New York State Incentives

New York State has become the nation's leader in cutting taxes. Nearly all taxes in New York State have been cut, with substantial reductions achieved in business, estate, sales, property and personal income taxes. New York State now has one of the lowest corporate income tax rates in the Northeast.

In addition to lower taxes, New York offers a variety of incentives to companies expanding or relocating in the Empire State. These include:

• Investment Tax Credit (ITC). Businesses that create new jobs and make new investments in production property and equipment may qualify for tax credits of up to 10% of their eligible investment. New businesses may elect to receive a refund of certain credits, and all unused credits can be carried forward for 15 years.
• Research and Development Tax Credit. Investments in research and development facilities are eligible for a 9% corporate tax credit. Additional credits are available to encourage the creation and expansion of emerging technology businesses, including a three-year job creation credit of $1,000 per employee and a capital credit for investments in emerging technologies.
• Sales Tax Exemptions. New York State offers exemptions for purchases of production machinery and equipment, research and development property, and fuels/utilities used in manufacturing and R&D. Other exemptions may be available through local Industrial Development Agencies (IDA.) Download a list of IDAs.
• Real Property Tax Abatement. To encourage development, expansion, and improvement of commercial property, a 10-year property tax abatement is available to offset increased assessments due to improvements to business and commercial property.
• No Personal Property Tax. Unlike many other states, which tax both real property and personal property, property taxes in New York State are imposed on real property only. Personal property, whether tangible or intangible, is exempt from state and local taxes.
  

Empire Zone Tax Credits
New York State has designated 72 zones as Empire Zones (EZs), which offer a host of benefits. These include discounts on electricity, enhanced tax credits for investment and job creation, and additional sales and property tax exemptions.

For additional information, forms, and instructions for business tax incentives, visit New York Love Biz / Tax & Financial Incentives.

Single Sales Factor
Phases in a single sales factor (i.e., 100% receipts allocation) business allocation percentage for determining amount of corporate income subject to New York State tax.

• For taxable years beginning on/after January 1, 2006 and before January 1, 2007, prescribes an allocation formula of: 20% property; 20% payroll; 60% sales;
• For taxable years beginning on/after January 1, 2007 and before January 1, 2008, prescribes an allocation formula of: 10% property; 10% payroll; 80% sales; and
• For taxable years beginning on/after January 1, 2008, prescribes for a single sales factor allocation percentage.

For more information go to the Tax Department's Summary of Tax Provisions of the 2005-06 Budget.

New York State Tax Guide for New Businesses

National Grid Incentives

Energy Pricing Programs Empire Zone Rates Empire Zones Electric Pricing Discounts (SC-12) Gas Pricing Discounts

Energy Infrastructure Programs Capital Investment Incentive Industrial Building Redevelopment Brownfield Redevelopment Three Phase Power Incentive

Energy Pricing Programs

Empire Zone Rates
Through its Empire Zone Rider (EZR), National Grid offers businesses that locate or expand in a NYS designated Empire Zone, up to ten years of deep discounts on the delivery of incremental electricity and natural gas supply.

This program provides substantial discounts from standard electric delivery rates. The customer's actual discount depends on their service classification, delivery voltage and energy use profile. The main components of the discounted EZR electric bill are:

• A standard monthly customer charge ranging from $21.02 for a small commercial customer (customers with no demand) to $3,172 per month for a large industrial customer (customers that take service at transmission voltage), depending on service classification and delivery voltage
• A transmission delivery charge -- $1.89 per kW per month for demand metered customers
• A cost-based, distribution delivery charge ranging from $.00307 per kWh (3/10 of one cent per kWh) to .00705 per kWh (7/10 of one cent per kWh), depending on service classification and delivery voltage. There is no distribution delivery charge for customers taking service at sub-transmission (34.5 kV) or transmission voltage (115 kV)
• An electricity supply (generation) charge, which is a simple "pass through" of market-priced, electric generation costs. This generation charge is variable and can increase or decrease monthly with the market price of electricity supply. Customer can “shop” for this portion of their electric requirements. A list of qualified energy brokers and marketers can be found at http://www.nationalgridus.com/niagaramohawk/business/rates/4_elec_supply.asp.

Natural Gas Discounts
The EZR natural gas program offers discounts that range from 3 to 5 cents per therm, depending on service classification and consumption.

Minimum Qualifications
After obtaining local and state certification, customers are eligible for a full ten years of benefits on qualifying usage; the ten-year term begins with the first discounted bill. In order to access the discounted EZR rates, customers must become certified and contact National Grid within six months of locating or expanding in an Empire Zone.

All EZR discounts are applicable only to incremental (new to National Grid), permanent electric and gas load. New customers are eligible for discounts on their entire usage. Existing National Grid customers must increase their usage in order receive discounts, as follows:

• Electric demand metered customers must increase their demand (kW) by the lesser of 100 kW or 25 percent of existing demand
• Electric non-demand metered customers must increase their usage (kWh) by at least 25 percent.
• Existing natural gas customers must also exceed historical usage in order to qualify; small general service gas customers must exceed 280 therms per month.
• A change in ownership in and of itself does not qualify the customer for EZR discounts.
• All eligible energy use must be physically located within Empire Zone boundaries.
• Customers must remain current in their payments to National Grid.
• Customers who become “decertified” by New York State for whatever reason, will no longer receive the discount.

National Grid EZR Contact:
Bryan Archambault 315-428-6702

Contact Us for More Information

Electric Pricing Discounts (SC-12)
SC-12 is an umbrella program that covers the full range of competitive situations, including business attraction, business expansion and customer retention.

The program utilizes standardized discount schedules for customers who meet basic eligibility criteria. Generally, these discounts are administered as a 5-year, declining percentage discount to the energy (per kWh) charge. In addition, National Grid has the ability to individually negotiate SC-12 terms and conditions outside this standard structure in special cases—generally, situations involving extremely energy intensive customers or extremely large employers.

Eligibility for SC-12 is generally limited to manufacturing and certain service sector businesses such as wholesale trade, warehousing/storage, professional/scientific/technical services, and administrative/support services. Customer eligibility is driven by the North American Industry Classification System (NAICS), which is the new government standard for classifying businesses.
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SC-12 Growth Programs

• Business Attraction-This program offers discounts to prospective customers who are evaluating locations both inside and outside of National Grid's service territory. It is also open to new businesses considering a start-up of operations in the National Grid service territory. There are two levels of attraction discounts, the deeper of which is available to more energy intensive manufacturers, as defined in the tariff with specific NAICS code.
• Business Expansion-Our business expansion program is available to current National Grid customers (25 kW or larger) who are evaluating an expansion of their existing usage—either through physical expansion (i.e., increase in kW) or increased utilization (i.e., higher kWh usage). The customer's existing usage is "baselined," and discounts are applied above those historical levels of usage. Certain growth thresholds must be hit in order to qualify for discounts.
  

SC-12 Retention Programs

• Revitalization-This program is designed to retain large manufacturing facilities in danger of closure due to financial distress. In order to qualify for discounts, customers must provide detailed financial information that demonstrates financial distress, identify and implement non-energy cost savings, and develop a comprehensive revitalization plan that will return the company to profitability within the five-year discount period.
  
• Relocation-Open primarily to our larger industrial customers, this program offers discounts to prevent the relocation of manufacturing facilities to areas outside the National Grid service territory. In order to qualify, customers must demonstrate that they have an economically viable relocation alternative. And in recognition of the fact that electricity cost by itself is seldom the only factor driving a relocation challenge, the SC-12 discount must be part of a comprehensive competitiveness plan that includes public involvement in the form of state and/or local incentives or concessions.
  
  

Gas Pricing

National Grid, like all utilities, purchases natural gas in a competitive national market where prices rise and fall, depending on market conditions. The prices National Grid pays to purchase gas for customers are passed through to those customers, dollar for dollar. National Grid does not mark up those prices or make a profit from them.
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Energy Infrastructure Programs

Capital Investment Incentive *
The Capital Investment Incentive program provides grants to fund electric and natural gas improvements on National Grid owned or required natural gas and electric infrastructure for certain businesses projects that involve major capital investment in plant and equipment. Specifically this program supports business attraction or expansion projects located in the service territory of National Grid. The projects must demonstrate that they have not been able to secure sufficient funding through federal, state or local economic development programs.
Program Description for Capital Investment Incentives
Program Application (pdf)
Online Program Application

Industrial Building Redevelopment *
The Industrial Building Assistance program provides grants of up to $250,000 to building owners undertaking efforts to retrofit the electric and gas infrastructure required to convert these buildings to multi-tenant industrial use.
Program Description for Industrial Building Redevelopment
Program Application (pdf)
Online Program Application

Brownfield Redevelopment *
The Brownfield Redevelopment program provides grants to fund utility related infrastructure improvements and other costs necessary to progress the redevelopment of a brownfield site or vacant building.
Program Description for Brownfield Redevelopment
Program Application (pdf)
Online Program Application

Three Phase Power Incentive *
The 3-Phase Power Incentive program provides grants of up to $50,000 to help fund the extension of 3-phase electric service to eligible National Grid customers, whose growth at their current location is limited by the lack of 3-phase power to the site.
Program Description for Three Phase Power Incentives
Program Application (pdf)
Online Program Application

Local Incentives
Additional Programs