Tax Exemptions vs. Tax Credits: What’s the Difference?
Tax Incentives can come in the form of tax credits or tax exemptions.
Tax credits reduce your taxes directly, dollar for dollar. After determining the total amount of tax owed, you can subtract the dollar value of the credits for which you are eligible.
For example, if you spend $100 on an energy-efficiency project, your business tax could be reduced by $100.
Tax exemptions reduce your sales and/or property tax liabilities.
For example, a company that builds or renovates a building may be exempt from paying sales tax on construction materials, mortgage recording tax, and/or could receive an abatement on the increase in assessment of the building due to renovation and construction.
Imagine Monroe does not offer tax credits. It will, however, connect business leaders to various agencies for the incentives that are best for their needs. The team prides themselves on being a “one-stop-shop” for working collaboratively with other agencies.
EXAMPLES OF INCENTIVES
Tax Incentives are also benefits that can be provided to a company in the form of programs, rebates, financial assistance, reduced tax rates and more.
- A business wants to add three new jobs next year, so Imagine Monroe can provide the business with an incentive to fulfill its goal of creating new jobs.
- Imagine Monroe can provide an incentive that helps equalize real property tax rates across states.
|Agency||Type of Incentive||Benefits|
|Imagine Monroe||Tax Exemptions|
|New York State||Tax Credits|
TYPES OF INCENTIVES
- Sales Tax Exemptions
- Mortgage Tax Exemptions
- Real Property Tax Abatements
- Tax-Exempt Bonds
Benefits of Tax Incentives
Imagine Monroe’s Tax Incentives help businesses save money, increase opportunities for investment, improve their products and services, and accelerate growth—at zero cost to taxpayers. Incentives come in the form of rebates, financial assistance, access to employment opportunities, real property tax abatements, mortgage tax exemptions and more.
Find out if your business is eligible.Contact us today!
Rebates & Tax Programs
The following rebate and tax programs are available for non-retail businesses purchasing equipment.
PROGRAM QUICK REFERENCE:
GreatRate offers businesses a rebate on interest paid on a bank loan or a lease in return for job creation. Business must purchase at least $50,000 in qualified equipment.Apply Now
GreatRebate offers businesses a rebate on capital investment in return for job creation. Business must purchase at least $50,000 in qualified equipment with cash.Apply Now
EquiPlus is used in conjunction with GreatRate and GreatRebate to exempt purchases from sales tax.Apply Now
Monroe Manufacturing Rewards
Monroe Manufacturing Rewards provides small manufacturing businesses with a rebate on qualified manufacturing equipment purchases.Apply Now
PILOT Tax Incentive Programs
Payment In Lieu Of Tax (PILOT) Programs are agreements that allow the qualified company to make tax payments on a sliding scale over time as they relate to the increase in assessment due to renovation and construction.
Tax abatement program offered through Imagine Monroe which abates the increase in property taxes over a 10-year period. In return, the applicant must increase jobs by 10% over a 3-year period.Apply Now
Tax abatement program offered through Imagine Monroe which abates the increase in property taxes over a 10-year period. To qualify for this program, an applicant must invest $15 million in the project and create a minimum of 100 new jobs.Apply Now
Tax abatement offered through Imagine Monroe which abates the increase in property taxes for projects for use by a college or university, or medical-related facility in which the 501(c)(3) leases from a for-profit entity.Apply Now
Tax abatement program offered through Imagine Monroe which abates the increase in property taxes over a 14-year period in return for a 10% increase in jobs, provided the building meets LEED certification.Apply Now
Tax abatement program for low-income or student housing in which PILOT payments are determined using a formula of gross rents collected, less utilities, times 10%.Apply Now
Startup & Small Business Programs
Small businesses make up 98 percent New York State businesses, and they employ more than half of New York’s private sector workforce. Imagine Monroe can connect business leaders with Empire State Development’s Small Business Division which supports the development and expansion of businesses–directing an array of programs and initiatives supporting small business growth and helping entrepreneurs maximize opportunities for success.
Imagine Monroe offers programs specifically designed to help startups and small businesses succeed, as well as support the innovation and technology that has enabled Monroe County to thrive for decades.
The Entrepreneurs Network (TEN)
An innovative program designed to provide Upstate New York entrepreneurs with significant hands-on exposure to, and interaction with, national and regional business experts and funding sources.Learn More
Procurement Technical Assistance Center (PTAC)
Monroe County Finger Lakes Procurement Technical Assistance Center provides free government contract counseling to assist small businesses in selling to the government and prime contractors. Services include:
- Assist with registrations and certifications
- Provide guidance on market analysis
- Develop bid match search profile
- Assist with solicitation review and bid preparation
SBA 504 Loan Program
Provides long-term financing for the purchase of land, buildings and equipment at a fixed-rate of interest often requiring just 10% equity. A program of the Monroe County Industrial Development Corporation.Request Information
Monroe Manufacturing Rewards
Provides small manufacturing businesses with a rebate on qualified manufacturing equipment purchases. A program of the Monroe County Industrial Development Corporation.Request Information
Revolving Loan Fund 50
Revolving Loan Fund 50 is a Monroe County Industrial Development Corporation (MCIDC) program that provides gap loan financing to Monroe County businesses which do not qualify for the SBA 504 Program. Funding is in conjunction with a bank/financial institution and will match the bank term up to 7 years.Request Information
Assistance for Projects
Imagine Monroe provides assistance to qualified applicants and projects through tax exemptions, real property tax abatements, mortgage tax exemptions, and access to lower interest rates through tax-exempt bond issues.
Assistance is available for acquiring, constructing, reconstructing, improving, maintaining, equipping and furnishing industrial, manufacturing, warehousing, commercial, research and recreational facilities.See Projects
New York State Tax Incentives
“With an overall GDP of $1.4 trillion, New York has the third largest economy in the country, and a larger economy than South Korea, Russia and Australia.”
The Excelsior Jobs Program
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.Learn More
START-UP NY helps new and expanding businesses through tax-based incentives and innovative academic partnerships. START-UP NY offers new and expanding businesses the opportunity to operate tax-free for 10 years on or near an eligible university or college campuses in New York State. Partnering with these schools gives businesses direct access to advanced research laboratories, development resources and experts in key industries.Learn More
The Empire State Jobs Retention Program
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.Learn More
The New Markets Tax Credit Program (“NMTC Program”)
The New Markets Tax Credit Program (“NMTC Program”) provides investment capital for operating companies and real estate development projects in order to foster job creation and community development in low-income communities throughout New York State.Learn More
New York State Governor’s Office of Motion Picture & Television Development
The New York State Governor’s Office of Motion Picture & Television Development (MPTV) offers film, television and commercial production and post-production tax credits for qualified expenditures in New York State; the states’ $420 million film incentive program is one of the best in the nation.
These tax credit programs continue to be the principal factor cited by productions when deciding to film and produce in New York, contributing billions of dollars to the state’s economy. The MPTV office helps productions navigate the landscape, serving as a liaison between production companies and city and local governments, state agencies, a network of statewide contacts, local film offices and professional location scouts and managers.
- 1,935 APPLICATIONS accepted to the NYS Film Tax Credit Program since 2011
- $23.2 BILLION spent by film & television productions in NYS since 2011
- 1,376,196 NEW HIRES created by film & television productions in NYS since 2011
How to Apply
Imagine Monroe offers financial assistance for for-profit, non-retail companies including sales and mortgage tax exemptions and real property tax abatements. We receive hundreds of applications from business owners interested in the benefits of our business tax incentives.
To apply, complete our online application form and provide the relevant documentation.
We look forward to hearing from you!Get Started