NYC Department of Finance Proposes New ICAP Rules

The Department of Finance has released a proposed amendment to the ICAP rules that would reshape how completion of construction is defined.

The proposed change would give DOF far greater discretion over when construction is deemed complete, which may not align with the actual status of physical work. This makes it more important than ever for developers to carefully manage timelines, maintain thorough documentation, and evaluate different scenarios tied to construction schedules.  The value of an ICAP abatement is directly tied to a project’s completion date – a date which may no longer be in the developer’s control.

We encourage our clients to attend the public session on October 27, 2025, at 11:00 AM (via Teams) to share comments directly with DOF. BBG will also be in attendance and submitting our own comments.

We’ll be monitoring the rulemaking process closely and will continue to keep our clients updated to ensure they are well-positioned with the latest insights and guidance.

Contact Us

Please don’t hesitate to contact us here with any questions or to discuss how these updates may impact your property or development plans.

Written by: Frank D. Baquero and Jason C. Hershkowitz, Tax Exemptions and Zoning Incentives Practice.