Incentives
are designed to support economic and neighborhood development
while offering services and savings to small businesses.
These City, State and Federal resources include tax benefits,
energy and wage benefits and technical assistance.
NEW YORK CITY PROGRAMS
RELOCATION EMPLOYMENT ASSISTANCE
PROGRAM (REAP)
REAP encourages businesses to relocate from
Manhattan south of 96th Street, or from outside the city,
to eligible premises in Manhattan north of 96th Street and
all other boroughs. Qualified businesses (excluding retail
activities and hotels) are entitled to a credit against a
city business income tax liability of up to $3,000 per eligible
employee per year for up to 12 years. Businesses must relocate
either to a building improved by at least 50% of its assessed
value or sign a lease of at least three years and spend a
minimum of $25 per square foot on improvements. The city
business income taxes against which the credit can be taken
include the general corporation tax, unincorporated business
tax, banking corporation tax or the utility tax. Credits
are refundable for the year of relocation and the succeeding
four years. Unused credits from subsequent years may be carried
forward for five years.
For more information, including eligibility requirements,
please visit:
http://www.nyc.gov - search for REAP
INDUSTRIAL AND COMMERCIAL ABATEMENT PROGRAM (ICAP)
The
Industrial and Commercial Incentive Program (ICAP) provides
a partial exemption from or abatement of property taxes for
varying periods of up to 25 years for eligible industrial
or commercial buildings that are constructed, expanded, modernized,
rehabilitated or otherwise physically improved. ICAP benefits
are granted as-of-right to all applicants whose projects
qualify under the provisions of the legislation. All applicants
must file preliminary applications with the Department of
Finance prior to the issuance of a building permit or, if
no permit is required, prior to the start of construction.
All applicants must meet the minimum required expenditure
target, which is a percentage of the assessed value of the
property determined in the year the building permit is issued
or, if no permit is required, at the start of construction.
For more information, including eligibility requirements,
please visit:
http://www.nycedc.com - see Financing Incentives
NEW YORK CITY CAPITAL RESOURCE CORPORATION (CRC)
The New
York City Capital Resource Corporation (CRC) encourages community
and economic development and job creation and retention throughout
New York City by providing lower-cost financing programs
to qualified not-for-profit institutions and manufacturing,
industrial, and other businesses for their eligible capital
projects. Currently, through its Loan Enhanced Assistance
Program (LEAP), CRC can make direct loans to not-for-profits
that are expanding or improving services in New York City.
Eligible projects may include acquisition, construction,
renovation and equipping of facilities primarily for the
nonprofit's own use located within New York City, and/or,
under certain circumstances, reimbursement or refinancing
of existing debt used to fund a capital expense.
For more information, including eligibility requirements,
please visit:
http://www.nycedc.com
- see Financing Incentives from CRC
or email
leap@nycedc.com
ENERGY COST SAVINGS PROGRAM (ECSP)
The energy cost savings
program reduces electricity and natural gas bills. Qualifying
businesses must either (1) relocate to the Site from outside
of New York City or from Manhattan below 96th Street or (2)
make an investment that is greater than 10 percent of the
Site's Assessed Value.
Retailers, hotels, personal-service providers, and
public-benefit corporations are not eligible.
For more information regarding these requirements, contact:
Energy Cost Savings Program
New York City Department of
Small Business Services
110 William Street
New York, N.Y.
10038
(212) 513-6415
www.nyc.gov/html/sbs
In addition for ECSP, other energy discount programs may
be available. Ccontact:
New York City
Economic Development Corporation - Energy Department
110
William Street New York, N.Y. 10038
(212) 312-3600 / (888) NYC-0100
NEW MARKETS TAX CREDIT PROGAM (NMTC Program)
The New Markets
Tax Credit (NMTC) Program permits taxpayers to receive a
credit against Federal income taxes for making qualified
equity investments in designated Community Development Entitites
(CDEs). Substantially all of the qualified equity investment
must in turn be used by the CDE to provide investments in
low-income communities. The credit provided to the investor
totals 39% of the cost of the investment and is claimed over
a seven-year credit allowance period.
The NMTC Program is administered by the federal Community
Development Financial Institutions (DCFI) Fund. For more
information regarding the program's eligibility requirements
and restrictions, as well as a complete listing of CDEs
with an allocation of the tax credits that may be used
in the financing of projects and businesses located in
low-income areas of New York City, please visit:
http://www.cdfifund.gov/
NEW YORK CITY INDUSTRIAL DEVELOPMENT AGENCY (IDA)
NYCIDA
programs provide companies with access to triple tax-exempt
bond financing or tax benefits to acquire or create capital
assets, such as purchasing real estate, constructing or renovating
facilities, and acquiring new equipment. NYCIDA can also
offer expertise in a variety of bond programs, incentive
programs and negotiated incentives. Below you will find a
brief summary of NYCIDA programs with links to more detailed
descriptions of individual programs.
SMALL BUSINESS INCENTIVE PROGRAMS
Businesses located in
New York City are eligible for a wide variety of incentive
programs offered through City, State, and Federal agencies.
Incentives include tax benefits, energy and wage benefits,
and technical assistance. Incentives are designed to support
economic and neighborhood development in NYC while offering
valuable services and savings to small businesses. Generally,
incentive programs are triggered by one of four main activities:
relocating (to or within NYC); investing in equipment;
and purchasing and improving property; hiring and training
employees. Summarized bellow is an overview of the commonly
accessed incentives programs.
Recruitment and Training
Funds
NYC Business Solutions Recruitment and Training Funds
provide resources and funding to ensure that businesses
can fin and train the workers they need to succeed. NYC
Business Solutions Recruitment helps employers identify,
recruit, pre-screen, and hire employees, all at no cost
to the business. NYC Business Solutions Training Funds
provide up to 70% of training costs for NYC based employees
(max of $400,000) in nine priority sectors to address skill
shortages in entry level positions.
nyc.gov/html/sbs/nycbiz/html/summary/training.shtml
Commercial Expansion Program
Qualified commercial or industrial
tenants located in targeted Commercial Expansion Areas
(zoned M1, M2, M3, C4, C5, C6) can receive a 3 to 5 year
rent credit of up to $2.50 per square foot. Benefits are
based on the length of the lease and the size of the company.
Investments into the business space are required. Retail
firms and hotels are ineligible. Qualified manufacturing
firms can receive a maximum of a 10 year benefit with no
phase out. Landlords are required to pass the full savings
to tenants.
Call 311 to get started
BOND PROGRAMS
Manufacturing Facilities Bond Program
Manufacturers
of tangible personal property acquiring, developing, renovating
or equipping facilities for their own use can access triple
tax-exempt bond financing and real estate, mortgage and
sales tax reductions.
Not-For-Profit Bond Program
501(c)(3)
not-for-profit organizations purchasing, developing, renovating
or equipping facilities for their own use can access triple
tax-exempt financing and mortgage recording tax reductions.
Pooled bond structures to reduce costs are also available.
Exempt Facilities Bond Program
Companies developing facilities
on publicly-owned docks and wharves or developing solid
waste recycling facilities can access triple tax-exempt
bond financing. Reductions in mortgage recording and sales
taxes may also be available.
Empowerment Zone Facilities
Bond Program
Developers of commercial, industrial or retail
facilities, as well as other types of facilities within
the areas of Upper Manhattan and the South Bronx designated
as the Empowerment Zone, can access triple tax-exempt bond
financing. Reductions in mortgage recording and sales taxes
may also be available. Borrowers must, among other requirements,
commit to employ Empowerment Zone residents to be eligible
for the program.
New York Liberty Bond Program
Provides
triple tax-exempt financing for construction of and major
capital improvements to commercial and retail facilities
within Lower Manhattan and New York City. This is a cooperative
program of the City and the State of New York. In allocating
New York Liberty Bonds, the State and the City are seeking
projects that will contribute significantly to the City's
revitalization and long-term economic health in the aftermath
of the events of September 11, 2001. Financing is provided
by the program's issuers, the New York City Industrial
Development Agency and the New York Liberty Development
Corporation (administered by the New York State Empire
State Development Corporation).
INCENTIVE PROGRAMS
Industrial Incentive Programs
The Small
Industry Incentive Program (SIIP) and Industrial Incentive
Program (IIP) provide eligible industrial companies with
real estate tax reductions, mortgage recording tax waivers
and sales tax exemptions on purchases of materials used
to construct, renovate or equip facilities. Eligible companies
include manufacturers, distributors, warehouses and other
industrial companies seeking to acquire, construct or renovate
facilities for their own use.
- Companies that might qualify
for SIIP must have revenues of less than $5 million or
fewer than 100 employees.
- Companies that might qualify
for IIP must have revenues exceeding $5 million and more
than 100 employees.
- Developers of industrial space in designated
areas can seek mortgage recording tax waivers and sales
tax exemptions on purchases of materials used to construct,
renovate or equip facilities.
http://www.nycedc.com
- search for Financial -> Industrial Incentives
COMMERCIAL TAX INCENTIVES
Commercial Tax Incentives Certain
tax incentives may be available to induce commercial companies
to undertake major capital investments that result in the
creation and retention of significant levels of jobs within
New York City. NYCIDA benefits are discretionary. All applicants
must satisfy eligibility requirements and demonstrate need
for assistance.
For more information, including eligibility
requirements, please visit:
New York City Economic Development
Corporation (NYCEDC)
c/o NYCIDA
110 William Street New
York, NY 10038
(212) 312-3600
nycida@nycedc.com
NEW YORK STATE PROGRAMS
NEW YORK STATE ENERGY RESEARCH and DEVELOPMENT AUTHORITY
(NYSERDA)
NYSERDA programs provide industrial and commercial
businesses with energy efficiency services for existing buildings,
new construction, industrial facilities, and vehicle fleets.
NYS FILM PRODUCTION TAX CREDITS
Qualified film and television
productions can receive a 30% State tax credit along with
a 5% City tax credit on eligible production costs. Tax credits
are available for feature length films, television pilots
and television series.
EXCELSIOR JOB PROGRAM
The Excelsior Job Program provides
up to four new, fully refundable tax credits to firms in
targeted industries (biotechnology, pharmaceutical, high-tech,
clean-technology, green technology, financial services, agriculture
and manufacturing). The program is limited to firms that
actively work to create and maintain new jobs or that make
significant capital investments in New York State.
http://www.empire.state.ny.us/BusinessPrograms/Excelsior.html
FEDERAL EMPOWERMENT ZONE PROGRAM
The Federal Empowerment
Zone (FEZ) program in New York focuses on the creation of
self-sustaining, long-term economic development in designated
distressed urban areas. The initiative is based on a holistic,
participatory approach that requires community stakeholders
to work together to develop and implement comprehensive strategic
plans for revitalization.
In New York, the State and City of New York each committed
to match the federal $100 million grant award, providing
a total $300 million in grants for the New York City Empowerment
Zone (NYCEZ).
Two local development corporations were designated
to administer the FEZ: the Bronx Overall Economic Development
Corporation (BOEDC) in the South Bronx; and the Upper Manhattan
Empowerment Zone Development Corporation (UMEZ) in Upper
Manhattan. The NYCEZ designation is effective for 15 years,
from January 1, 1995 to December 31, 2009.
The NYCEZ has been re-focused as a job-generating, business-based
economic development program in full partnership with the
distressed communities it serves, thus leveraging private
sector investment. The FEZ funds may be used for loans, loan
guarantees, grants, and equity investments. The New York
Empowerment Zone Corporation (NYEZC), a subsidiary of the
Empire State Development Corporation, provides oversight
and final funding approval for all projects.
For more information, including eligibility requirements,
please visit:
Upper Manhattan - The Upper Manhattan Empowerment
Zone Development Corporation
(212) 410-0030
http://www.umez.org
South Bronx - The Bronx Overall Economic
Development Corporation
(718) 590-3948
http://www.boedc.com
TAXES AND INCENTIVES
New York State has become the nation's
leader in cutting taxes. Nearly all taxes in New York State
have been cut, with substantial reductions achieved in business,
estate, sales, property and personal income taxes. New York
State now has one of the lowest corporate income tax rates
in the Northeast.
In addition to lower taxes, New York offers a variety of
incentives to companies expanding or relocating in the Empire
State. These include:
To search for all Tax Incentives, click here:
http://www.empire.state.ny.us
Investment Tax Credit (ITC)
Businesses that create new
jobs and make new investments in production property and
equipment may qualify for tax credits of up to 10% of their
eligible investment. New businesses may elect to receive
a refund of certain credits, and all unused credits can
be carried forward for 15 years.
Research and Development Tax Credit
Investments in research
and development facilities are eligible for a 9% corporate
tax credit. Additional credits are available to encourage
the creation and expansion of emerging technology businesses,
including a three-year job creation credit of $1,000 per
employee and a capital credit for investments in emerging
technologies.
Sales Tax Exemptions
New York State offers exemptions
for purchases of production machinery and equipment, research
and development property, and fuels/utilities used in manufacturing
and R&D. Other exemptions may be available through local
Industrial Development Agencies (IDA.)
Real Property
Tax Abatement
To encourage development, expansion, and
improvement of commercial property, a 10-year property
tax abatement is available to offset increased assessments
due to improvements to business and commercial property.
No Personal Property Tax
Unlike many other states, which
tax both real property and personal property, property
taxes in New York State are imposed on real property only.
Personal property, whether tangible or intangible, is exempt
from state and local taxes.
Economic Development Zone/Empire Zone Tax Credits
New
York State has designated 72 zones as Economic Development
Zones/Empire Zones (EZs), which offer a host of benefits.
These include discounts on electricity, enhanced tax credits
for investment and job creation, and additional sales and
property tax exemptions.
To search for all Tax Incentives, click here:
http://www.empire.state.ny.us
CONTACT US
For more information on New York State's tax
credits, exemptions and abatements, contact Empire State
Development at 1 (800) STATE-NY [1-800-782-8369].
You may also contact George LaPointe at
(518) 292-5300
or email:
glapointe@empire.state.ny.us
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