Cuomo Unveils Tax Break Plan for Businesses On, Around SUNY Campuses

An initiative announced last week by Gov. Andrew Cuomo may give a ten-year tax break to new businesses that open on or in close proximity to SUNY campuses.

Under the potential program, known as "Tax-Free NY," such a business would be exempt from sales tax, property taxes, and business and corporate taxes for ten years. Cuomo said eligible businesses are those with a relationship to the university's academic mission; businesses that create new jobs or expand operations while maintaining existing jobs; and out-of-state businesses that relocate to New York. Employees of businesses that take advantage of the Tax-Free New York program would not have to pay income tax.

According to the Tax-Free NY website, not only would the Tax-Free New York program apply to businesses located on campuses, but also it would apply to business located within the range of 200,000 square feet adjacent to campuses. Cuomo said the initiative is especially critical in upstate New York, but will apply to all SUNY campuses in New York.

It requires legislative action to be adopted.

The full extent of what the Tax-Free NY program could mean for the Three Village community has not been widely discussed. Three Village Chamber of Commerce president Michael Ardolino could not be reached for comment.

Executive director David Hochman of the Business Incubator Association of New York State, of which Stony Brook's Long Island High Technology Incubator is a member, said the measure would benefit those companies who are ready to "'graduate' from a startup incubator and want to stay nearby but in larger and more permanent space."

"If adopted roughly as proposed, the zones could be a powerful tool to help the state's public and private universities build out a network of highly attractive university-related research parks," Hochman said in a statement. "... Without doubt, there is room for several more such developments on SUNY and independent campuses in other regions, and the proposed zones could accelerate developments that are currently moving slowly."

Stony Brook University President Samuel L. Stanley Jr. called the initiative Cuomo's "most important economic development initiative with SUNY." 

"The governor’s vision empowers business owners to capitalize on SUNY's unique assets to help create jobs, foster entrepreneurial initiatives, spark new business and strengthen industry in our local communities," Stanley said in a statement. "This is exactly what our business incubators have needed; it will undoubtedly help launch hundreds of new businesses on Long Island. We look forward to implementing the Tax-Free New York plan at Stony Brook, and working alongside the members of our business community so we can all grow and prosper."

SUNY Chancellor Nancy Zimpher lauded Cuomo's announcement, saying: "The Governor has said many times that SUNY is the economic engine for New York, and these new tax free zones will further our campus' ability to innovate, create jobs, and attract new companies through public private partnerships."

Editor's Note: This story has been updated to reflect the status of this project as a proposal that requires legislative action.