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 (ESD) 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.
For more information about eligibility and the program's application process, visit Empire State Development: START-UP NY Program.
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)
- 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.