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Taxes & 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:
- 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, 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.
For more information on New York State's tax credits, exemptions and abatements,
contact Empire State Development at 1 (800)
STATE-NY or 1 (800) 782-8369. You may
also contact George LaPointe at (518)
292-5300 or email: glapointe@empire.state.ny.us.
Other Relevant Links
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