Thursday, July 07, 2016

The Business Incentive Programs (New York State)

From Empire State Development
The state has created several tax-free programs including START-UP NY and the Innovation Hot Spot Program. These programs assist businesses that are forming, expanding or locating to New York State for the first time. As part of both programs, businesses interact closely with universities and have the opportunity to operate taxfree for a specified amount of time in order to facilitate growth while promoting entrepreneurialism and job creation in communities across the state.

New York State Certified Business Incubator and Innovation Hot Spot Program

Administered by ESD’s Division of Science, Technology & Innovation (NYSTAR), the New York State Certified Business Incubator and Innovation Hot Spot Program was enacted as part of the 2013-14 State Budget and provides financial support for business incubators in the state in order to support entrepreneurial activity. Through a competitive process, ESD has designated 10 Innovation Hot Spots (one
for each of New York State’s 10 economic development regions) and 20 Certified Business Incubators and provides funding to expand services and assist a greater number of early stage companies. These designees are operated by universities, colleges or not-for-profit organizations and coordinate regional incubation activities while focusing their services on a particular industry of strategic interest to that region.

The program is helping to stimulate the creation and growth of early stage companies by improving the availability of necessary support and services in all regions. These include: physical space; shared administrative staff; access tocapital; coaching; mentoring; networking connections; prototype development; and access to other technical services. In addition, client businesses of the Innovation
Hot Spots have access to tax benefits to assist them through their early growth stage. In its second year and with 20 of the current 30 designees in operation and reporting, the program created and retained 1,387 jobs.

START-UP NY

The START-UP NY incentive program partners New York State’s large network of public and private colleges and universities to new, growing and relocating businesses by providing no state and local personal
income taxes for 10 years. By linking new and growing businesses with colleges and universities, START-UP NY provides a unique opportunity for these businesses to take advantage of various resources available at academic institutions – including clean labs, advanced machinery and equipment, 3-D printers, and audio and video equipment – and benefit from connections to faculty and students.

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