New York State has one of the lowest corporate income tax rates in the Northeast. In addition, New York and the Buffalo Niagara region offer a variety of incentives to companies expanding or relocating in the Empire State.
Excelsior Jobs Program
The Excelsior Jobs Program provides job creation and investment incentives to firms in targeted industries such as biotechnology, pharmaceutical, high-tech, clean-technology, green technology, financial services, agriculture, softward development and manufacturing. Firms in these industries that create and maintain new jobs or make significant financial investment are eligible to apply for up to four fully refundable tax credits. Businesses claim the credits over a 10 year period.
New York State’s groundbreaking initiative, is transforming communities across the state into tax-free sites for new and expanding businesses through affiliations with public and private universities, colleges and community colleges. Businesses can operate 100% NYS tax-free for 10 years. No income tax, business, corporate, state or local taxes, sales and property taxes, or franchise fees on or near academic campuses.
IDA Abatement Programs
A common benefit pursued for most expansion or retention projects are tax abatements. In Buffalo Niagara, abatements typically take three forms: Property Tax Abatements (on new building construction and expansions), Sales Tax Abatements (on non-production equipment and construction materials), and/or Mortgage Recording Tax Abatements (a 1% tax). These programs can reduce expansion costs for eligible target companies.
Investment Tax Credit
Businesses new to New York State that make new investments in production property and equipment may qualify for tax credits of up to 5% of their eligible investment. New businesses may elect to receive a refund for many of these credits, and all unused credits can be carried forward for 15 years.
The 2017 Tax Cuts and Jobs Act created the Opportunity Zone Program – a new economic development initiative designed to spur investment activity and job creation in economically distressed communities. Qualified investments made in designated Opportunity Zones are eligible for preferential tax treatment. For a look at Buffalo Niagara sites and buildings within Opportunity Zones, visit our Site Search page and toggle ‘Opportunity Zone’ in criteria.