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. Businessses 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/html/dof/html/property/property_tax_reduc_reap.shtml
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.nyc.gov/html/dof/html/property/property_tax_reduc_incentive.shtml
http://www.nycedc.com/
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/Business_Incentives/Financing/leap.html 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. For more information, contact:
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.edfifund.gov.
NEW YORK CITY INDUSTRIAL DEVELOPMNT 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.
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, warehousers
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.
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
email NYCIDA@nycedc.com
NEW YORK STATE PROGRAMS
EMPIRE ZONE PROGRAM
New York State’s Empire Zone program was created to
stimulate economic growth through a variety of State tax
incentives designed to attract new businesses to New York
State and to enable existing businesses to expand and create
jobs. To participate in the Empire Zones Program, a business
must first be located in an empire zone, or qualify as a
regionally significant project, and become zone certified.
To qualify for certification, a business must be able to
demonstrate that it will create new jobs and/or make investments
in the empire zone and be consistent with the local zone’s
development plan, including a cost-benefit analysis. Applications
approved by local zone officials are then forwarded to the
State for review and approval by the Departments of Economic
Development (Empire State Development) and Labor. Once a
business is certified it is eligible to claim tax credits,
subject to requirements and performance based formulas set
in Tax Law. A map of the 85 zone locations may be found by
reviewing the Empire Zones “NYS Zone Map” section
of Empire State Development’s website.
For more information, including eligibility requirements,
please visit:
http://www.empire.state.ny.us/Tax_and_Financial_Incentives/Empire_Zones/default.asp
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:
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
|
