Start-up NY

If you are watching NY1 news you will notice that NYS has taken out a huge add campaign on their Start-UP NY program.  This program promises to suspend taxes for accepted businesses and their employees for 10 years.  We believe that most businesses will not be accepted into the plan; however this could be a great opportunity for individuals that may be hired by an approved business.

START-UP NY is a new initiative from Governor Andrew M. Cuomo to create and maintain new jobs in New York State.  It provides tax incentives to start-up, relocate or expand certain types of businesses in NYS. Through affiliation with public and private non-for-profit educational institutions and support of their academic mission, certified companies will have the opportunity to operate state and local tax-free on or near academic campuses, and their employees will pay no state or local personal income taxes for 10 years.

* In New York City, Long Island and Westchester County, only new companies and high technology businesses qualify.

What businesses are eligible for Start-Up NY?

  • A new company in New York State;
  • A company from out-of-state that is relocating to New York State; or
  • 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.

 What businesses are not eligible for Start-Up NY?

There is a number of non-qualifying businesses in New York State:

  • retail and wholesale businesses;
  • restaurants;
  • real estate brokers;
  • law firms;
  • medical or dental practices;
  • real estate management companies;
  • hospitality;
  • finance and financial services;
  • businesses providing personal services;
  • businesses providing business administrative or support services (unless the business is creating at least 100 new jobs and has received permission to participate);
  • accounting firms;
  • businesses providing utilities; or
  • energy production and distribution companies.

If your business does not qualify, it is likely that you will find other credits and incentives on http://www.esd.ny.gov/BusinessPrograms.html

What does ‘supporting a school’s academic mission’ mean?

The focus of the school’s academic mission will be on the programs, research, applied learning opportunities (like internships), culture and curriculum of the college or university. Business application process will help to determine how your business would support the academic mission of a school. Participating campuses will each have a START-UP NY point person who will be able to help you and answer questions about your business and how it may support their academic mission. The contact information can be found here http://startup-ny.com/eligibility/campus-contacts/ .

Tax benefits:

Businesses approved for the program are exempt from income tax; business, corporate state or local taxes; sales tax; property tax; and franchise fees. Detailed information on tax benefits and limitations can be found here http://startup-ny.com/faq/ .

To enroll:

1. You will need to apply directly to the participating school. The application can be found here http://startup-ny.com/wp-content/uploads/2013/10/Start-Up-NY-Fillable-Business-Application.pdf . Detailed instructions can be found here http://startup-ny.com/wp-content/uploads/2013/11/START-UP-NY-Instructions-for-Business-Application.pdf .

2. After the school approves your application, Empire State Development (ESD), the state’s top economic development agency, will review your application within sixty days. If they don’t overrule school’s decision during that time, you will be immediately enrolled into tax-free program.

3. The last day to apply is December 31, 2020. A decade of tax-free zone will begin from the day of enrollment.