The New York Guide to State Tax Incentives

New York is rich in business resources. If you’re a current or aspiring business owner in New York State, you have access to dozens of business programs, including training opportunities, educational tools, loans, and tax incentives.

Quick Links

Below, we break down tax incentive programs the Empire State offers. Keep reading to discover over 30 state tax credits and incentives for businesses in every industry.

New York business tax incentives

Development and expansion incentives

1. Excelsior Jobs Program Tax Credit

New York State’s Excelsior Jobs Program incentivizes businesses to expand within or relocate to New York. Under the program, businesses can get up to five tax credits for creating new jobs and making capital investments.

Here are the available credits:

Excelsior Jobs Tax Credit: Gives businesses a tax credit of up to 6.85% of the wages paid for a new job created. The credit goes up to 7.5% of wages for new jobs created for qualified green projects or green CHIPS projects. (See which green business certifications to consider.)
Excelsior Investment Tax Credit: Gives businesses a credit equal to 2% of qualified investments in growth projects. The credit increases to 5% for qualified green projects or green CHIPS projects or for investments in child care services.
Excelsior Research and Development Tax Credit: Gives businesses a credit of 50% of the portion of the Federal Research and Development (R&D) tax credit that relates to expenditures in New York state, with a credit of up to 6% of research expenditures for activities conducted in New York. For a qualified green project or green CHIPS project, businesses can get a credit of 50% of the portion of the Federal R&D credit that relates to expenditures in New York and a credit of up to 8% of research expenditures for activities conducted in New York.
Excelsior Real Property Tax Credit: Gives businesses located in certain distressed areas of the state—and businesses in targeted industries—a credit for meeting higher employment and investment thresholds.
Excelsior Child Care Services Tax Credit: Gives businesses a credit of up to 6% of the cost of sponsoring or directly providing employees with a child care services program.

To be eligible for the program, your business needs to fall within one of the accepted industries. Each industry has to meet a different threshold for job creation and capital investments. Scientific research and development firms, for example, have to create at least five new jobs to qualify, while back office firms need to create at least 25 new jobs.

See the full list of eligible companies here.

2. START-UP NY Program

New York’s START-UP NY Program gives new and expanding businesses the chance to operate tax-free for 10 years on or near eligible university campuses in the state of New York. To qualify for the tax benefits, businesses must meet the below requirements:

Be either a new business in New York State or an existing 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

However, there are a multitude of businesses that aren’t allowed to apply for the program, including—but not limited to—retail and wholesale businesses, restaurants, medical practices, and banking businesses.

Learn more about the program and how to apply here.

3. Life Sciences Research and Development Tax Credit Program

The Life Sciences Research and Development (R&D) Tax Credit Program supports life sciences businesses locating to or developing within New York State. Qualified life sciences companies with 10 or more employees can get a credit equal to 15% of their qualified R&D expenditures in the state of New York; companies with fewer than 10 employees can get a 20% credit.

The maximum credit a business can get is $500,000 per year for three years, with a lifetime cap of $1.5 million. To be eligible for the program, a business must be a new business entity in the life sciences industry, which includes the following:

Agricultural biotechnology
Biogenerics
Bioinformatics
Biomedical engineering
Biopharmaceuticals
Academic medical centers
Biotechnology
Chemical synthesis
Chemistry technology
Medical diagnostics
Genomics
Medical image analysis
Marine biology
Medical devices
Medical nanotechnology
Natural product pharmaceuticals proteomics
Regenerative medicine
RNA interference
Stem cell research
Medical and neurological clinical trials
Health robotics
Veterinary science

Get more information and apply for the credit here.

4. Brownfield Redevelopment Tax Credit

New York businesses that take on a brownfield redevelopment project can qualify for the Brownfield Redevelopment Tax Credit. To be eligible, businesses need to get accepted into the Department of Conservation’s Brownfield Cleanup Program first.

The amount of credit is the sum of the site preparation, tangible property, and on-site groundwater remediation credit components. Find the credit application form here.

5. Rehabilitation of Historic Properties Credit

New York businesses can qualify for the Rehabilitation of Historic Properties Credit if they get a federal rehabilitation credit for restoring a New York-based certified historic structure. The project must be located within a census tract that’s at or below 100% of the state median family income.

The credit is equal to 100% of the federal rehabilitation credit amount for the business’s certified historic structure, not to exceed $5 million per structure. The federal credit is equal to 20% of a business’s qualified rehabilitation costs.

If a business has qualified rehabilitation expenses under $2.5 million, they can qualify for the credit equal to 150% of the federal rehabilitation credit. Learn more about the credit and how to apply here.

Employment incentives

6. Empire State Jobs Retention Program Tax Credit

The Empire State Jobs Retention Program is available to businesses at risk of leaving the state as a result of operational interruptions from a natural disaster. The program isn’t ongoing; it only becomes available when the governor declares a state of emergency following a crisis.

In that case, businesses accepted into the program can qualify for a tax credit equal to 6.85% of wages paid to each job they retain in New York State. Businesses in certain industries that meet the following requirements are eligible to apply for the program:

Located in a county that the governor has declared to be in an emergency state
Demonstrate that the emergency has caused substantial physical damage and economic harm to the business
Employ at least 100 employees in the county where the emergency has been declared, and retain or exceed that number of jobs in New York State

Only jobs that the business retains are eligible for the jobs retention credit. Get more additional information on the credit here.

Need help hiring? Check out these tips for hiring in New York.

7. Employee Training Incentive Program

New York’s Employee Training Incentive Program (ETIP) gives businesses tax credits for implementing employee training and internship programs in certain industries.

The credit for the employee training program is 50% of eligible training costs, up to $10,000 per employee receiving training. The credit for the internship program is 50% of the stipend paid to an intern, up to $3,000 per intern.

To qualify for the program, a business must submit an ETIP Consolidated Funding Application (CFA) and be accepted into the program. From there, businesses have to meet the below requirements to qualify for the incentives.

For the employee training program:

Businesses have to make a significant capital investment in an employee training program, one that results in a 10:1 benefit-cost ratio
Businesses must operate in a strategic industry that has the potential to create jobs in an economically distressed area; has a shortage of workers trained to work in that industry; and has the potential to recruit minorities and women to be trained to work in an industry where they are traditionally underrepresented.

For the internship program:

Businesses must offer internships in one of the following industries: advanced technology, life sciences, software development, or clean energy
Businesses must have fewer than 100 employees, and internships cannot displace regular employees
The internship cannot last longer than 12 months

Check here for more program eligibility rules and instructions on how to apply.

Plus, learn how to hire interns legally.

8. Empire State Apprenticeship Tax Credit

The Empire State Apprenticeship Tax Credit gives employers a credit for hiring qualified apprentices at their workplaces. The credit ranges from $2,000 to $7,000 per apprentice, depending on how many years the apprentice remains employed and whether or not the apprentice qualifies as a disadvantaged youth.

To qualify for the credit, a business needs to get certified by the New York State Department of Labor (DOL) in the Empire State Apprenticeship Tax Credit (ESATC) Program. Learn how to get certified here.

9. Credit for Employment of Persons with Disabilities

This credit is available to businesses that hire certain employees with disabilities. Eligible employees have to have received services from either the New York State Education Department’s Adult Career and Continuing Education Services-Vocational Rehabilitation (ACCES-VR) or the Office of Children and Family Services’ New York State Commission for the Blind (NYSCB).

The credit is 35% of the first $6,000 of qualified first-year wages or qualified second-year wages paid to employees. The maximum credit per employee is $2,100. Get additional information on the credit here.

10. Hire a Veteran Credit

Businesses in New York can get this tax credit for hiring veterans who began their employment between January 1, 2014, and January 1, 2025. Businesses need to have hired the veteran for a full 12 months, either for a part-time or full-time role.

If the veteran is disabled, the credit amount is 20% of the total wages paid to the veteran during their first 12-month period of employment. The maximum credit is $20,000 for a full-time position and $10,000 for a part-time position.

If the veteran is not disabled, the credit amount is 15% of the total wages paid to the veteran during their first 12-month period of employment, with a maximum credit of $15,000 for a full-time position and $7,500 for a part-time position.

Claim the credit here.

11. New York Youth Jobs Program Tax Credit

The New York Youth Jobs Program Tax Credit incentivizes businesses to hire qualified young people—ages 16 to 24—for open positions. Businesses can get tax credits upwards of $7,500 per eligible youth hired, depending on the employee’s school status and whether or not they’re hired part-time or full-time.

To qualify for the credit, businesses need to have a physical location in New York State and get certified to participate in the New York Youth Jobs Program. Learn more about the program here—and apply by November 30, 2025.

12. QETC Employment Credit

The QETC Employment Credit is designed to support qualified emerging technology companies (QETC) in New York State that increase their employment. The state defines a QETC as a company located in New York State that has total annual product sales of $10 million or less and meets either of the following criteria:

Has primary products or services that are classified as emerging technologies
Has R&D activities in New York State, and the ratio of R&D funds to net sales equals or exceeds the National Science Foundation (NSF) average ratio for all surveyed companies classified

The amount of credit is equal to the average number of full-time employees in New York State for the current tax year, minus the QETC’s base year employment number, multiplied by $1,000.

To qualify for the credit, a business must be considered a QETC and be able to demonstrate that the number of people they employ full-time in New York State is at least 101% of their base year employment number. Get more details on the credit here.

13. Recovery Tax Credit

Businesses can take the Recovery Tax Credit if they hire eligible individuals in recovery from a substance use disorder. The credit is equal to $1 for every hour the new hire works during the tax year, up to $2,000 per employee.

To qualify for the credit, businesses need to get certified by the New York State Office of Addiction Services and Supports (NYS OASAS) and hire an eligible individual in recovery to work a minimum of 500 hours. Download the form here.

14. Security Officers Training Tax Credit

New York’s Security Officers Training Tax Credit applies to building owners that employ qualified security officers. The credit is $3,000 for every qualified security officer hired. To qualify for the credit, a business needs to receive a certificate of tax credit from the New York State Division of Homeland Security and Emergency Services (DHSES).

Entertainment industry incentives

15. New York State Commercial Tax Credit Program

The New York State Commercial Tax Credit Program is available to qualified production companies that create commercials and incur expenses in New York State. The credit is equal to 20% of qualified production expenses under the Downstate component of the program and 30% under the Upstate component of the program.

Only advertisements recorded on film, audiotape, videotape, or digital medium for multi-market distribution via radio, television, motion picture theaters, or the internet are eligible for the program. That means film productions, TV shows, and the like are excluded.

Credit for Downstate requirements:

Production companies have to film or record their qualified commercials within the Metropolitan Commuter Transportation District (MCTD), which includes New York City, Dutchess, Nassau, Orange, Putnam, Rockland, Suffolk, and Westchester counties
Production companies have to spend more than $500,000 in total qualified costs within the MCTD during the calendar year

Keep in mind: the credit is 20% of qualified production costs over the $500,000 threshold.

Credit for Upstate requirements:

Production companies have to film or record their qualified commercials outside the MCTD but within New York State.
Production companies have to spend more than $100,000 in total qualified costs outside the MCTD during the calendar year

Applications for the credit are due April 1, 2025—find out how to apply here.

16. New York State Film Tax Credit Program (Production)

The state’s Film Production Tax Credit program rewards production companies for setting their film and TV projects in New York State. The credit is 30% of a company’s qualified production expenses incurred within New York.

Productions with a minimum budget of $500,000 are eligible for an additional 10% credit on qualified labor expenses in the following counties: Albany, Allegany, Broome, Cattaraugus, Cayuga, Chautauqua, Chemung, Chenango, Clinton, Columbia, Cortland, Delaware, Dutchess, Erie, Essex, Franklin, Fulton, Genesee, Greene, Hamilton, Herkimer, Jefferson, Lewis, Livingston, Madison, Monroe, Montgomery, Niagara, Oneida, Onondaga, Ontario, Orange, Orleans, Oswego, Otsego, Putnam, Rensselaer, Saratoga, Schenectady, Schoharie, Schuyler, Seneca, St. Lawrence, Steuben, Sullivan, Tioga, Tompkins, Ulster, Warren, Washington, Wayne, Wyoming, and Yates.

Feature films, TV series, TV pilots, films for TV, and certain relocated talk/variety television series and narrative TV series are eligible for the credit. Review this page for information on how to apply.

17. New York State Film Tax Credit Program (Post-Production)

New York’s Film Post-Production Tax Credit program gives qualified production companies a credit for incurring post-production expenses in New York State. The credit is 30% of a company’s qualified post-production expenses incurred within New York.

An additional 5% credit is available for costs incurred in Upstate New York outside the MCTD. Projects with budgets over $500,000 can receive an additional 10% credit on qualified labor expenses incurred in the following counties: Albany, Allegany, Broome, Cattaraugus, Cayuga, Chautauqua, Chemung, Chenango, Clinton, Columbia, Cortland, Delaware, Dutchess, Erie, Essex, Franklin, Fulton, Genesee, Greene, Hamilton, Herkimer, Jefferson, Lewis, Livingston, Madison, Monroe, Montgomery, Niagara, Oneida, Onondaga, Ontario, Orange, Orleans, Oswego, Otsego, Putnam, Rensselaer, Saratoga, Schenectady, Schoharie, Schuyler, Seneca, St. Lawrence, Steuben, Sullivan, Tioga, Tompkins, Ulster, Warren, Washington, Wayne, Wyoming, and Yates.

Feature films, TV series, relocated TV series, TV pilots, and films for TV are eligible to apply. Learn more about the program here.

18. New York City Musical and Theatrical Production Tax Credit

The New York City Musical and Theatrical Production Tax Credit gives New York City production facilities tax credits to help offset their production costs. The credit amount is 25% of qualified production expenses (up to $3 million per production) for a Level 1 qualified New York City production facility and 25% of qualified production expenses (up to $350,000 per production) for a Level 2 facility.

A Level 1 facility is a New York City live theatrical production facility in Manhattan in the area bounded by and including 41st Street, 54th Street, 6th Avenue, and 9th Avenue. The facility must contain 500 seats or more and get 75% or more of their gross receipts from live theatrical productions.

A Level 2 facility is a New York City live theatrical production facility in Manhattan that contains at least 100 seats and gets 75% or more of its gross receipts from live theatrical productions.

Find out how to apply here.

19. Empire State Musical and Theatrical Production Tax Credit Program

The Empire State Musical and Theatrical Production Tax Credit Program incentivizes musical and theatrical production companies to do pre-tour activities, technical rehearsals and shows in Upstate New York.

Qualified companies can receive a credit equal to 25% of certain production and transportation expenditures directly related to the technical period at a qualified facility in Upstate New York, including:

Pre-tour production costs for design, construction, and operation
All salaries, wages, fees, per-diems, and other compensation (not to exceed $200,000 per week)
Technical and crew production costs

Apply for the program here.

20. New York State Digital Game Development Program

The New York State Digital Game Development Program gives qualified digital game development studios tax credits to offset their production costs. Qualified studios can get a tax credit of 25% of qualified production costs in New York City and 35% of qualified production costs incurred outside of the MCTD.

To be eligible, production studios have to meet the following requirements:

Have a minimum of $100,000 total production costs
Qualified production costs must be at least 75% of all production costs
The project must begin on or after January 1, 2023

Apply for the program here.

Agricultural industry incentives

21. Farm Donations to Food Pantries Credit

Eligible farmers in New York State can get a tax credit for donating to eligible food pantries in New York. The amount of credit is 25% of the fair market value of the qualified donations made, not to exceed $5,000 per tax year.

Find out how to claim the credit here.

22. Farm Employer Overtime Credit

The Farm Employer Overtime Credit is available to farmers whose employees work overtime. The credit is 118% of the eligible overtime hours you or your business paid multiplied by the difference between the employees’ overtime rate of pay and their regular rate of pay.

See the overtime hour breakdown here, and learn how to claim the credit.

23. Farm Workforce Retention Credit

The Farm Workforce Retention Credit is available to farm employers with employees who’ve worked at least 500 hours. The amount of credit depends on the year the farm employee worked; it ranges from $250 to $1,200.

Claim the credit here.

Environmental sustainability incentives

24. Alternative Fuels and Electric Vehicle Recharging Property Credit

This credit is available to businesses that invest in electric vehicle recharging property or alternative field vehicle refueling property. The credit amount is equal to the lesser of $5,000 or 50% of the cost of property that is located in New York State and used 50% or more during the tax year in a trade or business carried on in New York State.

Apply for the credit here.

25. Clean Heating Fuel Credit

The Clean Heating Fuel Credit is available to businesses that purchase bioheating fuel for residential space heating or hot water production in New York State. If the bioheating fuel was purchased in 2017 or after, it must contain at least 6% biodiesel per gallon of bioheating fuel.

The credit is equal to one cent for each percent of biodiesel per gallon of bioheating fuel purchased before January 1, 2026, not to exceed 20 cents per gallon.

Get the forms to claim the credit here.

26. Conservation Easement Credit

The Conservation Easement Credit is available to New York businesses that own land subject to a conservation easement by a conservation agency. The credit is 25% of the school district, county, and town real property taxes paid during the current tax year on the land subject to the conservation easement, up to $5,000.

Keep in mind: the credit isn’t available to New York S corporations or S corp shareholders. Learn more about the credit and how to claim it here.

Industry-specific incentives

27. Alcoholic Beverage Production Credit

Businesses in New York that produce alcoholic beverages can qualify for the state’s Alcoholic Beverage Production Credit if they produce one of the following in a tax year: 60 million gallons of beer; 60 million gallons of cider; 20 million gallons of wine; or 800,000 gallons of liquor.

The amount of credit for the first 500,000 gallons produced in the state of New York is:

14 cents per gallon of beer or cider
30 cents per gallon of wine
$2.54 per gallon of liquor with an alcohol by volume (ABV) between 2-24%
$6.44 per gallon of liquor with more than 24% ABV

For alcoholic beverage production over 500,000 gallons, the credit is 4.5 cents per gallon, up to 15 million additional gallons for beer, cider, and wine, and up to 300,000 additional gallons for liquor.

Learn how to claim the credit here.

28. Manufacturer’s Real Property Tax Credit

The Manufacturer’s Real Property Tax Credit applies to qualified New York State manufacturers who paid real property taxes on property they own or lease. The property must be primarily used for one of the following activities: manufacturing, processing, assembling, refining, mining, extracting, farming, agriculture, horticulture, floriculture, viticulture, or commercial fishing.

The credit is equal to 20% of the eligible real property taxes a manufacturing business paid during the tax year. Get applicable forms for the credit here.

29. QETC Capital Tax Credit

New York businesses that invest in qualified emerging technology companies (QETCs) can get a credit equal to 10-20% of their investment amount.

To get the 10% credit, a business needs to certify to the Commissioner of Taxation and Finance that they won’t sell, transfer, trade, or dispose of their investment for four years. To get the 20% credit, a business needs to certify that they won’t sell, transfer, trade, or dispose of their investment for nine years.

Download the form here for more information.

30. Automated External Defibrillator Credit

Businesses in New York that bought an automated external defibrillator can qualify for a tax credit equal to $500 or the purchase of the unit, whichever is less. Claim the credit here.

General business incentives

31. Child Care Creation and Expansion Credit

Businesses in New York that created or expanded childcare opportunities for their employees between April 1, 2023, and January 1, 202,5 may be eligible for this credit. To qualify, businesses need to have either made new childcare spots available for their employees’ kids or expanded the number of spots open—directly or through a third party.

Businesses also need to apply for and receive a certificate of tax credit from the Office of Children and Family Services.

The credit amount is equal to the sum of:

The product of the number of infant child care seats that have been created or expanded and 20% of the child care rate for those seats; and
the product of the number of toddler child care seats that have been created or expanded and 20% of the child care rate for those seats.

Learn how to claim the credit here.

Curious about how to offer child care for your employees? Here’s a guide to getting started.

32. Commercial Security Credit

New York businesses that have implemented retail theft prevention measures can qualify for the state’s Commercial Security Credit. To be eligible, businesses need to have incurred retail theft prevention costs after January 1, 2024, and before January 1, 2026.

The credit amount is $3,000. Download the form to apply here.

33. Employer-Provided Child Care Credit

Businesses in New York that provide direct childcare for their employees or childcare resources and referrals can take a tax credit to offset expenses. The credit amount is 50% of qualified child care facility expenditures plus 20% of child care resource and referral expenditures, not to exceed $500,000 total.

Get more details on the credit here.

34. Long-Term Care Insurance Credit

This credit applies to businesses in New York that pay premiums for qualifying long-term care insurance policies. The credit is 20% of the premiums paid during the tax year.

Keep in mind: individual taxpayers can only claim the credit if their New York adjusted gross income is under $250,000; in that case, their credit won’t exceed $1,500.

Download the application forms here.

New York city and county tax credits

Many cities and counties in New York have their own business tax credits and incentives. New York City, for example, has a Biotechnology Tax Credit available to biotech companies that meet certain headcount, product sales, and R&D requirements.

Make sure you scour the business or economic development section of your city’s website to explore your options.

Financing for businesses in New York State

If your business needs upfront capital or flexible credit to grow, check out your state financing resources. Gusto’s guide to grants and loans in The Empire State is a great place to get started.