Courtesy Ferrara Manufacturing
MOHAMED FARGHALY
mfarghaly@queensledger.com
As the cost of living continues to rise in New York City, particularly in the borough of Queens, Governor Kathy Hochul is pushing a key tax incentive aimed at spurring business growth and job creation. The Relocation and Employment Assistance Program (REAP) is designed to help businesses move to areas like Queens, providing crucial support at a time when small businesses are struggling with inflation, high rent, and competition from neighboring states.
Since its inception, REAP has successfully attracted businesses to Queens by offering tax credits for relocating jobs from outside the city or Manhattan below 96th Street to designated areas in the city’s outer boroughs. The program has been particularly beneficial for small businesses, which make up the backbone of Queens’ economy. With a growing need for affordable and sustainable business opportunities, local leaders and economic development advocates are urging for the program’s extension beyond its current expiration in 2025.
Tom Grech, President of the Queens Chamber of Commerce, explained the significance of the program. “The most important part about all of this is that the rest of the world is not waiting for New York to figure out how to be efficient and affordable,” Grech said. “This program helps level the playing field, especially for small businesses, and allows them to compete in a city that’s becoming increasingly expensive.”
The REAP program offers businesses a $3,000 tax credit per eligible employee for up to twelve years if they relocate to qualifying locations in Queens or other outer boroughs. These designated areas are typically revitalization zones in the city’s industrial and commercial districts. In areas outside these zones, businesses can still receive a $1,000 annual credit for each qualifying employee. With benefits like these, REAP has become an attractive option for businesses seeking to expand or relocate to Queens.
Queens is home to roughly 57,000 small businesses, many of which are struggling to survive amid rising operational costs. “90% of those businesses have 10 or fewer employees,” Grech said, emphasizing the challenges of sustaining these enterprises. “This effort has been on the books for years, helping ensure that small businesses can stay open in places like Queens.”
Despite its success, REAP faces an uncertain future. Coalition members from the Five Borough Jobs Campaign, a coalition of local economic development corporations, business improvement districts, and businesses, are advocating for the program’s continued support. The coalition, which is focused on bringing new jobs to New York’s communities, believes REAP is vital to addressing the affordability crisis and ensuring that small businesses have access to the resources they need to thrive.
The program’s extension is currently under consideration in this year’s state budget, with advocates urging state lawmakers to reaffirm its importance. Grech stressed that as New York recovers from the economic toll of the COVID-19 pandemic, supporting small businesses through programs like REAP is more crucial than ever.
“I think it’s really, really important to extend this program, especially as we look to rebuild in the post-COVID era,” Grech said. “This is about reaffirming our commitment to small businesses, which are the lifeblood of our community.”
Queens residents and business owners alike are hopeful that the state will continue to support the REAP program, ensuring that local businesses can prosper in the face of growing economic challenges. While the program’s future remains uncertain, advocates remain committed to fighting for the job creation and economic sustainability that businesses in Queens need to succeed.
The REAP program, which is slated to expire in June 2025, will play a key role in the future of business development in the outer boroughs. As local leaders push for an extension, the focus remains on securing a more affordable and equitable environment for businesses and workers across New York City.
For more information about the Five Borough Jobs Campaign, visit fiveboroughjobs.com, for more information about the the REAP program, visit tinyurl.com/reapnyc.
