START-UP NY at NYU
NYU's Incubator programs have been designated as tax-free areas through the New York State program called START-UP NY which provides tax benefits to companies who create new jobs annually. Businesses that are accepted into NYU's incubators can apply to the START-UP NY program. Please note that a company must first be accepted into NYU's incubators before seeking acceptance into the START-UP NY program at NYU.
If you are interested in applying for this program, please review NYU's Campus Plan and Conflict of Interest Policy prior to submitting an application. Applications are reviewed on a rolling basis as space becomes available in our incubators.
NYU has designated incubator space located at 370 Jay Street in New York County. In order to be sponsored by NYU for the START-UP NY program, businesses must first be accepted into one of its incubators - either the Data Future Lab, the Digital Future Lab, or ACRE.
You can apply here and select the incubator you're interested in. A staff member from the incubator will contact you in the coming weeks if we are interested in continuing the application process with your company. Once you are close to acceptance at the incubator, we can begin the process of applying through New York State for START-UP NY, which is a separate application process to the one above.
A few things to keep in mind:
1.) It's a 10-year program, but the maximum you can be in NYU's Tax-Free Area is 2 years. Afterwards, you will need to find another Start Up NY Tax Free Area outside NYU in order to keep your benefits. You can view additional spaces in the program on the START-UP NY website.
2.) You have to be creating new jobs each year, and they have to be a majority "High Tech" jobs, such as developers and engineers.
3.) Current employees of your company will not be eligible for benefits. It will only be for new employees you hire, and they are not eligible until they have been with the company for six months.
4.) You have to either be:
a - "in the development of high technology", meaning developing some kind of proprietary technology that you are working on in the tax-free area, or
b - "in the formative stage of development", which the State defines as being i. in the testing or market evaluation phase of your product, ii. raised less than $1 million in equity capital, iii. not a publicly traded entity, iv. not receiving profits from sales, and v. have been formed or incorporated for five years or less.
5.) If you are accepted into the incubator, you cannot physically locate there until you are accepted into Start Up NY. This can take an additional 3-4 months after acceptance into the incubator.
6.) After you are accepted into Start Up NY, you must then physically locate into the incubator to receive tax benefits. You cannot operate in a separate space, even if it is adjacent to the University. The only designated Start Up NY spaces are at our three incubators.
To participate in START-UP NY, your company must meet the following requirements:
- Be a new business in New York State, or an existing New York business relocating to or expanding within the state
- Partner with a New York State college or university
- Create new jobs and contribute to the economic development of the local community
List of Ineligible Businesses
- Retail and wholesale businesses
- Law and accounting firms
- Medical or dental practices
- Real estate management companies/brokers
- Retail banking
- Utilities and energy production
- Finance and financial services
- Businesses providing personal services
- Businesses providing business administration support and services
START-UP NY is also available to qualified international companies interested in relocating, expanding or starting a business in New York State. To learn more, visit Global NY.
Learn more at START-UP NY