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START-UP NY Sales Tax Information

Approved businesses

Business that participate in the START-UP NY program can claim a refund or credit of any sales or use tax paid on their purchases of tangible personal property, utility services, and certain taxable services. This includes New York State, MCTD, and local sales and use taxes.

Contractors providing services to approved businesses

In addition, contractors, subcontractors, and repairmen can claim a refund or credit of any sales or use taxes paid on purchases of tangible personal property used in:

  • erecting a structure or building for approved businesses at their locations in tax-free NY areas; or
  • adding to, altering, improving, maintaining, servicing, or repairing real property, property, or land of approved businesses at their locations in tax-free NY areas.

In order to claim a refund or credit, the tangible personal property must become an integral component part of the approved business's structure, building, real property, property, or land.

To claim the refund or credit, business owners and contractors should use Form AU-11, Application for Credit or Refund of Sales or Use Tax, and attach a copy of Form STR-1, START-UP NY Sales Tax and Real Property Transfer Taxes Benefits Certificate.  The credit or refund is allowed for 120 consecutive months beginning on the eligibility date shown on Form STR-1.

Updated: