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What is a new york state tax credit

what is a new york state tax credit

Taxes & Incentives

New York State now has one of the lowest corporate income tax rates in the Northeast. In addition to lower corporate taxes, New York offers a variety of incentives to companies expanding or relocating in the Empire State. These include:

Cash Incentives. New York State offers low-cost loans and grants to companies that invest significant capital in the State and commit to the creation and retention of private sector jobs. Terms can be customized to each project; other criteria apply.

Emerging Technologies. New York State has enacted tax incentives for: investors in Qualified Emerging Technology Companies (QETCs) ; job creation by QETCs; and R&D investment, R&D expenses and qualified high technology training costs incurred by QETCs.

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.

Lower Corporate Tax. 6.5% rate for Qualified New York State Manufacturers.

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.

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.

Research and Development (R&D) Tax Credit. Investments in R&D 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 (IDAs). Visit your local regional office page for a list of IDA contacts in your area.

Single Sales Factor Apportionment. Formula for Taxable Income.

Contact Information

Contact your ESD Regional Office or call the Main Program Administrator at (518) 292-5300.

Additional Resources

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