New York State Tax Incentives Encourage Businesses PDF Print E-mail
2009-06-14 13:01:32
New York’s tax incentives, which take the form of credits, deductions, or allocation formula changes, can help reduce a company’s overall effective tax burden to as low as the statutory minimum tax. New York offers an array of incentives to encourage business investment and economic development within the Empire State. New York’s tax incentives, which take the form of credits, deductions, or allocation formula changes, can help reduce a company’s overall effective tax burden to as low as the statutory minimum tax. All incentives are explored on a case by case basis. New York State offers the following tax incentives:

- 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). A list of IDAs can be found at: http://www.empire.state.ny.us/pdf/idalist.pdf.
- Real Property Tax Abatement. To encourage development, expansion, and improvement of commercial property, 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.

NYS offers one of the most generous investment tax credit programs in the nation. Benefits include:
- A 5% credit against the corporate franchise tax on new capital invested in buildings and/or depreciable tangible personal property used primarily in production by manufacturing, processing, assembling and certain other types of activities.
- A 4% credit to personal income taxpayers and corporation investing more than $350 million
- A 9% credit against the corporate franchise tax (7% against the personal income tax) for investment in qualified research and development property.
- New businesses (generally those operating in New York State for less than five years) may take a refund of unused credits.
- Pollution Control Credit for State Taxes on Business Income.
- Employment Incentive Tax Credit.
- Qualified Emerging Technology Employment Credit (QETC).
- QETC Capital Tax Credit.
- Sales Tax Exemptions on Telecommunications
- Computer System Hardware Exemption.
- Internet Access Credit.
- Credit for Hiring Persons with Disabilities.
- Alternative Fuels Vehicle Credit.
- Insurance Tax Credit for Certified Capital Companies.
- Targeted Tax Credit.
New York State has enacted several targeted tax incentives supporting the high-tech industry:
•    Sales tax exemptions for computer system hardware used in testing and developing software.
•    Exemption from sales tax on sale of internet service and start-up charges.
•    Expansion of the Qualified Emerging Technology Tax Credit Sales Tax Exemption for Web Site Design Hardware and Software.

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Last Updated ( 2009-10-13 18:50:04 )
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