The State of New York and the IRS offer numerous tax credits, tax deductions and other incentives for small business.
Certain deductions are also available to employees who pay for job-related expenses.
Federal Tax Breaks
The American Recovery and Reinvestment Act provides tax incentives for business including:
- Work Opportunity tax credit. This newly-expanded credit adds returning veterans and “disconnected youth” to the list of new hires covered by the credit that businesses may claim.
- New Hire Credit for employers. This credit helps employers who hire and retain additional workers for a full year.
- Small Business Health Care Credit for Small Employers. This credit pays up to 35% of the cost of providing health insurance coverage for employees.
- Energy Efficiency and Renewable Energy Incentives. See what businesses can do to reap tax rewards.
- Net Operating Loss Carryback. Small businesses can offset losses by getting refunds on taxes paid up to five years ago.
- An expanded section 179 deduction and bonus depreciation deductions for investments in vehicles, equipment, and fixtures.
New York Tax Breaks
- The Excelsior Jobs Program encourages businesses to expand in and relocate to New York while maintaining strict accountability standards to guarantee that businesses deliver on job and investment commitments.
- The Employee Training Incentive Program provides refundable tax credits to New York State employers for procuring skills training that upgrades or improves the productivity of their employees. Businesses can also receive tax credits for approved internship programs that provide training in advanced technology.
- The Empire State Jobs Retention Program was created to provide financial incentives to retain strategic businesses and jobs that are at risk of leaving the state due to the impact on business operations from a natural disaster.
- The 2014-15 State Budget enacted the Economic Transformation Program 2014 (ETP) and gave the Empire State Development Corporation (ESD) responsibility for implementing a $32 million program for the purpose of promoting economic development initiatives in communities affected by the July 2014 closure of the four state facilities listed below.
- Hire a Veteran Credit
- Employment of persons with disabilities Tax Credit
- Workers with disabilities Tax Credit
- Urban Youth Jobs Program Credit
- Minimum Wage Reimbursement Credit
- QETC employment Credit