N.Y. Tax Law § 38: New York innovation hot spot program tax benefits

* § 38. New York innovation hot spot program tax benefits. (a) As used

in this chapter, the terms "New York state innovation hot spot" and

"qualified entity" shall have the same meaning as under section

sixteen-v of the New York state urban development corporation act.

(b) A taxpayer under article nine-A of this chapter that is a

qualified entity of a New York state innovation hot spot shall be

subject only to the fixed dollar minimum tax, imposed under paragraph

(d) of subdivision one of section two hundred ten of this chapter, for

five taxable years, beginning with the first taxable year during which

the qualified entity becomes a tenant in or part of an innovation hot

spot. A taxpayer under article nine-A of this chapter that is a

corporate partner in a qualified entity, or is a qualified entity that

is located both within and without an innovation hot spot, shall be

allowed only a deduction for the amount of income or gain included in

its federal taxable income to the extent that the income or gain is

attributable to the operations at or as part of the innovation hot spot.

The deduction is allowed for five taxable years, beginning with the

first taxable year during which the qualified entity becomes a tenant in

or part of an innovation hot spot.

(c) An individual who is the sole proprietor of a qualified entity or

a member of a limited liability company, a partner in a partnership or a

shareholder in a New York subchapter S corporation where the limited

liability company, partnership, or S corporation is a qualified entity,

that is taxable under article twenty-two of this chapter shall be

allowed a deduction for the amount of income or gain included in its

federal adjusted gross income to the extent that the income or gain is

attributable to the operations of a qualified entity at or as a part of

a New York state innovation hot spot. The deduction is allowed for five

taxable years, beginning with the first taxable year during which the

qualified entity becomes a tenant in or part of an innovation hot spot.

(d) A qualified entity that is a tenant in or part of a New York state

innovation hot spot shall be eligible for a credit or refund for sales

and use taxes imposed on the retail sale of tangible personal property

or services under subdivisions (a), (b), and (c) of section eleven

hundred five and section eleven hundred ten of this chapter. The credit

or refund shall be allowed for sixty months beginning with the first

full month after the qualified entity becomes a tenant in an incubator

hot spot.

(e) A taxpayer who claims any of the tax benefits described in this

section is no longer eligible for any other New York state exemptions,

deductions, or credit or refunds under this chapter to the extent that

any such exemption, deduction, credit or refund is attributable to the

business operations of a tenant in or as part of the New York state

innovation hot spot. The election to claim the tax benefits described in

this section is not revocable.

(f) Cross-references. For application of the tax benefits provided for

in this section, see the following provisions of this chapter:

(i) Article 9-A, section 208, subdivision (9), paragraph (a),

subparagraph (18).

(ii) Article 9-A, section 209, subdivision 11.

(iii) Article 22, section 612, subsection (c), paragraph (39).

(iv) Article 28, section 1119, subdivision (d).

* NB There are 2 § 38's