NYS Tax Department issues guidance on START-UP NY Program Tax Benefits

The START-UP NY program* provides tax benefits to approved businesses that locate in vacant space or land of approved New York State public and private colleges and universities, approved strategic state assets, and New York State incubators affiliated with private universities or colleges that are designated as tax-free NY areas. This program will promote entrepreneurialism and job creation by creating tax-free communities across the state.

START-UP NY is administered by New York State's Empire State Development (ESD).

START-UP NY business tax benefits:

• Metropolitan commuter transportation mobility tax (MCTMT) - exemptions 
  • employers
  • self-employed individuals (including partners)
• Organization tax and license and maintenance fees - exemption 
• Real estate transfer tax – exemption for leases
• Sales tax – credit or refund
• Tax Elimination Credit – corporation and income tax 
• Telecommunication Services Excise Tax Credit 

START-UP NY personal income tax benefit:

• Wage exclusion tax benefit - information for eligible employees on: 
  • Who qualifies for the exclusion
  • How to claim the exclusion
  • Income tax withholding

START-UP NY employer information on: 

• Allocated net new jobs
• Wage exclusion benefit for eligible employees
• Employer responsibilities and reporting requirements
• Withholding requirements
• Federal Form W-2, Wage and Tax Statement

For more information see:

• TSB-M-13(7)C, (6)I, (11)M, (1)MCTMT, (7)S, SUNY Tax-Free Areas to Revitalize and Transform Upstate New York Program (START-UP NY Program)
• START-UP New York Tax FAQs

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*SUNY Tax-free Areas to Revitalize and Transform Upstate New York