New York City is one of the most dynamic and exciting cities in the world, and it's also a fantastic place to start a small business. With a diverse and talented workforce, access to world-class resources, and a supportive business environment, the city offers a range of incentives to help entrepreneurs grow their businesses and thrive in the competitive market.

NYC Small Business Incentives

In this blog, we will explore the various incentives that New York City offers to small businesses and how these incentives can help entrepreneurs achieve their business goals.

Tax Incentives in New York

New York City provides various tax incentives to small businesses to promote job creation and economic growth in the city. Tax incentives include the following: 

1. Industrial and Commercial Abatement Program (ICAP)

One of the most notable tax incentives is the Industrial and Commercial Abatement Program (ICAP), which provides property tax abatements for up to 25 years to businesses that invest in industrial or commercial properties. The program offers a tax abatement of up to 100% for the first year and gradually decreases to 25% over the remaining years.

2. Commercial Revitalization Program (CRP)

Another tax incentive is the New York City Commercial Revitalization Program (CRP), which offers property tax abatements to businesses that make eligible improvements to their commercial properties. The program offers a tax abatement of up to 50% of the increase in assessed value resulting from the improvement for up to 14 years.

3. Commercial Expansion Program (CEP)

In addition, the New York City Department of Finance offers several tax credits, including the Commercial Expansion Program (CEP), which provides a tax credit of up to $20,000 for each new job created by a business in the city. The CEP is available to businesses in designated areas of the city, including Lower Manhattan, East Harlem, and the South Bronx.

4. Excelsior Jobs Program

New York also offers Excelsior Jobs Program to small businesses to promote job creation and economic growth in the state, which provides tax credits to businesses that create new jobs and make significant capital investments in the state. The program offers tax credits, exemptions, and reductions in state taxes, including corporate income tax, sales tax, and property tax.

5. Qualified Emerging Technology Company

Another tax incentive is the Qualified Emerging Technology Company (QETC) tax credit, which provides a tax credit of up to $250,000 per year to eligible small businesses that develop or manufacture innovative technologies in the state. The credit is available to businesses with less than $10 million in assets and fewer than 100 employees.

6. Research and Development Tax Credit

New York also offers a Research and Development Tax Credit, which provides a tax credit of up to 9% of qualifying R&D expenses. The credit is available to businesses of all sizes that conduct qualified research in the state.

Grants and Funding

New York City offers a variety of grants and funding opportunities for small businesses, particularly those in the technology and innovation sectors. The grants and funding incentives include the following: 

1. NYC Innovation Grant Fund

One of the most notable grant programs is the NYC Innovation Grant Fund, which provides funding of up to $1 million to small businesses and entrepreneurs developing innovative technologies in various sectors, including health care, transportation, and energy.

2. Lower Manhattan Development Corporation

Another grant program is the Lower Manhattan Development Corporation (LMDC) Small Business Grant Program, which provides grants of up to $100,000 to small businesses that were impacted by the events of Sept. 11, 2001. The program is designed to help small businesses recover from the economic impact of the attacks and revitalize the Lower Manhattan community.

3. New York City Economic Development Corporation

The New York City Economic Development Corporation (NYCEDC) also offers various funding opportunities, including the Industrial Developer Fund (IDF), which provides low-cost financing to developers building or renovating industrial facilities in the city. The IDF offers loans of up to $10 million with favorable terms and low-interest rates.

4. New York State Innovation Venture Capital Fund

Another notable funding program is the New York State Innovation Venture Capital Fund (NYSIVC), which provides funding to support the development of innovative technologies in various sectors, including life sciences, clean energy, and advanced manufacturing.

5. New York State Small Business Credit Initiative

Another funding program is the New York State Small Business Credit Initiative (SSBCI), which provides capital to small businesses in the state. The program offers loans, guarantees, and other forms of financing to eligible businesses with fewer than 500 employees.

6. New York State Energy Research and Development Authority

The New York State Energy Research and Development Authority (NYSERDA) offers various funding programs to support the development of clean energy technologies and products. These programs include the NY-Sun Initiative, which provides funding to support the development of solar energy projects in the state, and the Green Jobs - Green New York program, which provides financing to help businesses and homeowners make energy efficient upgrades to their properties.

Support Services

In addition to tax incentives and funding opportunities, New York City provides a range of support services to small businesses, including mentorship programs, business education courses, and networking events. The NYC Small Business Services (SBS) is a city agency that offers a range of services to help small businesses start, operate, and grow. Some of the services provided by SBS include:

• Business Courses and Workshops: SBS offers free and low-cost business education courses on various topics, including business planning, marketing, and financial management.
• Mentorship Programs: SBS offers several mentorship programs, including the Small Business Mentoring Program, which pairs small business owners with experienced mentors who provide guidance and advice.
• Networking Events: SBS hosts networking events to help small business owners connect with each other and with potential clients and customers.
• Financial Assistance: SBS provides assistance with obtaining loans and other forms of financing for small businesses.

In addition to SBDC, there are several other organizations and programs in New York that offer support services to small businesses, including the New York State Small Business Credit Initiative (SSBCI), which provides assistance with obtaining financing, and the New York State Minority and Women-owned Business Enterprise (MWBE) program, which provides assistance to businesses owned by minorities and women.

Wrapping Up

New York offers a range of incentives and programs to support small businesses, including tax incentives, funding opportunities, and support services. These incentives and programs can help small businesses to flourish and facilitate entrepreneurs to achieve their business goals. We hope this article will be helpful for you, good luck with your venture.