START-UP NY telecommunication services excise tax credit
Who is eligible?
You are entitled to this refundable credit if you or your business:
- is approved by Empire State Development to participate in the START-UP NY program and received a Form DTF-74, Certificate of Eligibility, from your campus sponsor;
- operates in a tax-free New York area;
- creates and maintains net new jobs; and
- meets the annual employment test.
How much is the credit?
- The credit is equal to the amount of excise tax paid by the approved business on telecommunication services imposed under Tax Law Article 9, section 186-e for services rendered within the tax-free New York area to the extent not deducted in computing taxable income.
- The excise tax must be passed through to the approved business on a separately stated bill from the telecommunication services provider.
Eligible taxpayers may claim the credit for ten consecutive tax years beginning with the tax year during which the business locates in a tax-free New York area.
- Form CT-640, START-UP NY Telecommunication Services Excise Tax Credit, and its instructions (for corporations); or
- Form IT-640, START-UP NY Telecommunication Services Excise Tax Credit, and its instructions (for all others).
To learn about other New York State tax credits available to businesses, see Business incentives.