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last-minute vote by the state Senate has secured the renewal of a crucial tax credit program that was seen as vital to saving Downtown Manhattan. The Relocation Employment Assistance Programs, or REAP and LM-REAP, were extended despite opposition from lawmakers who viewed them as unnecessary handouts.

    The programs provide annual tax credits of up to $3,000 per employee to companies relocating within the city or from outside New York State. LM-REAP, in particular, was credited with supporting 16,000 jobs and leasing hundreds of thousands of square feet of office space in Lower Manhattan since its inception after 9/11.

    Proponents warned that if the programs expired on June 30, tens of thousands of jobs and many office buildings would be at risk. Despite initial doubts, both measures were backed by Governor Kathy Hochul and other key stakeholders, including the Real Estate Board of New York and local business groups.

    The Senate vote was a narrow 41-18, with deputy majority leader Michael Gianaris ultimately voting in favor after reportedly receiving pressure from various parties. The Assembly had already approved the renewals with a wide margin. A new program, RACE, offering $10,000 annual tax credits to companies moving from outside New York State, was also established as part of the deal.