The State of New York offers competitive incentive programs to help your business grow and expand. There are many tax credits and exemptions as well. Key incentives are highlighted below. Contact Madison County Industrial Development Agency for guidance in accessing these and other incentives.
Key State Tax Credits
- Investment Tax Credit (ITC). Businesses that create new jobs and make new investments in production property and equipment may qualify for tax credits of up to 10% of their eligible investment. New businesses may elect to receive a refund of certain credits, and all unused credits can be carried forward for 15 years.
- Research and Development Tax Credit. Investments in research and development facilities are eligible for a 9% corporate tax credit. Additional credits are available to encourage the creation and expansion of emerging technology businesses, including a three-year job creation credit of $1,000 per employee and a capital credit for investments in emerging technologies.
- Sales Tax Exemptions. New York State offers exemptions for purchases of production machinery and equipment, research and development property, and fuels/utilities used in manufacturing and R&D.
- Real Property Tax Abatement. To encourage development, expansion, and improvement of commercial property, a 10-year property tax abatement is available to offset increased assessments due to improvements to business and commercial property.
- No Personal Property Tax. Unlike many other states, which tax both real property and personal property, property taxes in New York State are imposed on real property only. Personal property, whether tangible or intangible, is exempt from state and local taxes.
Key State and Federal Incentives
Excelsior Jobs Tax Credit:
- A credit of up to 6.85% of wages per net new job.
- For a qualified green project, a credit of up to 7.5% of wages per net new job.
Excelsior Investment Tax Credit:
- A credit valued at 2% of qualified investments.
- For a qualified green project, a credit valued at 5% of qualified investments.
- For investments in child care services, a credit up to 5% of qualified investments.
Excelsior Research and Development Tax Credit:
- A credit of 50% of the portion of the Federal Research and Development tax credit that relates to expenditures in NYS up to credit up to 6% of research expenditures attributable to activities conducted in NYS.
- For a qualified green project, a credit of 50% of the portion of the Federal Research and Development tax credit that relates to expenditures in NYS up to 8% of research expenditures attributable to activities conducted in NYS.
Excelsior Real Property Tax Credit:
- Available to firms locating in certain distressed areas and to firms in targeted industries that meet higher employment and investment thresholds (Regionally Significant Project).
The Excelsior Child Care Services Tax Credit:
- A credit of up to 6% of net new child care services expenditures for the operation, sponsorship or direct financial support of a childcare services program.
- Manufacturing Assistance Program. This program assists New York State manufacturers invest in capital projects that significantly improve production, productivity and competitiveness. MAP funds must be used for capital investments in machinery and equipment. Projects may also include Industrial Effectiveness consulting and/or worker skills training. Projects must achieve substantial and measurable improvements to the output, productivity and competitiveness of the manufacturing facility,
- New Market Tax Credits. The New Markets Tax Credit program subsidizes long-term capital investment in order to foster job creation and community development in Low-Income Communities throughout New York State. Empire State Development (ESD) has available interest-only loans at below-market rates, a portion of which may be forgiven upon maturity.
- The Linked Deposit Program. This programs gives eligible businesses the ability to obtain loans from commercial banks, savings banks, savings and loan associations, farm credit institutions and the New York Business Development Corporation at a two- to three-percentage points savings on the prevailing interest rate, making borrowing less expensive. This program has recently been expanded, contact us for further details.
Madison County Industrial Development Agency
The Madison County Industrial Development Agency provides benefits to qualified companies in four primary ways:
- Ability to issue taxable and tax-exempt Industrial Development Bonds
- Ability to facilitate PILOT (Payment in Lieu Of Taxes) agreements*
- 10 year benefit; years 1-5 with a 50% reduction, 10% step-up in payments annually
- 15-year expanded benefit for target industries; years 1-5 with a 75% reduction, years 6-10 with a 50% reduction, and years 11-15 with a 25% reduction in equivalent property tax payments
- Sales tax exemptions of 8% for material and equipment used in the construction of new or expanded facilities
- Mortgage recording tax exemption (3/4 of 1% in Madison County)
County Loan Incentives
The Madison County Industrial Development Agency offers lending programs designed to promote job growth for companies located within the county or contemplating relocation into the county. These lending programs are primarily targeted towards manufacturing firms, however consideration for loans to non-manufacturing firms will be reviewed on a case-by-case basis. Typical loans are pegged at prime plus 1%, and are tied to the life of the equipment being purchased.
- The Revolving Loan Fund provides fixed rate loans up to $100,000 based on a company’s job creation projections. The loan fund provides capital for real estate, machinery, or equipment acquisition.
- Agricultural Revolving Loan fund helps create or expand value-added and direct marketing opportunities, by providing up to $10,000 for farm stand infrastructure (construction, design development, market analysis, etc.) and value-added agricultural product development.
- City Loan Program offers a loan program for companies located inside the City of Oneida boundaries. This program provides fixed rate loans up to $60,000. Proceeds can be used for most business related capital investment projects. Eligibility is based on a case-by-case review of the project.
- Some Villages also manage individual revolving loan funds. Inquire if you have an interest on a program in a specific community.
National Grid Incentives
National Grid offers two types of incentives for relocating or expanding businesses: Energy Infrastructure Programs and Energy Pricing Programs. Highlights of each are shown below. Contact Madison County IDA or National Grid for more information about these programs.
Energy Infrastructure Programs
(Note that these programs are part of the New York State Public Service Commission approved National Grid’s New York Economic Development Plan):
Capital Investment Incentive
The Capital Investment Incentive
The Capital Investment Incentive program provides grants to fund electric and natural gas improvements on National Grid owned or required natural gas and electric infrastructure for certain businesses projects that involve major capital investment in plant and equipment.
Industrial Building Redevelopment
The Industrial Building Assistance program provides grants of up to $250,000 to building owners undertaking efforts to retrofit the interior electric and gas infrastructure required to convert these buildings to multi-tenant industrial use.
The Brownfield Redevelopment program provides grants to fund utility related infrastructure improvements and other costs that are necessary to progress the redevelopment of a brownfield site or vacant building.
Three Phase Power Incentive
The 3-Phase Power Incentive program provides grants of up to $50,000 to help fund the extension of 3-phase electric service to eligible National Grid customers.
Renewable Energy and Economic Development
This program will fund a limited number of projects in the National Grid service territory that demonstrate alternative generation technologies while producing significant economic development benefits for the region.
Energy Pricing Programs
Natural Gas Discounts
The EZR natural gas program offers discounts that range from 3 to 5 cents per therm, depending on service classification and consumption.
Electric Pricing Discounts (SC-12)
This electric pricing program has greatly enhanced National Grid’s ability to help existing and prospective customers capitalize on business opportunities. SC-12 is an umbrella program that covers the full range of competitive situations, including business attraction, business expansion and customer retention.
SC-12 Growth Programs
- Business Attraction-This program offers discounts to prospective customers who are evaluating locations both inside and outside National Grid’s service territory. It is also open to new businesses considering a start-up of operations in the National Grid service territory.
- Business Expansion-Our business expansion program is available to current National Grid customers (25 kW or larger) who are evaluating an expansion of their existing usage-either through physical expansion (i.e., increase in kW) or increased utilization (i.e., higher kWh usage).
SC-12 Retention Programs
- Revitalization-This program is designed to retain large manufacturing facilities in danger of closure due to financial distress.
- Relocation-Open primarily to our larger industrial customers, this program offers discounts to prevent the relocation of manufacturing facilities to areas outside the National Grid service territory.
Contact us to learn more about the advantages of growing your business in Madison County, New York.
* Property tax benefits are based on local assessments, which are determined annually by the local taxing district.