In 2013, New York State created the Innovation Hot Spot program to fund operations in business incubators and extend tax incentives to qualified ventures in participating incubators.
The Hudson Valley Venture Hub serves as the Innovation Hot Spot in the Hudson Valley economic development region, and can certify companies for eligibility.
Once qualified, a company enters into a five year window of exemption from state corporate income tax and state sales tax on purchases. In that period, partners in the company are also eligible to deduct their income from the incubator company. This window lasts for five years, regardless of company age when entering the program, provided the company remains in good standing as a resident or graduate of its incubator.
Review the READ ME FIRST file and contact us for next steps.
To be certified, companies must:
- Be enrolled and in good standing with the HV Venture Hub incubator
- In their first five years of operations (or seven years for life sciences ventures)
- In the formative stages of development (defined as one of the following):
- Still in the testing/development phase of of the product being produced
- Has raised less than $1M equity capital
- Has not yet earned profits from sales
Official NYS Forms:
- Innovation Hot Spot Technical Memorandum
Technical parts (likely for accountants). - Form it223
What you'll fill out and work with your accountant on.
