The NYS INNOVATION HOT SPOT PROGRAM is available to new businesses in the formative stages of development. An innovation hot spot is a designation granted to a New York State incubator and must be affiliated with and have the support of at least one college, university, or independent research institution.

 

A qualified entity means a business enterprise that is in the formative stages of development and is located in NYS. It must be certified by a NYS innovation hot spot as being approved to locate in, or be a part of a virtual incubation program operated by that innovation hot spot.

 

A corporation franchise tax benefit and, under certain circumstances, a personal income tax benefit is allowed for five tax years. Depending on the business's tax filing status, a corporation franchise or a personal income tax benefit is allowed.

 

A qualified entity is eligible for a credit or refund of the 4% state sales and use tax and the 3/8% tax imposed by the state in the Metropolitan Commuter Transportation District on the purchase of tangible personal property, certain utility services, and other taxable services. The credit or refund will be allowed for 60 months beginning with the first full month after the qualified entity becomes.

 

LIST OF FORMS NECESSARY FOR CLAIMING BENEFITS UNDER THE START-UP NY AND NYS INNOVATION HOT SPOT PROGRAM

FORMS FOR NYS INNOVATION HOT SPOT PROGRAM

CT-223 - Innovation Hot Spot Deduction - This NYS Tax Department form must be filed by a corporation who is a qualified entity located both inside and outside a hot spot or if you are a corporate partner of a qualified entity. If the qualified entity is located entirely within the Hot Spot, it does not need to file this form. However, the qualified entity must indicate on its franchise tax return that it is located entirely within the hotspot.

IT-223 - Innovation Hot Spot Deduction - This NYS Tax Department form must be filed if you are an individual, partnership or fiduciary who is a qualified entity. In addition, this form is filed by individual partners, members, or shareholders of qualified entities.