How long can the benefits of the 421A tax exemption last?

The 421A tax exemption is a significant incentive for developers in New York City aimed at encouraging the construction of affordable housing. The duration of the benefits associated with this program can last between 10 to 15 or even up to 25 years, depending on various conditions, such as the location and the type of project being developed. This extended period allows property owners significant savings on property taxes, making it a compelling option for long-term residential and commercial projects.

In New York City's context, ensuring affordability and promoting housing development is a key goal. The longer tax exemption period allows for a balance between incentivizing developers while also ensuring that a portion of the housing remains affordable for residents. This extended benefit period distinguishes the 421A exemption from other shorter-term programs aimed at similar goals.