Biggins Lacy Shapiro & Company, LLC

New York Economic Development Incentive Programs

Grants

Business Expansion & Retention Grants: Empire State Development (ESD) provides discretionary grants to support business attraction, expansion, and retention projects.  The specific amount of the grant will depend on several factors including the level of capital investment, the number of jobs created and/or retained, the industry and nature of the operations at the project site, project wages and the location of the project.

TAX CREDITS

Excelsior Jobs Program: One of New York State’s signature economic development incentive tools, this discretionary program provides fully refundable tax credits to companies in strategic industries that create jobs and make capital investments. The minimum number of new jobs needed to qualify for the program varies by industry. Excelsior Jobs is comprised of the following refundable tax credits.

  • Jobs Tax Credit: A credit of up to 6.85% of wages per net new job to cover a portion of the associated payroll cost.
  • Investment Tax Credit: Valued at up to 2% of qualified investments.
  • Research and Development Tax Credit: A credit of up to 50% of the Federal R&D credit up to 3% of research expenditures in New York State
  • Real Property Tax Credit: Available to companies locating in certain distressed areas and to Regionally Significant Projects - businesses in strategic industries that meet higher employment and investment thresholds.

Brownfield Cleanup Program (BCP): This program offers a refundable tax credit to support site cleanup and the redevelopment of qualifying brownfield sites.  Redevelopment credits may be increased depending on the cleanup level obtained and the site location. 

TAX EXEMPTIONS

Sales Tax Exemptions: Purchases of production machinery and equipment, property, materials used in manufacturing and/or R&D, and fuels/utilities used in manufacturing and R&D are exempt from sales tax. Local Industrial Development Agencies (IDAs) have the discretionary authority to provide a 100% exemption of state and local sales tax to assist economic development projects.  

Personal Property Tax: The State of New York and local governments do not levy a tax on personal property owned by businesses or individuals.

SPECIAL ZONING

START-UP NY:  This program establishes “tax free” zones on designated areas of public universities, community colleges, and technical schools affiliated with the State University of New York (SUNY) as well as a select number of private universities.  While this program is active across New York State, there is a particular focus on spearheading job creation and private sector investment on or near college campuses in Upstate New York.  Startup businesses and early stage companies that expand in or relocate to New York and partner with a college or university may qualify for a 10-year exemption on state corporate income taxes.  Employees that work at an approved business are exempt from all state personal income taxes for the first 5 years of the 10-year program.  Beginning in year 6 and ending in the 10th year of the program, personal income taxes on the first $200,000 of annual income earned ($250,000 for a head of household, and $300,000 for taxpayers filing a joint return) are exempt.

OTHER PROGRAMS

Regional Economic Development Councils: New York is divided into 10 economic development regions with each region comprised of its own Regional Economic Development Council (REDC).  These councils are each led by board members appointed by the governor to formulate economic development strategies for their respective regions. On an annual basis, the REDCs collaborate with state agencies to recommend discretionary grants, Excelsior Jobs tax credits, and other incentives to support business attraction and expansion projects.

Last Updated: June 2018



 
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