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S3828Senate2017-2018 SessionSame asA3330

Tax Break for Incubator Equipment

Official title

“Provides an exemption from the tax on sales and the compensating use tax for certain equipment purchased by companies located in college incubator facilities”

Sponsor Kenneth P. LaValleSD-1+6 co-sponsorsAffects Finance
Status
In Assembly Committee
Ways And Means
Impact
5/10
Moderate
Passage
0%

Bill progress

Step 5 of 7

In Assembly · Ways And Means

What's happening

This bill exempts certain equipment purchases by companies in college-affiliated or state-funded incubators from New York sales and use tax.

Why it matters

  1. Targets growth-stage startups. By exempting equipment purchases of $500 or more, the bill specifically supports companies making significant investments, likely those scaling up rather than very early stage or hobbyist ventures.

  2. Focuses support on academic and state-linked innovation hubs. The exemption is only for companies operating in incubators tied to colleges or state-funded facilities, aiming to boost the economic impact of public and academic innovation ecosystems.

  3. Incentivizes local, facility-based investment. The requirement that equipment be used “directly and predominately” within the incubator facility ensures that the tax benefit is tied to on-site activity, encouraging companies to remain and grow within these collaborative spaces.

  4. Potentially enhances job creation and retention. By reducing overhead costs for startups in these incubators, the bill may help such companies devote more resources to hiring, R&D, and staying in New York, rather than relocating to more favorable tax environments.

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Who cares

Headline styles

Tax Break for Incubator Equipment

Plain English, a few words. Used as the page title.

Sponsors

Primary sponsor
Kenneth P. LaValle

Senator · Senate District 1

Chair, Higher Education

History

  1. Referred to ways and means
  2. Delivered to assembly
  3. Passed senateVote 62–0
  4. Advanced to third reading
  5. 2nd report cal.
  6. Amended 3828a
  7. 1st report cal.1340
  8. Reported and committed to finance
  9. Referred to investigations and government operations
  10. Returned to senate
  11. Died in assembly
  12. Referred to ways and means
Show 7 earlier actions
  1. Delivered to assembly
  2. Passed senateVote 63–0
  3. Advanced to third reading
  4. 2nd report cal.
  5. 1st report cal.891
  6. Reported and committed to finance
  7. Referred to investigations and government operations

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.

A3330Assembly

Tax Break for Incubator Startups

In Assembly Committee · Ways And Means · Sponsor Robin Schimminger

Impact 5 · Moderate0% to pass

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 all

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.

Sponsor's memo

Title of bill

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

Purpose

This legislation is consistent with our state's general efforts to encourage the creation and growth of small business. Companies in incu- bators, by their nature, are small and have limited resources. This bill alleviates a small but significant tax burden on these firms by exempting them from sales tax on equipment that costs $500 or more.

Summary of provisions

Section 1 of the bill amends section 1115 of the tax law which provides companies that are located in an academic incubator facility with a sales tax exemption for the purchase of equipment with a price of $500 or more, and provides for the definition of an academic incubator.

Justification

During the last decade, one of the most effective state tools used to encourage job growth and creation has been its investment in high tech- nology incubators. Incubator facilities provide researchers and entre- preneurs with the physical space and support staff necessary to help transfer the technology developed in the laboratory into a commercial product of value.

Efforts to develop research ides into viable products are usually done with limited resources. Costs of operation must be kept at a minimum to allow researchers the opportunity to advance their theories. Incubators certainly provide low cost office space, however, rents are not the only expense that these businesses incur. Equipment costs can also be a major impediment to the success of the business. To help reduce this cost this bill would exempt business. To help rescue this cost this bill would exempt businesses located in incubators from sales tax on equipment purchases. Taxing this equipment is contrary to the general concept of incubators, which is to reduce the cost associated with a start-up firm struggling to develop its ides/research into a product.

The amendment clarifies that the exemption is only for those companies located in an academic incubator facility and the equipment be used in the incubator facility.

Legislative history

2015-16 S.2812A/A.4035A; 2013-14 S.2021A/A.1929A; 2011-12 S.3175A/A.5027A; 2009-10 S.1997; 2007-08 S.942B; 2005-06 S.1415A; 2003-04 S.485; 2001-02 S.2341.

Fiscal implications

Implementation: There would be some loss of state revenue.

Effective date

This act shall take effect September 1, 2018.

Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.