Whether your business is powered by people, technology, resources, and market access you will find that Upstate New York can deliver. Upstate New York has a vibrant and diverse economy with everything a company needs to succeed. With major urban centers like Buffalo, Syracuse, Utica/Rome, and Albany, hundreds of charming villages and towns, and beautiful tracts of farmland and forest - Upstate New York is worth digging in to.
New York State has become the nation's leader in cutting taxes. Nearly all taxes in New York State have been cut, with substantial reductions achieved in business, estate, sales, property and personal income taxes.
New York State now has one of the lowest corporate income tax rates in the Northeast.
In addition to lower taxes, New York offers a variety of incentives to companies expanding or relocating in the Empire State. These include:
- 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.
- Research and Development Tax Credit. Investments in research and development 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 (IDA.)
- 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.
- 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.
- Today, there are over 8,700 certified businesses employing more than 344,000 people in 85 Empire Zones statewide. A map of the 85 zone locations may be found by reviewing the Empire Zones “NYS Zone Map” section of Empire State Development’s website.
Download the 2009 NYS Handbook for State and Local Taxes
Empire Zones
Your business could qualify to become tax-free if it expands in or relocates to one of New York State's 85 Empire Zones. Empire Zones (EZs) are designated areas throughout the State that offer special incentives to encourage economic and community development, business investment and job creation. More information.
Single Sales Factor
Phases in a single sales factor (i.e., 100% receipts allocation) business allocation percentage for determining amount of corporate income subject to New York State tax.
- For taxable years beginning on/after January 1, 2006 and before January 1, 2007, prescribes an allocation formula of: 20% property; 20% payroll; 60% sales;
- For taxable years beginning on/after January 1, 2007 and before January 1, 2008, prescribes an allocation formula of: 10% property; 10% payroll; 80% sales; and
- For taxable years beginning on/after January 1, 2008, prescribes for a single sales factor allocation percentage.
For more information go to the NYS Tax Department's Summary of Tax Provisions of the 2009-10 Budget.
Favorable Environmental Policies/Trends Compared to Closest Neighboring State1
- Generous incentives for remediation projects - Refundable tax credits of up to 22% of eligible cleanup and redevelopment costs.
- Reimbursement programs for municipalities to investigate and cleanup brownfields to prepare for redevelopment - In contrast, New Jersey DEP instituted initiatives to recover natural resource damages for contaminated sites and brownfields - cost of claims to be borne by NJ businesses.
Continued and Significant Investment in Technology Growth1
- Annual public/private R&D expenditures of more than $2 billion.
- Number 4 in the nation in total number of high-tech establishments.
- New York Centers of Excellence (since 2001, state-of-the-art research facilities to further advancements in nanotechnology, environmental sciences, engineering, information technology and life sciences).
- More than 5,100 Grants, Awards and Contracts from National Institute of Health worth $1.9 billion.
Positive Business Climate
- New York State ranks third in the nation in high technology employment (305,300)1,
- high-tech payroll ($21.4 billion)1 and,
- fourth in number of high-tech establishments (18,500)3
International Investment1
If you're looking for Foreign Direct Investment (FDI) to your state or region, it helps to focus your attention on those countries that have shown the greatest proclivity to invest in the United States in the past. Based on data (current through 2006) culled from the Bureau of Economic Analysis FDI database, the biggest foreign investors in the U.S. are:
- Switzerland -- $1.427 trillion
- United Kingdom -- $1.282 trillion
- France -- $815 billion
- Netherlands -- $767 billion
- Germany -- $675 billion
- Canada -- $654 billion
- Japan -- $612 billion
After that, the numbers fall off fast.
- Australia -- $101 billion
- Spain -- $57 billion
- Italy -- $54 billion
- Sweden -- $32 billion
- Denmark -- $25 billion
- Korea -- $23 billion
- Saudi Arabia -- $17 billion
- United Arab Emirates -- $13 billion
- Hong Kong -- $8.4 billion
- Netherlands Antilles -- $7.4 billion
- Greece -- $4.9 billion
- Russia -- $4.8 billion
- Kuwait -- $3.9 billion
- Malaysia -- $1.6 billion
- Lebanon -- $1.4 billion
Upstate New York also boast one of of the Most Productive Workforces in the Nation1
- In manufacturing our workers generate a value of more than $6 for every dollar earned.
- Professional and managerial workers produce 39 percent more than the national average
- Manufacturing workers produce close to 16 percent more than the national average.
Our labor costs are also low. Our average manufacturing wage is $13.86 per hour - 27th among the 50 states. Yet our workforce standards are higher, and our training and educational resources far greater.
Training Support1
Our programs can pay up to 50% of eligible training expenses. New York State offers financial support and technical resources through such groups as the Workforce Investment Board and Technology Development Organizations to offset your costs for new hires and existing worker training. Whether your goals include Total Quality Management, statistical process control, lean manufacturing, faster turn around, new market penetration, or ISO standard achievement, we can help you find the best workers and maximize their performance for you.1
Human Resources1
You'll find skilled and semi-skilled workers, seasoned and up-and-coming talent, high-tech and non-tech specialists, workers with educational degrees and professional experience of every kind -- all in New York State. New York ranks first in degrees awarded in materials sciences, computer sciences and medical sciences, ranks second for degrees awarded in electrical engineering, mathematics, and biological sciences, and ranks third in civil and mechanical engineering. Search educational institutions.
1 Source: ESD
2 Source: Cornell Community Study
3 Source: American Electronics Association’s Cyberstates 2005 report
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