Tech + Creative
START-UP NY Offers Major Incentives for New Biz
DUMBO loves startups. Now a new economic development incentive from Governor Andrew M. Cuomo makes it even more enticing to launch a business in the Big Apple (or, for that matter, the Brooklyn Tech Triangle.)
START-UP NY is a new initiative from Governor Cuomo to create statewide tax-free zones and provide major incentives for businesses to relocate, start up or expand in New York State. Businesses will have the opportunity to operate state and local tax-free for ten years on or near academic campuses, and their employees will pay no state or local personal income taxes.
Employees pay no income taxes on their wages for the first five years; employees will pay no taxes on income up to $200,000 of wages for individuals, $250,000 for a head of household, and $300,000 for taxpayers filing a join return. In addition, businesses may qualify for additional incentives.
What businesses are eligible for START-UP NY?
Many different types of businesses are eligible to apply to the program. In order to participate, businesses need to support the academic mission of the college or university that they hope to work with.
Every business must create net new jobs in order to participate by:
- Being a new start-up company;
- Being a company from out-of-state that is relocating to New York State; or
- Expanding as an existing New York State company- for example, a company creating a new line of business or opening a new advanced manufacturing facility – and not simply moving existing jobs from one location to another location.
In New York City, Long Island and Westchester County, businesses must be start-ups or high-tech companies. Certain types of businesses are excluded from the program, including retail and wholesale businesses; restaurants and hospitality; professional practices like law firms and medical practices; and energy production and distribution companies.
How many jobs must a business create to be eligible for START-UP NY?
There is no minimum requirement for the number of net new jobs that must be created, but all participating businesses must create jobs to receive the program’s benefits.
What tax benefits will participating companies receive?
START-UP NY will provide new and expanding businesses that create net new jobs the opportunity to operate completely tax-free- including no income tax for employees and no sales, property or business tax- while partnering with higher education institutions. Business and employee tax benefits will be available for up to ten years. After five years, for extremely high-earners, there is a limit on the amount of employee earnings exempted from the Personal Income Tax.
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Click here for more information regarding the initiative.