Wednesday, March 5, 2014

What is Start-Up NY? Who is eligible? What are the benefits?

Ten months after Gov. Andrew M. Cuomo announced Start-Up NY, which offers 10 years of broad-based tax savings for companies that locate on or near college campuses, school and state officials say the program is generating considerable interest from the business community.

The governor touts Start-Up NY as an economic-development stimulus program that puts New York – upstate in particular – on an even footing with other states that have more business-friendly reputations.

Colleges here and across the state are awaiting formal approval of their tax-free zone boundaries, with an announcement from the state expected soon. But they’re already marketing Start-Up NY to potential partners...

Start-Up NY is meant to encourage start-up companies – or new divisions spun off from existing companies – to hire new employees and set up shop in a zone connected to a college.

The program’s rules ensure the jobs aren't shifted from somewhere else, the benefits go to new hires and the companies receiving the tax breaks have a connection to the schools.

But economic-development experts say it’s hard to say whether any of the tax-incentive programs introduced by the state have had a significant economic impact in New York, while critics say the program rewards new companies at the expense of existing companies.

More from the Buffalo News.

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