N.Y. TAX Law § 38 — New York Code / Act TAX / Article 1 / Section 38
New York innovation hot spot program tax benefits
Status: in_force

* § 38. New York innovation hot spot program tax benefits. (a) As used\nin this chapter, the terms "New York state innovation hot spot" and\n"qualified entity" shall have the same meaning as under section\nsixteen-v of the New York state urban development corporation act.\n  (b) A taxpayer under article nine-A of this chapter that is a\nqualified entity of a New York state innovation hot spot shall be\nsubject only to the fixed dollar minimum tax, imposed under paragraph\n(d) of subdivision one of section two hundred ten of this chapter, for\nfive taxable years, beginning with the first taxable year during which\nthe qualified entity becomes a tenant in or part of an innovation hot\nspot. A taxpayer under article nine-A of this chapter that is a\ncorporate partner in a qualified entity, or is a qualified entity that\nis located both within and without an innovation hot spot, shall be\nallowed only a deduction for the amount of income or gain included in\nits federal taxable income to the extent that the income or gain is\nattributable to the operations at or as part of the innovation hot spot.\nThe deduction is allowed for five taxable years, beginning with the\nfirst taxable year during which the qualified entity becomes a tenant in\nor part of an innovation hot spot.\n  (c) An individual who is the sole proprietor of a qualified entity or\na member of a limited liability company, a partner in a partnership or a\nshareholder in a New York subchapter S corporation where the limited\nliability company, partnership, or S corporation is a qualified entity,\nthat is taxable under article twenty-two of this chapter shall be\nallowed a deduction for the amount of income or gain included in its\nfederal adjusted gross income to the extent that the income or gain is\nattributable to the operations of a qualified entity at or as a part of\na New York state innovation hot spot. The deduction is allowed for five\ntaxable years, beginning with the first taxable year during which the\nqualified entity becomes a tenant in or part of an innovation hot spot.\n  (d) A qualified entity that is a tenant in or part of a New York state\ninnovation hot spot shall be eligible for a credit or refund for sales\nand use taxes imposed on the retail sale of tangible personal property\nor services under subdivisions (a), (b), and (c) of section eleven\nhundred five and section eleven hundred ten of this chapter. The credit\nor refund shall be allowed for sixty months beginning with the first\nfull month after the qualified entity becomes a tenant in an incubator\nhot spot.\n  (e) A taxpayer who claims any of the tax benefits described in this\nsection is no longer eligible for any other New York state exemptions,\ndeductions, or credit or refunds under this chapter to the extent that\nany such exemption, deduction, credit or refund is attributable to the\nbusiness operations of a tenant in or as part of the New York state\ninnovation hot spot. The election to claim the tax benefits described in\nthis section is not revocable.\n  (f) Cross-references. For application of the tax benefits provided for\nin this section, see the following provisions of this chapter:\n  (i) Article 9-A, section 208, subdivision (9), paragraph (a),\nsubparagraph (18).\n  (ii) Article 9-A, section 209, subdivision 11.\n  (iii) Article 22, section 612, subsection (c), paragraph (39).\n  (iv) Article 28, section 1119, subdivision (d).\n  * NB There are 2 § 38's\n