NY State RPTL §467-m
467-m Tax Abatement Calculator
Run the 35-year present value of New York State’s office-to-residential conversion tax exemption on your candidate building. Built by Robert Khodadadian — broker on the $135M Vanbarton 6 East 43rd Street and $105M Quantum Pacific + Metro Loft 101 Greenwich Street conversions.
The 467-m Window Is Closing
NY State RPTL §467-mConstruction must commence by June 30, 2031for the full 35-year tax exemption. Projects completing 2032–2035 step down to 25 years; 2036–2039 to 20 years; after June 30, 2039 are ineligible entirely.
Show year-by-year schedule
| Yr | % Exempt | Savings | NPV |
|---|---|---|---|
| 1 | 100% | $34.58M | $26.38M |
| 2 | 100% | $34.58M | $24.66M |
| 3 | 100% | $34.58M | $23.04M |
| 4 | 100% | $34.58M | $21.54M |
| 5 | 100% | $34.58M | $20.13M |
| 6 | 100% | $34.58M | $18.81M |
| 7 | 100% | $34.58M | $17.58M |
| 8 | 100% | $34.58M | $16.43M |
| 9 | 100% | $34.58M | $15.35M |
| 10 | 100% | $34.58M | $14.35M |
| 11 | 100% | $34.58M | $13.41M |
| 12 | 100% | $34.58M | $12.53M |
| 13 | 100% | $34.58M | $11.71M |
| 14 | 100% | $34.58M | $10.95M |
| 15 | 100% | $34.58M | $10.23M |
| 16 | 100% | $34.58M | $9.56M |
| 17 | 100% | $34.58M | $8.94M |
| 18 | 100% | $34.58M | $8.35M |
| 19 | 100% | $34.58M | $7.81M |
| 20 | 100% | $34.58M | $7.29M |
| 21 | 100% | $34.58M | $6.82M |
| 22 | 100% | $34.58M | $6.37M |
| 23 | 100% | $34.58M | $5.95M |
| 24 | 100% | $34.58M | $5.57M |
| 25 | 100% | $34.58M | $5.20M |
| 26 | 80% | $27.66M | $3.89M |
| 27 | 60% | $20.75M | $2.73M |
| 28 | 40% | $13.83M | $1.70M |
| 29 | 20% | $6.92M | $794K |
| 30 | 0% | $0 | $0 |
| 31 | 0% | $0 | $0 |
| 32 | 0% | $0 | $0 |
| 33 | 0% | $0 | $0 |
| 34 | 0% | $0 | $0 |
| 35 | 0% | $0 | $0 |
Estimates use Class-2 tax rate 0.12289, 5% cap rate for residential AV imputation, 45% Class-2 assessment ratio. Schedule approximates the 467-m statutory tier (Years 1–25 100% exempt; 26–30 step down 80/60/40/20/0%). Always verify with a 467-m specialist before underwriting commits.
How the math works
The calculator estimates: (a) the residential NOI you’d produce post-conversion (gross rent − OpEx), (b) the would-be property tax on that converted residential value (capitalized at 5%, applied at the Class-2 assessment ratio of 45% × tax rate), and (c) the 35-year schedule of tax exemptions you’d capture under 467-m. Each year’s savings are discounted back to today at your specified discount rate. Years 1–25 are 100% exempt; years 26–30 step down 80/60/40/20/0%.
This is an order-of-magnitude underwriting tool, not a substitute for a tax-counsel-vetted memo. Have your CPA + REBNY-counsel run the actual numbers before you commit. We’re happy to make introductions to 467-m specialists we’ve worked with on past conversions.
Want help on a real candidate?
Robert sits at the center of Manhattan’s off-market network. For a confidential read on whether your Class B or C office building is a 467-m candidate, get in touch directly.
FAQ
467-m tax abatement — common questions
Eight substantive questions principals ask before committing to a 467-m office-to-residential conversion project. Robert brokered the $135M Vanbarton 6 East 43rd and $105M Quantum Pacific 101 Greenwich conversions.
What is the 467-m tax abatement in NYC?
RPTL §467-m, enacted in the 2024-25 NY State budget (Chapter 56 of the Laws of 2024), provides up to a 35-year property tax exemption for office-to-residential conversions in Manhattan south of 96th Street and qualifying parts of the Bronx, Brooklyn, and Queens. Construction must commence by June 30, 2031 for the maximum 35-year benefit; later completions step down to 25 or 20 years; ineligible after June 30, 2039.
What are the 467-m affordability requirements?
467-m requires a minimum of 25% of converted residential units to be permanently affordable. The exact AMI ceiling depends on the chosen affordability mix — deeper affordability (lower AMI) qualifies for incrementally more abatement value. The HCR enrollment application must be filed within one year of completion. Skyline can introduce 467-m specialist counsel + tax-abatement consultants we've worked with on past conversions.
How much is a 467-m abatement worth on a Manhattan office conversion?
Order-of-magnitude: a typical Manhattan Class B office conversion with $40-80M in post-conversion residential AV captures $1-3M annually in tax savings during years 1-25 (100% exempt), stepping down through years 26-30. Net present value at a 7% discount rate typically lands at $20-60M+ for a mid-sized conversion. The 467-m calculator at /467m-calculator runs the actual numbers with your specific inputs.
What is the difference between 467-m, 421-a, and J-51?
467-m (2024) is the office-to-residential conversion abatement (35-year exemption, sunset June 30, 2031). 421-a (1971-2022, expired) was the new-construction multifamily abatement (10-25 years). 485-x (2024) replaced 421-a for new construction. J-51 (1955-2022, expired then reauthorized in 2024) covers major-cap-improvements + conversion of certain pre-1974 buildings (up to 14-year exemption + 34-year abatement). Each has distinct eligibility and affordability rules.
What buildings are good 467-m candidates?
Strong 467-m candidates: pre-1991 Class B / C office (Building Code class O*, L*), small-to-medium floorplate (8,000-25,000 SF/floor allows efficient unit layouts), good window-line + ceiling-height, Manhattan submarket south of 96th Street, building structurally suited to plumbing-stack additions, and a basis low enough that conversion + abatement math beats the residential underwriting. Skyline pre-screens candidates against this checklist.
When does the 467-m program expire?
Construction must commence by June 30, 2031 for the maximum 35-year exemption. Projects completing 2032-2035 step down to 25 years; 2036-2039 to 20 years; ineligible entirely after June 30, 2039. The first temporary CO must be reached by December 31, 2039. The countdown clock at /office-conversion-specialist shows real-time days remaining.
Can I combine 467-m with other tax incentives?
467-m can stack with certain federal incentives (LIHTC for the affordable units, accelerated depreciation through cost segregation) but generally cannot combine with overlapping NYC abatements like 485-x. Foreign Trade Zones, Opportunity Zones, and historic-tax-credit pathways have specific compatibility rules — always run through 467-m specialist counsel before committing structure.
What is Article 7C and how does it affect NYC office conversions?
Article 7C (NY Multiple Dwelling Law) is the legal framework that allows certain pre-1977 commercial loft buildings (especially in TriBeCa, SoHo, parts of FiDi) to be legally converted to residential without the standard certificate-of-occupancy change process. Article 7C buildings have specific eligibility, tenant-protection, and registration rules. A 467-m conversion within an Article 7C building requires both regulatory pathways to align.