The New York City council recently enacted Int. No. 799-B, which significantly increased the Commercial Rent Tax (CRT) exemption. The CRT applies to rent paid by commercial tenants located south of the center line of 96th Street in the borough of Manhattan. The new law will provide for a Small Business Tax Credit against the CRT. Taxpayers will not owe any CRT if their annual rent is under $500,000 and have total income of $5 million or less. A partial reduction from the CRT will be available when the annual rent is between $500,000 and $550,000 and have income between $5 million and $10 million. The credit will be available beginning July 1, 2018.
Categories: State & Local Tax, Tax, Tax Planning & Compliance