New York Consolidated Laws, Tax Law - TAX § 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.  1

(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: