advocate for the passage of SB8063 and A8676—a legislative package including three key tax incentives: the Relocation and Employment Assistance Program (REAP), the Lower Manhattan Relocation and Employment Assistance Program (LM-REAP), and the new Relocation Assistance Credit for Employees (RACE).
Supporters say the legislation is essential to addressing the city’s affordability crisis, combating high commercial vacancy rates, and helping small businesses—especially in Queens—stay afloat and grow in a competitive economic environment.
“Businesses are feeling the affordability crisis severely– if businesses are struggling, that means slower job growth and a cascading effect on neighborhoods across the city,” said Queens Chamber of Commerce President and Five Borough Jobs Campaign Co-Chair Tom Grech. “SB8063 offers a set of solutions to give these local businesses the support they need to grow and create good-paying jobs along the way. Albany cannot wait any longer to make them available to the folks who make our city strong.”
REAP provides eligible businesses with a $3,000 tax credit per employee annually for up to twelve years if they relocate from outside the city or Manhattan below 96th Street to designated revitalization zones in outer boroughs like Queens. Even outside those zones, businesses may still receive $1,000 per employee per year. In Long Island City alone, at least 12 businesses have used REAP to help create more than 2,600 jobs.
“Long Island City has already seen the benefits of programs like REAP, which helped a business like Ferrara Manufacturing stay true to their New York roots and expand into our neighborhood instead of going somewhere else,” said Laura Rothrock, President of the Long Island City Partnership. “In total, REAP has supported more than 2,600 jobs in Long Island City alone – this is a success story that we should be encouraging, not stifling, by renewing such a long-standing and common sense tax incentive.”
Since 1987, New York City has leveraged the REAP incentive program to attract businesses to commercial corridors in northern Manhattan and the outer boroughs, with an expansion in 2003 (LM-REAP) targeting Lower Manhattan’s recovery post-9/11. These programs offer a $3,000 tax credit per employee for up to 12 years, encouraging companies from sectors like engineering, design, biotech, and consulting to relocate within the city. To date, nearly 16,000 employees have benefited, with 178 firms claiming $26.1 million in credits in FY25 alone. The proposed legislation, S8063, seeks a three-year extension of REAP and LM-REAP alongside new reporting requirements to track effectiveness. With NYC office vacancy rates near historic highs and the programs supporting well-paying jobs, median salary $91,371 and over $2 billion in wages from out-of-state firms, advocates emphasize that renewing these incentives is crucial for sustaining employment and economic growth now.
Ferrara Manufacturing, a Queens-based apparel maker specializing in luxury suits and coats, credits the REAP program for enabling it to remain and expand in the city and they are just one business that benefits.
“New York’s business owners aren’t looking for a handout — we’re looking for a shot to succeed so we can uplift the city we care about,” said Gabrielle Ferrara Rose, COO and President of Ferrara Manufacturing. “REAP was instrumental in our expansion, and businesses across the city are counting on this bill so that all of New York City can thrive”
The proposed legislation also includes LM-REAP, aimed at addressing record office vacancy rates in Lower Manhattan, and RACE, a new program designed to attract out-of-state businesses and boost underutilized office space citywide. The RACE incentive alone is projected to generate approximately $385 million in economic returns by bringing new employers to New York City.
At a time when 90% of Queens’ approximately 57,000 small businesses have 10 or fewer employees, advocates say these incentives are not just helpful—they’re urgent.
“Brooklynites are counting on their elected officials to meet the urgency of the moment and deliver a more affordable and thriving city – we’re here today to advance proven tools to do just that,” said State Senator Andrew Gounardes (SD-26). “These programs have already helped thousands of New Yorkers find work closer to home, revitalized local business corridors, and brought new life to vacant office space. We can’t afford to let these incentives lapse at a time when New Yorkers are already struggling with an affordability crisis.”
Members of the Five Borough Jobs Campaign, a coalition of local development groups and business organizations met with lawmakers in Albany to underscore the momentum behind the proposal and the need to extend REAP beyond its scheduled expiration this month.
As New York continues to recover from the long-term effects of the COVID-19 pandemic, supporters argue that maintaining and expanding these programs is essential for small business survival, job creation, and equitable economic development.
“Lower Manhattan is one of the most dynamic economic centers in the country, but at a moment of historic commercial vacancy, we need targeted tools to keep it competitive,” said Assemblymember Grace Lee (AD-65). “Programs like LM-REAP and RACE help attract new employers, fill vacant office space, and keep our business corridors active and resilient—all of which creates more opportunity for working families to thrive. With the legislative session coming to a close, we must act swiftly to renew and expand these essential tools for economic growth.”
For more information about the REAP program, visit tinyurl.com/reapnyc. Learn more about the Five Borough Jobs Campaign at fiveboroughjobs.com.
