2023 New York Laws › TAX - Tax › Article 1 - Short Title; Definitions; Miscellaneous › 38 - New York Innovation Hot Spot Program Tax Benefits.

* § 38. New York innovation hot spot program tax benefits. (a) As used
in  this  chapter,  the  terms  "New York state innovation hot spot" and
"qualified  entity"  shall  have  the  same  meaning  as  under  section
sixteen-v of the New York state urban development corporation act.
(b)  A  taxpayer  under  article  nine-A  of  this  chapter  that is a
qualified entity of a New  York  state  innovation  hot  spot  shall  be
subject  only  to  the fixed dollar minimum tax, imposed under paragraph
(d) of subdivision one of section two hundred ten of this  chapter,  for
five  taxable  years, beginning with the first taxable year during which
the qualified entity becomes a tenant in or part of  an  innovation  hot
spot.  A  taxpayer  under  article  nine-A  of  this  chapter  that is a
corporate partner in a qualified entity, or is a qualified  entity  that
is  located  both  within  and  without an innovation hot spot, shall be
allowed only a deduction for the amount of income or  gain  included  in
its  federal  taxable  income  to  the extent that the income or gain is
attributable to the operations at or as part of the innovation hot spot.
The deduction is allowed for five  taxable  years,  beginning  with  the
first taxable year during which the qualified entity becomes a tenant in
or part of an innovation hot spot.
(c)  An individual who is the sole proprietor of a qualified entity or
a member of a limited liability company, a partner in a partnership or a
shareholder in a New York subchapter S  corporation  where  the  limited
liability  company, partnership, or S corporation is a qualified entity,
that is taxable under  article  twenty-two  of  this  chapter  shall  be
allowed  a  deduction  for  the amount of income or gain included in its
federal adjusted gross income to the extent that the income or  gain  is
attributable  to the operations of a qualified entity at or as a part of
a New York state innovation hot spot. The deduction is allowed for  five
taxable  years,  beginning  with the first taxable year during which the
qualified entity becomes a tenant in or part of an innovation hot spot.
(d) A qualified entity that is a tenant in or part of a New York state
innovation hot spot 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. The credit
or refund shall be allowed for sixty months  beginning  with  the  first
full  month  after the qualified entity becomes a tenant in an incubator
hot spot.
(e) A taxpayer who claims any of the tax benefits  described  in  this
section  is  no longer eligible for any other New York state exemptions,
deductions, or credit or refunds under this chapter to the  extent  that
any  such  exemption, deduction, credit or refund is attributable to the
business operations of a tenant in or as part  of  the  New  York  state
innovation hot spot. The election to claim the tax benefits described in
this section is not revocable.
(f) Cross-references. For application of the tax benefits provided for
in this section, see the following provisions of this chapter:
(i)   Article  9-A,  section  208,  subdivision  (9),  paragraph  (a),
subparagraph (18).
(ii) Article 9-A, section 209, subdivision 11.
(iii) Article 22, section 612, subsection (c), paragraph (39).
(iv) Article 28, section 1119, subdivision (d).
* NB There are 2 § 38's