Incentive Programs for Companies That Do Business in NYS
December 17, 2015
By Sharon Keenan, CPA
Amy Greenstein from Empire State Development (“ESD”) has been giving presentations on various incentive programs in New York State. Working with a broad range of industries in all stages of development, ESD supports a number of programs and incentives, including Start-Up NY, and the Excelsior Credit program. For more detailed information visit www.esd.ny.gov
There are q number of opportunities available in New York State, but many of the programs have somewhat nuanced requirements. Here is a broad overview of some of the programs available.
Early Stage Companies
Start-Up NY allows new companies or companies relocating from out-of-state who co-locate at 8 designated university sites, to pay no taxes for 10 years, including no income tax for employees and no sales, property or business taxes.
NYSTAR programs are designed to accelerate the growth of the state’s high- tech economy. NYSTAR administers the following state programs:
- Incubator and Innovation Hot Spot is in 10 incubators throughout the state operated by colleges, universities and not-for-profit organizations. The program offers the opportunity to co locate as well as access to support, services and tax benefits (for 5 years).
- Centers of Excellence support major upgrades of research facilities and other high technology and biotechnology capital projects allowing colleges, universities and research institutions to secure research funding that will lead to new job creation.
- Centers for Advanced Technology support university/industry collaborative research and technology transfer in commercially relevant technologies.
- Regional Technology Development Centers -- a network of 10 independent, not-for-profit organizations -- cultivate the growth of high-tech industry and help smaller manufacturers modernize.
- High Performance Computing Program is a multi-faceted program that ties the use of high- performance computing time along with the computational expertise. These are partnerships with computer centers to provide supercomputing to product developers; currently there are programs in the Rensselaer Technology Park in North Greenbush, N.Y. and with the Stony Brook Center for Computational Science (SBCCS) and Brookhaven Computational Science Center (CSC).
NY Ventures administers the state’s innovation investment funds, which provide financial capital to early-stage, technology-based businesses, and include the New York State Innovation Venture Capital Fund, Innovate NY Fund, and Minority- and Women-Owned Business Investment Fund.
Business Mentor NY is a web-based program designed to help entrepreneurs and small businesses connect with mentors and other entrepreneurs.
Entrepreneurial Assistance Program is a business boot camp focused on very early stage low-income- or minority-owned businesses.
Start- Up NY NY Ventures
JDA Direct Loan Program provides direct loans for the growth of manufacturing and other eligible businesses within New York State by assisting in financing a portion of the cost of acquiring and renovating existing buildings or constructing new buildings (“Real Estate” projects) or for purchasing machinery and equipment (“M&E” projects).
Qualified Emerging Technology Company Employment Credit is a program wherein tech sector companies with less than $10 million in revenue receive tax credits for R & D.
Later Stage Companies
Excelsior Jobs Program is a pay-for-performance program geared for Fortune 500 companies. The companies project new jobs and capital investment then receive credits based on what was created.
Start-Up NY is available for certain later stage companies moving from abroad.
Global NY is designed to help companies market services abroad so they can engage in export via opportunities including a loan fund and export marketing assistance.