What's happening
This bill repeals Article 21 of the economic development law, effectively ending the START-UP NY program.
Why it matters
Ends a major economic incentive program. By repealing Article 21, the bill eliminates the START-UP NY program, which provided tax-free zones for new and expanding businesses affiliated with SUNY (State University of New York) campuses, impacting how the state attracts and supports startups.
Potential shift in state economic development strategy. The repeal signals a move away from tax incentives as a primary tool for economic growth, possibly leading to new or alternative approaches for fostering job creation and investment in upstate New York.
Implications for universities and local economies. SUNY campuses and the communities around them may lose a key tool for fostering partnerships between academia and the private sector, potentially affecting local innovation ecosystems and job opportunities.
Budgetary and tax base effects. Ending the program could increase state tax revenues by removing exemptions previously granted to participating companies, but might also deter some business investments that relied on these incentives.
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Who cares
START-UP NY businesses
The bill would immediately repeal the article of economic development law establishing the program under which they participate.
SUNY campuses involved in START-UP NY
The bill would remove the statutory framework for the SUNY Tax-free Areas to Revitalize and Transform UPstate New York program.
State economic development officials
The bill would immediately repeal the START-UP NY program provisions in economic development law.
Headline styles
End START-UP NY Program
Plain English, a few words. Used as the page title.
Sponsors
1 Co-sponsor
History
- Referred to commerce, economic development and small business
- Referred to commerce, economic development and small business
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
1841
2019-2020 Regular Sessions
IN SENATE
January 16, 2019
Introduced by Sen. JORDAN -- read twice and ordered printed, and when printed to be committed to the Committee on Commerce, Economic Development and Small Business
AN ACT to repeal article 21 of the economic development law relating to the "SUNY Tax-free Areas to Revitalize and Transform UPstate New York program", or the "START-UP NY program"
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Article 21 of the economic development law is REPEALED.
§ 2. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD07575-01-9
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to repeal article 21 of the economic development law relating to the "SUNY Tax-free Areas to Revitalize and Transform UPstate New York program", or the "START-UP NY program"
Summary of provisions
Section 1 repeals Article 21 of the Economic Development Law, which authorizes the START-UP NY program.
Section 2 sets forth the effective date.
Justification
In recent years, New York State has been the leader in outmigration as former residents leave for better economic opportunities elsewhere across the United States. According to numerous surveys and studies, one of the top reasons people leave New York is due to our state's crushing tax burden and a lack of economic opportunities, especially in the Upstate region.
The START-UP NY program, which purported to revitalize and transform Upstate, has been a dismal failure. Sources vary, but the program has created less than 1,200 net new jobs despite the initial legislation providing for up to 10,000 employees allowed under the program's tax benefits. Even in spite of the program's failings, New York's taxpayers have continued to fund START-UP NY through the State budget, with the price tag amounting to more than $59 million dollars. Problems with the program and New York's economic climate led to more than a dozen compa- nies leaving the program in 2017. START-UP's bad reputation even led to an attempt by the Cuomo Administration to rebrand START-UP as the "Excelsior Business Program" in the 2017 executive budget proposal.
By repealing START-UP, the State of New York can take an important first step in working towards real economic opportunities by removing the "smoke-andmirrors" approach to job growth, and end the failed, discred- ited Albany policy of bureaucrats using taxpayer dollars to try and pick economic winners and losers. The money used for advertising this failed initiative could be better suited towards providing mandate or tax relief.
Legislative history
New bill.
Fiscal implications
Increased budget flexibility; program is supported with advertising money in the State budget.
Effective date
Immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.