START-UP NY s tax-free incentive hits pandemic glitch
Employees forced to work from home hit with state tax bills as Legislature tries to fix
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COHOES One of Gov. Andrew Cuomo’s signature economic development programs has run into a pandemic-related tax problem.
Now in its seventh year, with just over 300 companies involved, the START-UP NY program was created amid great fanfare to encourage new businesses to set up in the state.
Under the program, start-ups that affiliate with a New York college or university get a 10-year exemption from state income taxes for their employees.
It was seen as a way to keep aspiring entrepreneurs in New York rather than see them leave for more business-friendly states or being drawn to major start-up hubs like Silicon Valley.