Governor Andrew Cuomo recently announced the formation of a new program Start-Up NY. The Program is designed to provide tax incentives for businesses which relocate, start-up or expand in New York State through affiliations with public and private universities, colleges and community colleges.
Businesses will be able to locate in these areas and operate tax free for periods ranging up to 10 years. Benefits include:
- No income tax for employees
- No business or corporate income tax
- No sales tax
- No property tax
- No franchise fees
Start-Up NY will attempt to attract new business and job creation to NYS capitalizing on the strength and breadth of The State of New York University (SUNY) system, particularly in upstate NY. In New York City, Long Island and Westchester County, businesses must be start-ups or one of a number of broadly defined “high technology” businesses. Eligible businesses must also:
- Be a new company in New York State;
- Be a company from out-of-state that is relocating to New York State; or
- Be an expansion of an existing company in NYS (these businesses will have to demonstrate that they creating new jobs and not moving existing jobs from elsewhere in the State)
Eligible businesses must create new jobs on land or property affiliated with public or private colleges and universities. Furthermore, the business must align itself with or support a participating school’s academic mission.
Although there are many types of business that will be eligible for this program, there are many other types of businesses that will not be eligible including retail and wholesale businesses, restaurants, hospitality, professional services and others.
The program is slated to formally begin January 1, 2014 but applications have been issued and will be accepted prior to 2014.
The Wiss Economic Incentive Group (“TWEIG”) strives to provide opportunities for clients, ranging from small to middle market, to access available benefits offered by Federal, State and Local agencies to conserve working capital for business expansion including capital expenditures, creation of jobs and increase profitability.