Economic Incentives and Resources
Empire State Development, New York State's business and economic development agency, offers a variety of tax incentives, business incentives and tax credits in New York State, all designed to benefit small or expanding businesses as well as film and TV production companies.
Click here to see the entire list of tax incentive programs from ESD
The Department of Environmental Conservation (DEC) administers the Brownfield Cleanup Program (BCP) and determines who is eligible to participate in the program. New York State offers three refundable tax credits under the BCP. The tax credits offered are the:
Remediated brownfield credit for real property taxes, available to sites accepted into the BCP prior to July 1, 2015
Environmental remediation insurance credit, available to sites accepted into the BCP prior to July 1, 2015
Brownfield redevelopment tax credit, available to sites accepted into the BCP for the following time periods:
prior to June 23, 2008
on or after June 23, 2008, but prior to July 1, 2015
on or after July 1, 2015
The CAT program, created in 1983, facilitates a continuing program of basic and applied research, development and technology transfer in multiple technological areas, in collaboration with and through the support of private industry. CATs play a critical role in spurring technology-based applied research and economic development in the state; promoting national and international research collaboration and innovation; and leveraging New York's research expertise and funding with investments from the federal government, foundations, businesses, venture capital firms and other entities.
NYSTAR funds 13 Centers of Excellence to foster collaboration between the academic research community and the business sector to develop and commercialize new products and technologies, to promote critical private sector investment in emerging high-technology fields in New York State, and to create and expand technology-related businesses and employment.
The Empire State Jobs Retention Program was created to provide financial incentives to retain strategic businesses and jobs that are at risk of leaving the state due to the impact on business operations from a natural disaster. Firms admitted to the Empire State Jobs Retention Program may qualify for a jobs tax credit of 6.85 percent of wages per impacted job that is retained in NYS. Impacted jobs mean those jobs of the firm existing at a location(s) within a county declared an emergency by the governor on the day before the event occurred that led to the emergency declaration
The Empire State Economic Development Fund is flexible, providing a range of assistance to ensure that the state is meeting the diversity of business needs.
EDF funds assist with:
Construction, expansion and rehabilitation of facilities
Acquisition of machinery and equipment
Training full-time, permanent employees
Funds can be used for:
Real estate and land acquisition
Construction and renovations
Site and infrastructure
Machinery and equipment
Construction-related planning and design
Feasibility planning studies
Firms in the Excelsior Jobs Program may qualify for four fully refundable tax credits. Businesses claim the credits over a benefit period of up to 10 years as established in the preliminary schedule of benefits. To earn credits, firms must first meet and maintain established job and investment thresholds outlined in Program Eligibility below:
Excelsior Jobs Tax Credit:
A credit of up to 6.85% of wages per net new job.
For a qualified green project a credit of up to 7.5% of wages per net new job.
Excelsior Investment Tax Credit:
A credit valued at 2% of qualified investments.
For a qualified green project a credit valued at 5% of qualified investments.
Excelsior Research and Development Tax Credit:
A credit of 50% of the portion of the Federal Research and Development tax credit that relates to expenditures in NYS up to credit up to 6% of research expenditures attributable to activities conducted in NYS.
For a qualified green project a credit of 50% of the portion of the Federal Research and Development tax credit that relates to expenditures in NYS up to 8% of research expenditures attributable to activities conducted in NYS.
Excelsior Real Property Tax Credit:
Available to firms locating in certain distressed areas and to firms in targeted industries that meet higher employment and investment thresholds (Regionally Significant Project).
The purposes of Industrial Development Agencies (IDAs) are to promote, develop, encourage and assist in the acquiring, constructing, reconstructing, improving, maintaining, equipping and furnishing industrial, manufacturing, (civic facilities), warehousing, commercial, research and recreation facilities including industrial pollution control facilities, educational or cultural facilities, railroad facilities, horse racing facilities and continuing care retirement communities, and thereby advance the job opportunities, health, general prosperity and economic welfare of the people of the state of New York and to improve their recreation opportunities, prosperity and standard of living.
The ITC is available to manufacturers. The Investment Tax Credit (ITC) is 5% of the first $350 million of new or expanded manufacturing production facilities and 4% of investments over $350 million. The employment incentive credit (EIC) is based on increases from base year employment and equals 1.5%, 2.0%, and 2.5% of the ITC amount if current year employment is 101%, 102%, or 103% of base year employment, respectively.
The New York Manufacturing Extension Partnership (NY MEP) is a network of organizations that provide growth and innovation services to small and mid-sized manufacturers in every corner of the state to help them create and retain jobs, increase profits, and save time and money.
In 2011, Governor Andrew M. Cuomo created ten Regional Economic Development Councils (REDC) and the Consolidated Funding Application (CFA) to advance the administrations efforts to improve New Yorks business climate and expand economic growth. Each year the REDC releases a list of grants available.
Start-Up NY Program
Start-Up New York is a new program that creates tax-free zones for businesses on college campuses. Tax-free space can be located on:
Vacant space in campus buildings
Vacant land owned by the college
200,000 square feet of vacant land or building space within 1 mile of the campus
Business incubator with affiliation with a SUNY campus.
The U.S. Economic Development Administration's investment policy is designed to establish a foundation for sustainable job growth and the building of durable regional economies throughout the United States. This foundation builds upon two key economic drivers - innovation and regional collaboration. The EDA offers a number of funding opportunities for businesses in New York State.
NIH is the largest public funder of biomedical research in the world, investing more than $32 billion a year to enhance life, and reduce illness and disability. NIH funded research has led to breakthroughs and new treatments, helping people live longer, healthier lives, and building the research foundation that drives discovery. Through its grant program, NIH offers funding for New York businesses.
Created in 1953, the U.S. Small Business Administration (SBA) continues to help small business owners and entrepreneurs pursue the American dream. The SBA is the only cabinet-level federal agency fully dedicated to small business and provides counseling, capital, and contracting expertise as the nations only go-to resource and voice for small businesses. The SBA offers a number of funding programs for businesses in NYS.
The mission of the Energy Department is to ensure America's security and prosperity by addressing its energy, environmental, and nuclear challenges through transformative science and technology solutions. DOE offers a number of grants for businesses addressing these challenges.
The mission of the U.S. Department of Labor is to foster, promote, and develop the welfare of the wage earners, job seekers, and retirees of the United States; improve working conditions; advance opportunities for profitable employment; and assure work-related benefits and rights. DOL offers a variety of grants for workforce development.
HUD offers a variety of grants to support the growth and sustainability of America's cities.
The mission of the Department of Transportation is to serve the United States by ensuring a fast, safe, efficient, accessible and convenient transportation system that meets our vital national interests and enhances the quality of life of the American people, today and into the future. DOT offers grants to New York businesses to enhance its transportation system.