New York State Incentives
START-UP NY is Governor Cuomo’s initiative to create tax free communities for new and expanding businesses on SUNY and other university campuses across the state. Businesses will be able to locate in these zones and operate 100% tax-free for 10 years.
- No income tax.
- No business or corporate state or local taxes.
- No sales tax.
- No property tax.
- No franchise fees
- For more information, click here
The following is the link to the START-UP NY emergency and permanent regulations. ESD will be accepting public comment by email on these regulations until 5 pm on Monday, December 30, 2013. If you have any comments please email Jennifer Chung, Assistant Counsel, at email@example.com.
Start-Up New York Regulations
Start-Up New York Statute
Guide for Submitting Designation Plan
Start-Up NY Excel Template
Checklist (For Designation of Areas)
Other Business ProgramsEmpire State Development provides a variety of assistance aimed at helping businesses; whether you are an international company looking to make a move or a small business owner wanting to access capital – ESD is here to help.
We offer loans, grants and tax credits, as well as other financing and technical assistance, to support businesses and encourage their growth within New York State.Through the New York State Consolidated Funding Application (CFA), a single application for multiple sources of state funding, New York State is soliciting grant applications for funding to advance the priorities of the Regional Economic Development Councils (REDC).The following programs are available through the CFA:
- Empire State Development Grant Funds
- Excelsior Jobs Tax Credits
- Market New York
- Business Incubator and Innovation Hot Spot
- Economic Development Purposes Fund
- Strategic Planning and Feasibility Studies
- Environmental Investment Program
- Industrial Development Bond Cap
Please refer to www.governor.ny.gov for announcements and updates on future funding opportunities through the CFA
Contact/Additional Program Information
For more information, eligible applicants should visit http://regionalcouncils.ny.gov/, which includes contact information for the appropriate ESD Regional Office covering the project area.
State Small Business Credit InitiativeOn June 28, 2011, Governor Andrew M. Cuomo signed legislation that established the use of State Small Business Credit Initiative (SSBCI) funds for three economic development programs. These programs will enable small businesses to leverage new capital and credit to help them create private sector jobs.
The SSBCI is part of President Obama’s Small Business Jobs Act of 2010, which supports state-level small business credit programs. New York’s access to $55.4 million in SSBCI funds is expected to generate over $554 million in new private capital for small businesses.
Grant, Loan and Tax Credit Programs:
Build Now-NY/Shovel Ready Program
Champlain Bridge Assistance Program
Commercial District Revolving Loan Trust Fund
Community Development Financial Institution Assistance Program (CDFI)
Economic Development Fund
Economic Development Purposes Grants
Economic Transformation Program
Entrepreneurial Assistance Program (EAP)
Excelsior Jobs Program
Environmental Investment Program
Global Market Export Services (GEMS)
Healthy Food & Healthy Communities Fund
Industrial Effectiveness Program (IEP)
Job Development Authority (JDA) Direct Loan Program
Jobs Retention Program (ESJRP)
Manufacturing Assistance Program (MAP)
Metropolitan Economic Revitalization Fund (MERF)
Micro Lending Program
Minority and Women-owned Business Lending (MWBDL) Program
Minority and Women Revolving Loan Trust Fund Program
Regional Council Capital Fund
Regional Revolving Loan Trust Fund (RRLTF)
Small Business Revolving Loan Fund
Transportation Capital Assistance Program
Urban and Community Development Program (UCDP)
World Trade Center Job Creation & Retention Program (JCRP)
Brownfield Cleanup Program
New Markets Tax Credits
New York State Film Tax Credit Program
New York State Commercial Tax Credit
Other Tax Credits & Incentives
Taxes & IncentivesNew York State now has one of the lowest corporate income tax rates in the Northeast. In addition to lower corporate taxes, New York offers a variety of incentives to companies expanding or relocating in the Empire State. These include:
Cash Incentives. New York State offers low-cost loans and grants to companies that invest significant capital in the State and commit to the creation and retention of private sector jobs. Terms can be customized to each project; other criteria apply.
Emerging Technologies. New York State has enacted tax incentives for: investors in Qualified Emerging Technology Companies (QETCs); job creation by QETCs; and R&D investment, R&D expenses and qualified high technology training costs incurred by QETCs.
Investment Tax Credit (ITC). Businesses that create new jobs and make new investments in production property and equipment may qualify for tax credits of up to 10% of their eligible investment. New businesses may elect to receive a refund of certain credits and all unused credits can be carried forward for 15 years.
Lower Corporate Tax. 6.5% rate for Qualified New York State Manufacturers.
No Personal Property Tax. Unlike many other states, which tax both real property and personal property, property taxes in New York State are imposed on real property only. Personal property, whether tangible or intangible, is exempt from state and local taxes.
Real Property Tax Abatement. To encourage development, expansion and improvement of commercial property, a 10-year property tax abatement is available to offset increased assessments due to improvements to business and commercial property.
Research and Development (R&D) Tax Credit. Investments in R&D facilities are eligible for a 9% corporate tax credit. Additional credits are available to encourage the creation and expansion of emerging technology businesses, including a three-year job creation credit of $1,000 per employee and a capital credit for investments in emerging technologies.
Sales Tax Exemptions. New York State offers exemptions for purchases of production machinery and equipment, research and development property, and fuels utilities used in manufacturing and R&D. Other exemptions may be available through local Industrial Development Agencies (IDAs). Visit your local regional office page for a list of IDA contacts in your area.
Single Sales Factor Apportionment. Formula for Taxable Income.
Contact your ESD Regional Office or call the Main Program Administrator at (518) 292-5300.
New York State Department of Tax & Finance
Other Financing and Technical Assistance:
Business Mentor NY
New York State Surety Bond Assistance Program (NYSSBAP)
The Capital Access Program
Export Marketing Assistance Service (EMAS)
Governor's Office for Motion Picture & Television Development
The Innovate NY Fund
Linked Deposit Program (LDP)
New York Beverage Business (Beer, Spirits & Wine)
New York Empowerment Zone (NYEZ)
New York State Land Bank Program (NYSLBP)
Procurement Assistance Program
World Trade Center Rent Reduction Program (WTC RR)
For more information go to the Tax Department's Summary of Tax Provisions of the 2009-10 Budget. New York State Tax Guide for New Businesses
NATIONAL GRID INCENTIVES
Emission Reduction Credits (Nitrogen Oxide - NOx)National Grid owns NOx emission reduction credits and can sell these ERCs at below market rates, when they can be appropriately applied to site location or expansion opportunities. Benefits from this service are measured in the form of jobs and investment to a community/region served by National Grid. Contact Us for More Information
National Grid Excelsior Jobs Program (“EJP”) - Electric
- Sponsored by the New York State Department of Economic Development
- Incentive program commencing with tax years beginning in 2011
- For non-residential customers who add additional load
- Existing customers must increase demand by the lesser of twenty-five (25) percent or 100 kW
- New customers adding new, permanent load will have a zero baseline
- Must be qualified for discounted rates by the NYS Department of Economic Development
- Qualified customers are eligible for discounted rates for up to a ten-year term
- EJP Load will be subject to all surcharges and adjustments
- EJP customers will not be subject to Rule 57- Revenue Decoupling Mechanism on the EJP portion of their load
|Qualifying EJP Load||Delivery Rates - Per kW|
|SC3 - Secondary||$3.74|
|SC-3A Sub Transmission||$2.51|
*SC7 customers will be subject to the rates of their Parent Service Classification above.
** All EJP Customers pay full standard tariff charges on their non-EJP load.
The EJP replaces the Empire Zone ("EZR") Program which is closed to new subscribers. Customers who qualify for the EJP by the NYS Department of Economic Development will receive discounted rates on their additional load, based on the current EZR rates, which are equal to the Company's incremental cost of providing service.
The filing may be found on the NYSPSC Electric Rates and Pricing web page at: http://us1infonet/sites/rates_energysupply_ne/Pages/Recent_Filings_NewYork.aspx
National Grid Excelsior Jobs Program (“EJP”) – Natural Gas
Sponsored by the New York State Department of Economic Development
Commencing with tax years beginning in 2011
Eligible customers are those whose end use is non-residential in nature; and
Who qualify for service under and in accordance with the provisions of customers served under Service Classification Nos. 2, 3, 5, 7, or 8; and,
Are certified by NYS Department of Economic Development as being eligible to receive the benefits; and,
Who permanently increases their annual base load gas consumption by twenty-five percent (25%) or more
Determined by a monthly base usage pattern at the premises, based upon the historical consumption for the twelve month period immediately preceding the customer's receipt of its initial EJP certificate
Delivery rates below shall apply to any gas consumption above the stated monthly base load:
|Qualifying EJP Load||Delivery Rates|
|Service Classification No. 2 Commercial||$.0832 per therm|
|Service Classification No. 2 Industrial||$.0618 per therm|
|Service Classification No. 3||$.0024 per therm|
|Service Classification No. 5||$.0184 per therm|
|Service Classification No. 7||$.0049 per therm|
|Service Classification No. 8||$.0223 per therm|
Where actual gas usage increases over such base by twenty-five percent in each month, then applicant will be eligible for the benefits of this Rider for that month. All monthly gas consumption not meeting the discount qualifications of this Rider shall be billed at the applicable Service Classification rates and charges.