The Childcare Center benefit is a property tax abatement for property owners whose property construction, conversion, alteration, or improvement completed after April 1, 2022, resulted in the creation of a new childcare center or an increase in the maximum number of children allowed in an existing center as specified in the permit issued by the NYC Department of Health and Mental Hygiene (DOHMH).

Property owners who create a childcare center or increase the number of seats at an existing childcare center may be eligible for a property tax abatement covering up to $225,000 of construction costs.

Learn more about the Childcare Center Abatement.

The amount of the abatement depends on whether the seats were created in a childcare desert, a designation that is determined by the New York State Office of Children and Families.

Childcare Desert Determinations

A childcare desert is a census tract where there are three or more children under five years old for each available childcare slot, or where there are no available childcare slots.

  • If a property is in a childcare desert, owners may be eligible for a property tax abatement of up to $75 per square foot, or up to a total of $225,000.
  • If property is not in a childcare desert, owners may be eligible for a property tax abatement of up to $35 per square foot, or up to a total of $100,000.

Abatement Period

The abatement is spread over five years, so the maximum abatement amount per year for properties in a childcare desert is up to $15 per square foot, or up to a total of $45,000, and the maximum amount per year for other properties is up to $7 per square foot, or up to a total of $20,000.

The City has budgeted a total of $25 million for this property tax abatement. Benefits may be reduced if approved abatements for eligible buildings exceed $25 million.

For exemption benefits to begin on July 1 of the year you apply, your application, and supporting documentation, must be postmarked or submitted on or before March 15. If the due date falls on a weekend or a national holiday, the deadline will be the next business day.

Applications that are received after the filing deadline will be processed for July of the following year.

2023/2024 Tax Year

The deadline to apply for the 2023/2024 tax year is March 15, 2023.

  • If you’re eligible for the abatement and your 2023/2024 application is postmarked or submitted on or before the deadline, you’ll start receiving benefits on July 1, 2023.
  • If you’re eligible for an exemption and your 2023/2024 application is postmarked or submitted after the deadline, you’ll start receiving benefits on July 1, 2024.

To apply, you must complete an application and provide all required documents.

Mail your application and documents to:

NYC Department of Finance
Commercial Exemptions and Abatements
59 Maiden Lane, 22nd Floor
New York, NY 10038

Once your abatement application is received by the Department of finance (DOF), they will send you an acknowledgment letter.  They will review it and send you a decision letter or a letter requesting additional information within 90 days.

Online

Download the Childcare Center Abatement application.

In Person

You can apply at a DOF Business Center. Get DOF Business Center locations.

Property owners must provide a completed Childcare Center Abatement Application and a childcare provider permit issued by DOHMH.

Property owners must also submit determinations that have been certified by a licensed engineer, architect, CPA or other licensed professional regarding the size of the premises, and costs incurred for construction, conversion, or alteration to create new childcare seats in a childcare center that is compliant with the NYC Health Code.

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