New York State

New York offers a variety of tax incentives to encourage business investment and economic development within the Empire State – credits, deductions, or allocation formula changes – to help reduce a company's overall effective tax burden to as low as the statutory minimum tax.

Major tax incentives include:

• A 5% credit against the corporate franchise tax on new capital invested in buildings and/or depreciable tangible personal property used primarily in production by manufacturing, processing, assembling and certain other types of activities.
• A 4% credit to personal income taxpayers and corporations investing more than $350 million
• A 9% credit against the corporate franchise tax (7% against the personal income tax) for investment in qualified research and development property.
• Employment Incentive Tax Credit – Up to 2.5% of the same capital investment is available in each of the two years following the investment if employment in those years reaches specified levels.
• Real Property Tax Business Improvement Exemption/Benefits – Commercial and industrial facilities that are constructed or reconstructed outside of New York City at a cost of more than $10,000 are eligible for up to 50% exemption from the real property tax levied by counties, cities, towns, villages and/or school districts. Exemptions decline by 50% in each of the succeeding 9 years.

Learn more at NY Loves Business.

Tax Guide for New York State for New Businesses (PDF)
A Guide to Sales Tax in New York State (PDF)

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