2023 New York Laws › TAX - Tax › Article 1 - Short Title; Definitions; Miscellaneous › 39 - Tax Benefits for Businesses Located in Tax-Free Ny Areas and Employees of Such Businesses.

§  39.  Tax  benefits  for businesses located in tax-free NY areas and
employees of such businesses.  (a)  (1)  Any  business  or  owner  of  a
business  in  the  case  of  a  business taxed as a sole proprietorship,
partnership or New York S corporation, that is located in a tax-free  NY
area approved pursuant to article twenty-one of the economic development
law  is  eligible for the tax benefits described in this section. Unless
otherwise specified, such business or owner of such  business  shall  be
eligible  for these tax benefits for a period of ten consecutive taxable
years, commencing with the taxable year during which it locates  in  the
tax-free NY area.
(2)  In order to be eligible for these tax benefits during any taxable
year, calendar quarter or sales  tax  quarter,  such  business  must  be
approved  to participate in the START-UP NY program, must operate at the
approved location  in  the  tax-free  NY  area,  and  must  satisfy  the
eligibility  criteria  specified  in paragraph (b) of subdivision one of
section four hundred thirty-three of the economic development law.
(b) Tax-free NY area elimination credit. Such business or the owner of
such business shall be eligible for the tax-free NY area tax elimination
credit described in section forty of this article.
(c-1) Excise tax on telecommunication services. Such business or owner
of a business shall be eligible for  a  credit  of  the  excise  tax  on
telecommunication  services  imposed by section one hundred eighty-six-e
of this chapter that is passed through to such business, pursuant to the
provisions referenced in subdivision (k) of this section.
(d) Metropolitan commuter transportation district mobility tax. If the
tax-free NY area at  which  such  business  is  located  is  within  the
metropolitan  commuter transportation district (MCTD), and such business
is an employer engaged in business within the MCTD, the payroll  expense
of  such  business at such location within the tax-free NY area shall be
exempt from the metropolitan commuter transportation  district  mobility
tax  imposed  under  article  twenty-three  of  this  chapter  for forty
consecutive calendar quarters,  commencing  with  the  calendar  quarter
during  which  the  employer  locates in the tax-free NY area within the
MCTD. If the tax-free NY area at  which  such  business  is  located  is
within  the MCTD and the owner of such business is an individual who has
net earnings from self-employment at such location,  such  net  earnings
shall  be  exempt from the metropolitan commuter transportation district
mobility tax imposed under article twenty-three of this chapter for  ten
consecutive  taxable years commencing with the taxable year during which
the business locates in the tax-free NY area.
(e) To the extent specified, the wages of  an  individual  who  is  an
employee  of  such  business  located within a tax-free NY area received
from such business for employment in such  tax-free  NY  area  shall  be
eligible  for  the  benefits  as  provided in article twenty-two of this
chapter, the New York city personal income tax as  provided  in  article
thirty  of  this  chapter,  the  Yonkers  city income tax as provided in
article thirty-A of this  chapter,  and  the  Yonkers  earnings  tax  on
non-residents  during  the  ten  taxable  year  period for such business
specified in subdivision (a) of this section, provided the  requirements
of this subdivision are satisfied.
(i)  The  individual when employed by such business must be engaged in
work performed exclusively at the location within the tax-free  NY  area
during the taxable year.
(ii)  The individual when employed by such business must be engaged in
work at the location of such business within the tax-free NY area for at
least one-half of the taxable year.
(iii) Such business must be in compliance with  the  requirements  set
forth in subdivision (a) of this section.
(iv) The individual must be employed by such business in a net new job
created by such business in the tax-free NY area.
(f) Sales and use tax. Such business shall be eligible for a credit or
refund  for  sales  and use taxes imposed on the retail sale of tangible
personal property or services under subdivisions (a), (b),  and  (c)  of
section  eleven  hundred  five  and  section  eleven hundred ten of this
chapter and similar taxes imposed pursuant to the authority  of  article
twenty-nine  of  this chapter. The credit or refund shall be allowed for
one hundred twenty consecutive months beginning with  the  month  during
which such business locates in the tax-free NY area.
(g) Real estate transfer taxes. Any lease of property to such business
shall be exempt from any state or local real estate transfer tax or real
property transfer tax.
(h) (A) Notwithstanding any provision of this chapter to the contrary,
the  commissioner,  to the extent practicable, may disclose publicly the
names and addresses of the businesses receiving any of the tax  benefits
specified  in  this  section. In addition, the commissioner may disclose
publicly the amounts of such benefits allowed to each such business, and
whether or not a business created or maintained net new jobs during  the
taxable  year.  With  regard  to  the  income tax exemption specified in
subdivision (e) of this section, the commissioner may publicly  disclose
the  aggregate  amounts  of  such tax exemption allowed to employees. In
addition, the commissioner may publicly disclose the number of  net  new
jobs  such  business  reports  on  its tax return or report or any other
information necessary for the commissioner of  economic  development  or
the  campus,  college  or  university  sponsoring  the  tax-free NY area
approved pursuant to article twenty-one of the economic development  law
to  monitor  and  enforce compliance with the law, rules and regulations
governing the START-UP NY program.
(B) Notwithstanding any provision of this chapter to the contrary, the
commissioner, in determining whether a business or any of its owners  is
entitled  to the tax benefits described in this section, may utilize and
if necessary, disclose to  the  commissioner  of  economic  development,
information  derived  from  the  tax returns of such business or related
persons of such business and wage reporting information relating to  any
employees of such business or its related persons.
(i)  Such  business shall not be allowed to claim any other tax credit
allowed under this chapter with respect to its activities  or  employees
in such tax-free NY area.
(j) If the application of a business for participation in the START-UP
NY  program  specifies  that  failure to meet the performance benchmarks
specified in such application shall result in proportional  recovery  of
tax  benefits  awarded under the START-UP NY program, the business shall
be required to reduce the total amount of tax benefits described in this
section that the business or its owners claimed or received  during  the
taxable year by the percentage reduction in net new jobs promised by the
performance benchmarks, and if the tax benefits are reduced to an amount
less  than  zero, those negative amounts shall be added back as tax. The
amount required to be added back shall be reported  on  such  business's
corporate   franchise  tax  report  if  such  business  is  taxed  as  a
corporation or on the corporate franchise tax reports or personal income
tax returns of the owners of such business if such business is taxed  as
a sole proprietorship, partnership or New York S corporation.
(k) Cross-references. For application of the tax benefits provided for
in this section, see the following provisions of this chapter:
(1) Section 40.
(4) Article 9-A: section 210-B, subdivision 41 and subdivision 44.
(5)   Article   22:   section  606,  subsection  (i),  paragraph  (1),
subparagraph (B), clause (xxxvi).
(6) Article 22: section 606, subsection (ww) and subsection (yy).
(7) Article 22: section 612, subsection (c), paragraph (40).
(8) Article 23: section 803.
(9) Article 28: section 1119, subdivision (d).
(10) Article 31: section 1405, subdivision (b), paragraph 11.