A place with a 0% State Income Tax rate for manufacturers.
A place with helpful and knowledgeable IDA staff who will match your project with the right incentive package.
A state with tax based incentives for “green” projects, job-creation, and R&D.
A place with a unique team approach focused on your success.
Incentives, Tax Credits, & Assistance to Give Your Business A Competitive Edge
Our local and state economic development agencies offer a variety of incentives and services to help you achieve success including:
- Low Interest Loans
- Industrial Revenue Bonds
- Tax Abatements
- Job Training Assistance
- Foreign Trade Zones
- Employee Recruitment Assistance
- Immigration & Export Assistance
- Grant Sourcing
- ReCharge NY
- And Much More!
In addition, qualified New York manufacturers benefit from a zero percent tax rate on their business income base, a reduced tax rate and cap on their capital tax base, lower fixed dollar minimum tax amounts, and a real property tax credit!
Check out some of our most popular state and local incentives below and don’t hesitate to contact us to learn more.
Excelsior Tax Credits
Excelsior Tax Credits - Firms in the Excelsior Jobs Program may qualify for four new, fully refundable tax credits. Businesses claim the credits over a 10 year period.
- The Excelsior Jobs Tax Credit: A credit of 6.85% of wages per net new job or 7.5% of wages per net new job for a qualified green project.
- The Excelsior Investment Tax Credit: A credit valued at 2% of qualified investments or 5% of qualified investments for a qualified green project.
- The Excelsior Research and Development Tax Credit: A credit of 50% of the Federal Research and Development credit up to 6% (or 8% for qualified green projects) of research expenditures in NYS.
- The Excelsior Real Property Tax Credit: Available to firms locating in certain distressed areas and to firms in targeted industries that meet higher employment and investment thresholds.
Other State Incentives
Zero Percent Income Tax Rate for Manufacturers
Did you know that the income tax rate for qualified manufacturers in New York is 0%? It’s that simple. Compare that with neighboring states:
- New Jersey - 10.05%
- Pennsylvania - 9.99%
- Massachusetts - 8%
- Connecticut - 7.5%
- Vermont - 6.5%
For more information, including the definition of a “qualified manufacturer”, click here.
Industrial Development Agency (IDA) Incentives
The North Country Chamber of Commerce works closely with our local county IDAs whose mission it is to promote, encourage, and attract business location, growth, and expansion in NYS. This is primarily achieved through the IDAs ability to issue bonds and provide financial assistance to private sector entities in the form of tax incentives. Some of the most common IDA assistance available is covered below.
Real Property Tax Abatements - Payment-In-Lieu-of-Tax Agreements (PILOTs)
- One of the most common IDA incentives is a payments-in-lieu-of-tax, or a PILOT arrangement which provides an abatement on incremental real property taxes.
To rephrase, a PILOT is used to lower the expense for a company in their start-up or expansion phase. This is done by lowering the amount of taxes owed/paid at the beginning of a project by instead having the business-entity make payments to affected taxing jurisdictions (local government, school district, etc.) on an agreed-upon schedule, only after which, they pay taxes on the full assessed value of the project.
A project may qualify for a PILOT from an IDA if it meets certain eligibility criteria. An agreement is then entered into between the IDA and applicant, the applicant agrees to make payments in lieu of taxes for which they would be responsible for, if this were not an IDA project.
Tax Exempt Bond Financing
- IDAs can offer tax-exempt Industrial Revenue Bonds (IRBs) to qualified projects. A good estimate is that tax-exempt financing is between 67-70% of what the comparable rate on a taxable financing would be.
Eligible project vary but typically include: Purchase & Rehabilitation of existing buildings, Constructing of new buildings or additions; and Financing of machinery & equipment in conjunction with construction, rehabilitation or additions to a facility that is Industrial, Warehousing, Research, Tax-Exempt Projects, Small Alternate Energy Projects, Wind Farm, Commercial – Permitted Retail and Permitted Medical, Residential, Distributive Service, Recreation, or Adaptive Reuse.
Mortgage Recording and Sales Tax Exemption
- IDA’s can also typically offer exemptions from the mortgage recording tax and NYS sales tax for bond financed and straight-leaseback transactions projects as a part of the IDA Uniform Tax Exemption Policy.
Exemption from Sales and Use Taxes
- IDA approved projects may be exempt from the payment of sales and use taxes on qualified purchases. A business that is approved for IDA benefits, along with its contractor, can be appointed as an agent of the IDA with respect to a project in order to receive an exemption from sales and use taxes for certain purchases.
For more information, click the links below or contact us.
Clinton County IDA (CCIDA)
Essex County IDA
Franklin County IDA
Hamilton County IDA
St. Lawrence County IDA