N.Y. COM Law § 433 — New York Code / Act COM / Article 21 / Section 433
Eligibility criteria for businesses
Status: in_force

§ 433. Eligibility criteria for businesses. 1. In order to participate\nin the START-UP NY program, a business must satisfy all of the following\ncriteria.\n  (a) The mission and activities of the business must align with or\nfurther the academic mission of the campus, college or university\nsponsoring the tax-free NY area in which it seeks to locate, and the\nbusiness's participation in the START-UP NY program must have positive\ncommunity and economic benefits.\n  (b) The business must demonstrate that it will, in its first year of\noperation, create net new jobs. After its first year of operation, the\nbusiness must maintain net new jobs. In addition, the average number of\nemployees of the business and its related persons in the state during\nthe year must equal or exceed the sum of: (i) the average number of\nemployees of the business and its related persons in the state during\nthe year immediately preceding the year in which the business submits\nits application to locate in a tax-free NY area; and (ii) net new jobs\nof the business in the tax-free NY area during the year. The average\nnumber of employees of the business and its related persons in the state\nshall be determined by adding together the total number of employees of\nthe business and its related persons in the state on March thirty-first,\nJune thirtieth, September thirtieth and December thirty-first and\ndividing the total by the number of such dates occurring within such\nyear.\n  (c) Except as provided in paragraphs (f) and (g) of this subdivision,\nat the time it submits its application for the START-UP NY program, the\nbusiness must be a new business to the state.\n  (d) The business may be organized as a corporation, a partnership,\nlimited liability company or a sole proprietorship.\n  (e) Except as provided in paragraphs (f) and (g) of this subdivision,\nthe business must not be engaged in a line of business that is currently\nor was previously conducted by the business or a related person in the\nlast five years in New York state.\n  (f) If a business does not satisfy the eligibility standard set forth\nin paragraph (c) or (e) of this subdivision, because at one point in\ntime it operated in New York state but moved its operations out of New\nYork state on or before June first, two thousand thirteen, the\ncommissioner shall grant that business permission to apply to\nparticipate in the START-UP NY program if the commissioner determines\nthat the business has demonstrated that it will substantially restore\nthe jobs in New York state that it previously had moved out of state.\n  (g) If a business seeks to expand its current operations in New York\nstate into a tax-free NY area but the business does not qualify as a new\nbusiness because it does not satisfy the criteria in paragraph (c) of\nsubdivision six of section four hundred thirty-one of this article or\nthe business does not satisfy the eligibility standard set forth in\nparagraph (e) of this subdivision, the commissioner shall grant the\nbusiness permission to apply to participate in the START-UP NY program\nif the commissioner determines that the business has demonstrated that\nit will create net new jobs in the tax-free NY area and that it or any\nrelated person has not eliminated any jobs in the state in connection\nwith this expansion.\n  2. The following types of businesses are prohibited from participating\nin the START-UP NY program.\n  (a) retail and wholesale businesses;\n  (b) restaurants;\n  (c) real estate brokers;\n  (d) law firms;\n  (e) medical or dental practices;\n  (f) real estate management companies;\n  (g) hospitality;\n  (h) finance and financial services;\n  (i) businesses providing personal services;\n  (j) businesses providing business administrative or support services,\nunless such business has received permission from the commissioner to\napply to participate in the START-UP NY program upon demonstration that\nthe business would create no fewer than one hundred net new jobs in the\ntax-free NY area;\n  (k) accounting firms;\n  (l) businesses providing utilities; and\n  (m) businesses engaged in the generation or distribution of\nelectricity, the distribution of natural gas, or the production of steam\nassociated with the generation of electricity.\n  2-a. Additional eligibility requirements in Nassau county, Suffolk\ncounty, Westchester county and New York city. In order to be eligible to\nparticipate in the START-UP NY program in Nassau county, Suffolk county,\nWestchester county or New York city, a business must be:\n  (a) in the formative stage of development; or\n  (b) engaged in the design, development, and introduction of new\nbiotechnology, information technology, remanufacturing, advanced\nmaterials, processing, engineering or electronic technology products\nand/or innovative manufacturing processes, and meet such other\nrequirements for a high-tech business as the commissioner shall develop.\n  3. A business must be in compliance with all worker protection and\nenvironmental laws and regulations. In addition, a business may not owe\npast due federal or state taxes or local property taxes.\n  4. Any business that has successfully completed residency in a New\nYork state incubator pursuant to section sixteen-v of section one of\nchapter one hundred seventy-four of the laws of nineteen hundred\nsixty-eight constituting the urban development corporation act, subject\nto approval of the commissioner, may apply to participate in the\nSTART-UP NY program provided that such business locates in a tax-free NY\narea, notwithstanding the fact that the business may not constitute a\nnew business.\n