A new scheme aiming to draw the startup spotlight from Palo Alto to New York will see the City offer generous tax-breaks for companies operating in or around New York City’s college and university campuses.
Starting in January next year, STARTUP-NY (State universities of New York [SUNY] Tax-free Areas to Revitalise and Transform Upstate New York) will offer startups and university spin-outs the opportunity to operate tax-free for ten years. This includes income, business, state, local, sales, and property taxes, as well as no franchise fees. Eligible businesses include new NY-based startups, out-of-state businesses looking to relocate, or NY-based companies looking to expand into a new line of business and create new jobs.
Aside from generating a breeding ground for spin-outs themselves, the plan aims to make it more viable for startups to transfer technology from New York’s universities through further building clusters around them, with a focus on State Universities of New York. It also seeks to retain more of the entrepreneurial students passing through the institutions with the offer.
Andrew Cuomo, governor of New York, said: “Hundreds of business leaders and CEOs from around the globe have come together for the official launch of START-UP NY to take advantage of the most ambitious economic development program in New York State’s recent history. In a tax free environment, no one can match what New York has to offer. Businesses that are looking to startup or expand, and most importantly create jobs, should look no further. We are leveraging our world-class SUNY system and prestigious private universities to partner with new businesses, providing direct access to advanced research, development resources, experts in high-tech and other industries and all with zero taxes for ten whole years. With an opportunity like that, it’s no wonder that companies are lining up for the launch of START-UP NY.”
