Amid rising costs and mounting economic pressures on small businesses, Queens leaders joined state lawmakers, city officials, and business advocates last week in Albany to champion a package of tax incentives aimed at sustaining job growth and driving economic development across New York City.
On May 28, State Senator Andrew Gounardes and Assemblymember Grace Lee held a press conference with the Queens Chamber of Commerce, representatives from Mayor Eric Adams’ administration, and economic development organizations to advocate for SB8063 and A8676. The proposed legislation includes three key programs: the Relocation and Employment Assistance Program (REAP), the Lower Manhattan Relocation and Employment Assistance Program (LM-REAP), and the newly introduced Relocation Assistance Credit for Employees (RACE).
Supporters emphasize that these programs are essential for addressing New York City’s affordability crisis, combating high commercial vacancy rates, and helping small businesses—particularly in Queens—remain competitive and grow.
“Businesses are feeling the affordability crisis acutely,” said Tom Grech, President of the Queens Chamber of Commerce and Co-Chair of the Five Borough Jobs Campaign. “When businesses struggle, job growth slows, and neighborhoods feel the impact. SB8063 provides solutions to support local businesses, help them expand, and create good-paying jobs. Albany cannot delay in making these programs available to those who strengthen our city.”
Read More: Queens Chamber of Commerce Business Expo & Luncheon
REAP: Driving Jobs and Economic Growth
The REAP program offers eligible businesses a $3,000 tax credit per employee each year 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. Businesses outside these zones can still receive $1,000 per employee annually. In Long Island City alone, REAP has helped more than a dozen businesses create over 2,600 jobs.
“Programs like REAP have allowed companies like Ferrara Manufacturing to stay rooted in New York while expanding locally,” said Laura Rothrock, President of the Long Island City Partnership. “This incentive has supported more than 2,600 jobs here. Renewing REAP encourages success stories like this, instead of letting them fade.”
Since 1987, REAP has attracted businesses to commercial corridors in northern Manhattan and the outer boroughs. LM-REAP, established in 2003, targeted Lower Manhattan’s post-9/11 recovery. Both programs provide $3,000 per employee annually for up to twelve years, drawing companies from sectors including engineering, biotech, design, and consulting. Nearly 16,000 employees have benefited, with 178 firms claiming $26.1 million in credits in FY25 alone.
With New York City office vacancy rates at historic highs and programs supporting median salaries of $91,371 and over $2 billion in wages from out-of-state firms, advocates argue that extending these incentives is vital for sustaining employment and economic growth.
Local Success Stories Highlight Impact
Ferrara Manufacturing, a Queens-based luxury apparel maker, credits REAP for enabling its expansion in New York.
“Business owners aren’t seeking a handout; we want the opportunity to succeed and uplift the city we love,” said Gabrielle Ferrara Rose, COO and President of Ferrara Manufacturing. “REAP was key to our growth, and businesses across New York City depend on this legislation to continue thriving.”
The proposed legislation also includes LM-REAP, aimed at reducing record office vacancies in Lower Manhattan, and RACE, designed to attract out-of-state businesses and utilize underused office space. RACE alone is projected to generate approximately $385 million in economic activity by bringing new employers to the city.
Small Business Support in Queens
Queens is home to roughly 57,000 small businesses, 90% of which employ 10 or fewer people. Advocates stress that these incentives are not just helpful—they are urgent.
“New Yorkers are facing an affordability crisis, and elected officials must act to protect and grow our city’s business ecosystem,” said Senator Gounardes. “These programs have already revitalized local business corridors, filled jobs, and activated vacant office spaces. Allowing them to lapse now would hurt families and communities across the city.”
Members of the Five Borough Jobs Campaign, a coalition of local development groups and business organizations, met with lawmakers in Albany to emphasize the need to extend REAP and related incentives beyond their scheduled expiration this month.
Economic Recovery and Future Growth
As New York continues to recover from the long-term effects of the COVID-19 pandemic, supporters argue that extending and expanding these programs is critical for small business survival, job creation, and equitable economic development.
“Lower Manhattan remains one of the country’s most dynamic economic centers, yet high vacancy rates require targeted tools to maintain competitiveness,” said Assemblymember Grace Lee. “Programs like LM-REAP and RACE attract new employers, fill vacant office space, and sustain vibrant business corridors—all while creating opportunities for working families. With the legislative session ending soon, swift action is essential to maintain and expand these programs.”
Frequently Asked Questions
What are the REAP and LM-REAP programs?
The Relocation and Employment Assistance Program (REAP) and the Lower Manhattan Relocation and Employment Assistance Program (LM-REAP) are New York City tax incentive programs. They provide businesses with annual tax credits of up to $3,000 per employee for relocating to designated areas in the outer boroughs or Lower Manhattan.
Why are Queens leaders advocating for these incentives?
Queens leaders argue that these programs are vital for sustaining job growth, supporting small businesses, and reducing high commercial vacancy rates. They believe renewing and expanding the incentives will help stabilize the city’s economy and create new opportunities for local workers.
How do small businesses benefit from these programs?
Small businesses, especially those with fewer than 10 employees, gain financial relief through tax credits. These incentives allow them to reinvest in growth, hire more workers, and remain competitive in a high-cost environment like New York City.
What is the new RACE program?
The Relocation Assistance Credit for Employees (RACE) is a proposed tax incentive designed to attract out-of-state businesses to New York City. It focuses on filling underutilized office space and is projected to generate nearly $385 million in economic returns.
How has REAP impacted Queens so far?
In Long Island City alone, REAP has supported over 2,600 jobs by helping businesses relocate and expand. Companies like Ferrara Manufacturing credit the program with allowing them to stay rooted in New York while creating new opportunities.
What happens if these incentives expire?
If the programs are not renewed, many businesses could face higher operational costs, reduced hiring ability, and potential relocation outside New York City. Leaders warn this could worsen the city’s affordability crisis and increase unemployment.
Who is leading the effort to extend these programs?
State Senator Andrew Gounardes, Assemblymember Grace Lee, the Queens Chamber of Commerce, Mayor Eric Adams’ administration, and the Five Borough Jobs Campaign are among the key advocates pushing for SB8063 and A8676 to be passed in Albany.
Conclusion
Queens leaders, state lawmakers, and business advocates are making it clear: job-creating tax incentives like REAP, LM-REAP, and the new RACE program are essential tools for sustaining New York City’s economic growth. With small businesses facing rising costs, high office vacancy rates, and ongoing affordability challenges, these incentives provide a proven pathway to attract investment, create jobs, and keep businesses rooted in local communities.