ALBANY, N.Y. (AP) – Companies last year created 76 of the nearly 2,100 new jobs promised over five years in return for tax breaks under the Cuomo administration’s Start-Up NY program, according to the state agency responsible for economic development across New York.
Thirty companies began operating in 2014 among 54 initially approved for the program, the Department of Economic Development reported. They made $1.7 million of some $91 million investments promised over five years.
Those companies reported using $56,560 in tax credits last year.
“The tax implications to the companies and cost to New York State for 2014 demonstrate that the program is in its early stages,” Department Commissioner Howard Zemsky wrote. “The majority of the approved companies in 2014 were approved in the second half of the year, so most tax benefits will begin accruing in 2015.”
They are required to have six months in the program to qualify for exemptions from state income and other business or franchise taxes, the department said. Employees get a personal state income tax exemption after they’re employed full time for six months.
The program last year established 356 tax-free zones at 62 colleges and universities that act as sponsors, including most of the state’s public schools and 15 private colleges and universities, the report said. Four more have been approved this year, with 17 applications pending.
The agency reported another 26 businesses have been approved so far this year, while 12 have withdrawn applications. The largest group of approved companies is 37 in Buffalo and western New York. Another 15 are on Long Island, seven in New York City and seven in the Southern Tier.
Industries participating in the program range from biotechnology and other research and development to pharmaceutical and electrical component manufacturing.
The report said the approved businesses are consistent with the strategies of the colleges and universities including research and development, advanced manufacturing and information technology.