NY Econ Dev L § 433 (2021)
2021 New York Laws COM - Economic Development Law Article 21 - Start-Up Ny Program 433 - Eligibility Criteria for Businesses.

§ 433. Eligibility criteria for businesses. 1. In order to participate in the START-UP NY program, a business must satisfy all of the following criteria.  (a)  The  mission  and  activities  of the business must align with or further the academic  mission  of  the  campus,  college  or  university sponsoring  the  tax-free  NY  area in which it seeks to locate, and the business's participation in the START-UP NY program must  have  positive community and economic benefits.  (b)  The  business must demonstrate that it will, in its first year of operation, create net new jobs. After its first year of  operation,  the business  must maintain net new jobs. In addition, the average number of employees of the business and its related persons in  the  state  during the  year  must  equal  or  exceed the sum of: (i) the average number of employees of the business and its related persons in  the  state  during the  year  immediately  preceding the year in which the business submits its application to locate in a tax-free NY area; and (ii) net  new  jobs of  the  business  in  the tax-free NY area during the year. The average number of employees of the business and its related persons in the state shall be determined by adding together the total number of employees  of the business and its related persons in the state on March thirty-first, June  thirtieth,  September  thirtieth  and  December  thirty-first  and dividing the total by the number of such  dates  occurring  within  such year.  (c)  Except as provided in paragraphs (f) and (g) of this subdivision, at the time it submits its application for the START-UP NY program,  the business must be a new business to the state.  (d)  The  business  may  be organized as a corporation, a partnership, limited liability company or a sole proprietorship.  (e) Except as provided in paragraphs (f) and (g) of this  subdivision, the business must not be engaged in a line of business that is currently or  was  previously conducted by the business or a related person in the last five years in New York state.  (f) If a business does not satisfy the eligibility standard set  forth in  paragraph  (c)  or  (e) of this subdivision, because at one point in time it operated in New York state but moved its operations out  of  New York  state  on  or  before  June  first,  two  thousand  thirteen,  the commissioner  shall  grant  that  business  permission   to   apply   to participate  in  the  START-UP NY program if the commissioner determines that the business has demonstrated that it  will  substantially  restore the jobs in New York state that it previously had moved out of state.  (g)  If  a business seeks to expand its current operations in New York state into a tax-free NY area but the business does not qualify as a new business because it does not satisfy the criteria in  paragraph  (c)  of subdivision  six  of  section four hundred thirty-one of this article or the business does not satisfy the  eligibility  standard  set  forth  in paragraph  (e)  of  this  subdivision,  the commissioner shall grant the business permission to apply to participate in the START-UP  NY  program if  the  commissioner determines that the business has demonstrated that it will create net new jobs in the tax-free NY area and that it  or  any related  person  has  not eliminated any jobs in the state in connection with this expansion.   2. The following types of businesses are prohibited from participating in the START-UP NY program.  (a) retail and wholesale businesses;  (b) restaurants;  (c) real estate brokers;  (d) law firms;  (e) medical or dental practices;  (f) real estate management companies;  (g) hospitality;  (h) finance and financial services;  (i) businesses providing personal services;  (j)  businesses providing business administrative or support services, unless such business has received permission from  the  commissioner  to apply  to participate in the START-UP NY program upon demonstration that the business would create no fewer than one hundred net new jobs in  the tax-free NY area;  (k) accounting firms;  (l) businesses providing utilities; and  (m)   businesses   engaged   in  the  generation  or  distribution  of electricity, the distribution of natural gas, or the production of steam associated with the generation of electricity.   2-a. Additional eligibility requirements  in  Nassau  county,  Suffolk county, Westchester county and New York city. In order to be eligible to participate in the START-UP NY program in Nassau county, Suffolk county, Westchester county or New York city, a business must be:  (a) in the formative stage of development; or  (b)  engaged  in  the  design,  development,  and  introduction of new biotechnology,   information   technology,   remanufacturing,   advanced materials,  processing,  engineering  or  electronic technology products and/or  innovative  manufacturing  processes,  and   meet   such   other requirements for a high-tech business as the commissioner shall develop.   3.  A  business  must  be in compliance with all worker protection and environmental laws and regulations. In addition, a business may not  owe past due federal or state taxes or local property taxes.   4.  Any  business  that  has successfully completed residency in a New York state incubator pursuant to section sixteen-v  of  section  one  of chapter  one  hundred  seventy-four  of  the  laws  of  nineteen hundred sixty-eight constituting the urban development corporation act,  subject to  approval  of  the  commissioner,  may  apply  to  participate in the START-UP NY program provided that such business locates in a tax-free NY area, notwithstanding the fact that the business may  not  constitute  a new business.