What's happening
This bill exempts certain equipment purchases of $500 or more by companies in state or college-affiliated incubators from sales tax.
Why it matters
Supports Startup Growth in Incubators. By removing sales tax on qualifying equipment purchases for companies in state or college-affiliated incubators, the bill lowers operational costs for startups, potentially increasing their survival and growth rates during the critical early stages.
Promotes Innovation and Economic Development. The tax exemption incentivizes more entrepreneurs to join and remain in incubators, which are often hubs for technological advancement and job creation, thus fostering local economic development and innovation ecosystems.
Targets Significant Investments Only. The exemption applies only to equipment costing $500 or more, encouraging companies to make substantial investments in tools and technology that can enhance productivity and competitiveness, rather than benefiting from tax breaks on minor or consumable purchases.
Ensures Onsite Use. The requirement that equipment be used "directly and predominately" within the incubator facility aims to prevent abuse of the exemption and ensures that the tax benefit directly supports activities taking place within these innovation-focused environments.
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Who cares
Headline styles
Tax Break for Incubator Startups
Plain English, a few words. Used as the page title.
Sponsors
1 Co-sponsor
2 Multi-sponsors
History
- Print number 3330a
- Amend and recommit to ways and means
- Referred to ways and means
- Referred to ways and means
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Tax Break for Incubator Equipment
In Assembly Committee · Ways And Means · Sponsor Kenneth P. LaValle
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
S. 3828--A A. 3330--A Cal. No. 1340
2017-2018 Regular Sessions
SENATE - ASSEMBLY
January 27, 2017
IN SENATE -- Introduced by Sens. LAVALLE, CARLUCCI, GOLDEN, LARKIN, MURPHY, RANZENHOFER, SEWARD -- read twice and ordered printed, and when printed to be committed to the Committee on Investigations and Government Operations -- recommitted to the Committee on… Show allHide
IN SENATE -- Introduced by Sens. LAVALLE, CARLUCCI, GOLDEN, LARKIN, MURPHY, RANZENHOFER, SEWARD -- read twice and ordered printed, and when printed to be committed to the Committee on Investigations and Government Operations -- recommitted to the Committee on Investigations and Government Operations in accordance with Senate Rule 6, sec. 8 -- reported favorably from said committee and committed to the Committee on Finance -- reported favorably from said committee, ordered to first report, amended on first report, ordered to a second report and ordered reprinted, retaining its place in the order of second report
IN ASSEMBLY -- Introduced by M. of A. SCHIMMINGER, COLTON -- Multi-Sponsored by -- M. of A. KOLB, MAGEE -- read once and referred to the Committee on Ways and Means -- recommitted to the Committee on Ways and Means in accordance with Assembly Rule 3, sec. 2 -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee
AN ACT to amend the tax law, in relation to providing an exemption from the tax on sales and the compensating use tax for certain equipment purchased by companies located in academic incubator facilities
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Subdivision (a) of section 1115 of the tax law is amended by adding a new paragraph 45 to read as follows:
(45) Equipment with a purchase price of five hundred dollars or greater purchased by any company located in an incubator facility that is associated with a college, as defined in subdivision two of section two of the education law, or an incubator facility that is funded by the state. Such equipment must be used directly and predominately within such incubator facility.
§ 2. This act shall take effect September 1, 2018.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD07985-02-8
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.