Pay zero taxes for 10 years? Yes, really.
Imagine what your company could do with the money saved by operating tax-free.
Business Tax-Free New York Area Elimination Credit
This credit would be calculated by the business when filing its tax return. For businesses with 100% of their operations (assets and payroll) in a tax-free area(s), the credit would eliminate any tax liability. For businesses with operations in and out of a tax-free area, the credit would be prorated based on the percentage of assets and payroll within a tax-free area(s).
Excise Tax on Telecommunication Services
A participating business may apply to the Tax Department for a credit equal to the amount of excise tax paid by the business on telecommunication services for services rendered within the tax-free area.
Metropolitan Commuter Transportation District (MCTD) Mobility Tax
This tax is levied on businesses based on their payroll expense within the MCTD and is paid quarterly. If a business is 100% located in a tax-free area, the business would be exempt from this tax once certified.
Sales and Use Tax
Once certified, a business would apply to the Tax Department to receive a credit or refund for sales, and use taxes paid for goods and services used or consumed by the business’s operation in a tax-free area(s).
Real Estate/Real Property Transfer Tax
Leases of real property in a tax-free area to an approved business are exempt from the New York State real estate transfer tax. This exemption also applies to any local real estate or real property transfer tax imposed locally.
Personal Income Taxes (New York State, New York City, Yonkers)
Employees hired for and whose jobs are certified as net new jobs in a tax-free area will pay no state or local income taxes for the first five years. For the second five years, employees will pay no taxes on income up to $200,000 for individuals, $250,000 for a head of household and $300,000 for taxpayers filing a joint return. There is an annual cap per business on the number of employees that qualify for this exemption and an annual cap statewide of 10,000 net new jobs. For example, there will be a maximum of 10,000 tax-free jobs after year one, 20,000 tax-free jobs after year two, etc.
Who is START-UP NY for?
To participate in the Start-UP NY Program, your company should:
Be relocating or expanding to New York State from in or out-of-state or internationally, to a college or university campus that aligns with your business specialty, and be able to create new jobs for the local community.
Company New to New York State
In order to be eligible as new to New York State, the business must not be operating or located within the state at the time it submits its application to participate in the Start-Up NY program. Also, the business must not be moving existing jobs into the tax-free New York area from another area in the state, as well as not have caused individuals to transfer from existing employment with a related person located in the state to similar employment with the business, unless upon approval from the commissioner.
Company from New York State
In order to be eligible as from New York State, the business must be an expansion of a company that already has employees in New York State. Expanding businesses applying for Start-Up NY will have to demonstrate that they are creating new jobs and not moving existing jobs from elsewhere in the state.
Business and Academic Alignment
The mission and activities of the business must align with or further the academic mission of the campus, college or university sponsoring the tax-free New York area in which it seeks to locate, and the business's participation in the Start-Up NY program must have positive community and economic benefits.
Creation of New Jobs
After its first year of operation, the business must maintain net new jobs. The average number of employees in the state during the year must equal or exceed the one from the preceding year of its application to locate in a tax-free New York-area. The average number of employees of the business and its related persons in the state is determined by adding the total number of employees of the business and its related persons in the state on March 31st, June 30th, September 30th, December 31st, and dividing the total by the number of such dates occurring within the year.
Giving Back to the Community
The participation by the eligible types of businesses in the program would generate positive community and economic benefits, including but not limited to:
Increased employment opportunities
Increased opportunities for internships, vocational training and experiential learning for undergraduates and graduates
Diversification of the local economy
Increased entrepreneurship opportunities
Positive, non‐competitive and/or synergistic links to existing businesses
Effect on the local economy
Opportunities as a magnet for economic and social growth
Sullivan County Community College Start-Up NY Industries:
Advanced Materials and Manufacturing
Biotech and Life Sciences
Cleantech and Renewable Energy
Tech and Electronics