This report, mandated by the New York City Charter, identifies and describes tax expenditure programs related to taxes administered by the City and provides tax expenditure estimates based on available data.
When representatives of the real estate industry and construction unions failed to reach an agreement over wages in January, the 421-a tax benefit program came to a halt for the construction of new multifamily housing.
The 421-a property tax exemption is the city’s largest tax expenditure, costing more than $1 billion
in forgone taxes each year. The exemption dates back to the 1970s and is currently up for renewal