Incentive Program, START-UP NY, Formally Begins January 1
04 Dec, 2013
New York’s officials recently launched START-UP NY, a wide-sweeping economic development incentive program which establishes tax free business zones in the communities surrounding State of University of New York (SUNY) campuses across the state. More than 64 SUNY campuses are participating in the program as will many of New York’s private colleges.
START-UP NY is a groundbreaking initiative from Gov. Andrew M. Cuomo that will provide major incentives for businesses to relocate, start up or significantly expand in New York State through affiliations with public and private universities, colleges and community colleges. Businesses will have the opportunity to operate state and local tax-free on or near academic campuses, and their employees will pay no state or local personal income taxes. In addition, businesses may qualify for additional incentives.
The program will formally begin on January 1, 2014, when tax exemptions are officially available for participating companies and their employees. Businesses will be able to apply directly to schools once the tax-free areas have been approved. The first business applications are now being accepted.
What tax benefits will participating companies receive?
START-UP NY will provide new and expanding businesses that create net new jobs the opportunity to operate completely tax-free — including no income tax for employees and no sales, property or business tax — while partnering with higher education institutions. Business and employee tax benefits will be available for up to 10 years. After five years, for extremely high-earners, there is a limit on the amount of employee earnings exempted from the personal income tax.
What is the Personal Income Tax exemption for employees?
Employees of businesses in START-UP NY will pay no income taxes on their wages for the first five years. For the second five years, employees will pay no taxes on income up to $200,000 of wages for individuals, $250,000 for a head of household, and $300,000 for taxpayers filing a joint return.
Illustration by Stuart Miles at Free Digital Photos.net
Source: START-UP NY.com