NEW YORK CITY INCENTIVES



1. REAP—Administered by the NYC Department of Finance. Tax credit of $3,000 per job per year for twelve years for each job relocated or added within five years of the initial relocation, capped at the greater of 100 jobs or
two times the total employment before the move.


2. IBZ Relocation Credit—Administered by the Mayor’s Office of Industrial and Manufacturing Businesses. This is a one-time credit for industrial firms relocating into or within a targeted industrial business zone (IBZ). Businesses
are credited for eligible moving costs up to the lesser of $1,000 per full-time employee or $100,000. The Brooklyn Navy Yard is an IBZ.


3. IDA Double Tax-Exempt Bond Program—Administered by the New York City Economic Development Corporation (EDC). There is only a limited interest rate benefit but long term financing could be available. Through this program
there would be a waiver of the New York City sales tax on construction material.


4. NYC Business Solutions is a set of services offered by the Department of Small Business Services to help businesses start, operate and expand in New York City. All of its services are provided at no cost and address the needs of businesses of any size
and at any stage.


5. NYC Business Express is New York City’s business website that provides guidance on regulations and incentives, and offers permit and license applications for launching or operating a business in NYC. It includes an Incentives Estimator that can help identify and provide financial estimates for incentive programs.



NEW YORK STATE INCENTIVES



1. New York State Energy Research Development Authority (NYSERDA)—this agency offers free energy conservation studies to help businesses design energy-efficient new buildings.


2. NYS Regional Council and Consolidated Funding Application—New York has divided the State into eight regions each with its own Regional Council. New York City is one of these regions. The New York City Regional Council brings together stakeholders to serve as a coordinated point of contact for economic development. The stakeholders include representatives of the private sector, the legislature, offices of the borough presidents, academia, civic leaders, non-profit and community-based organizations. The Regional Council has developed a plan for the development of New York City. The State is working with the Regional Councils to align State resources and policies, eliminate unnecessary barriers to growth and prosperity, and streamline the delivery of government services and programs to help the Regional Councils carry out their plans for development. A Consolidated Funding Application combines resources from dozens of existing programs. Through the Regional Councils private sector companies can apply for State funding for projects they determine to be part of their regional strategy. The State funding may be in the form of capital grants or tax credits.

TAX CREDIT INCENTIVES

1. Section 179 Deduction--Federal tax credit for certain qualified property and equipment (purchased or leased) for business use and placed into service. Most types of equipment are eligible. See federal Instructions for Form for more details.

2. Sales Tax Exemption for Manufacturers—Provides an exemption on City and State sales tax for energy used in production and the purchase, installation and maintenance of production machinery, equipment, parts, tools and supplies in production. Businesses purchasing energy and equipment to be used in manufacturing, processing or assembling of tangible personal property are eligible. To apply, businesses must have a valid Certificate of Authority (DTF-17) and are required to file form ST-121.


3. Investment Tax Credit--Business tax credit on purchases of machinery and equipment used in processing or manufacturing of goods

  • Credit is equal to 5% of the total cost of the equipment
  • If business is also hiring, they may be eligible for the Employment Incentive Credit. 
  • Machinery / equipment used in manufacturing or processing of goods is eligible for this tax credit.



OTHER PROGRAMS



1. Brooklyn Navy Yard Employment Center. BNYDC’s Employment Center will help the company to find qualified employees. Using its network of providers, BNYDC can also help the company to find training programs to improve the skills of its existing workforce.

2. Industrial and Technology Assistance Corporation (ITAC)—May assist company to increase its efficiency through sound plant layout and help to upgrade and improve the skills of employees.