New York Governor Andrew Cuomo has proposed “Tax-Free NY,” a plan that would create tax-free status for new businesses on the State University of New York’s 64 campuses and the nearly 200,000 square feet around their campuses. What makes his plan unique compared to other state leaders’ tax incentive programs is the depth of tax savings. Specifically, these businesses would pay no corporate, property, or sales taxes, and their owners and employees would pay no income taxes. This would be the first time that New York instituted a plan where employees would not owe income taxes to the state. The stated purpose of this plan is to attract start-ups and other businesses to these depressed regions of the state.
Taxpayers who are interested in relocating to areas near SUNY schools should evaluate the significant cost savings associated with this plan. This plan has not been approved by the legislature, but Governor Cuomo is actively promoting this as part of a larger plan to make New York competitive with states seeking to attract high-technology jobs.
If you have questions about Tax-Free NY, please contact Amol Jain at AJain@brg-expert.com or 202.480.2678.
The views expressed in this article are those of the authors and do not necessarily reflect the position or policy of Berkeley Research Group, LLC.
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