Innovation Hot Spot
The Program
Innovation Hot Spot is a program of NYSTAR (New York State Office of Science, Technology, and Research) designed to provide opportunities for early-stage companies to tap into regional support for growth and sustainability. There are ten Innovation Hot Spots across the state, of which the Capital Region is one. UAlbany is the lead entity for Innovate 518.
The incubators and accelerators that make up Innovate 518 offer a range of services including office space, coaching, mentoring, networking and access to tax incentives.
Benefits of Hot Spot Certification
These incentives provide up to five years of corporate tax exemptions in NYS in addition to sales tax refunds in New York State. The data collected through this program allows us to improve and build on the entrepreneurial ecosystem in our region, and attract new companies to the region.
Eligibility
Eligible companies meet the following criteria:
Enrolled and be in good standing with an affiliated Innovate 518 incubator or accelerator.
In the first five years of existence (seven years for life science companies)
Tech-focused (industry-agnostic)
In the formative stage of business growth:
Less than one $1 million in annual revenue or equity capital and/or;
In the prototyping/development phase or earlier and/or;
On a path towards sustainability and/or growth
The Application Process
Complete the Innovate 518 Hot Spot Benefits application and provide the required documentation.
The application collects your company information as well as limited financial information.
Your CEO will need to submit a CEO Endorsement letter.
You will also need to submit your articles of incorporation, to show that your company is in its first five years of operation.
When the application and supporting documents are received, your company will be issued a letter of certification and an unique identification number, which you will need to provide to your accountant.
We will notify Empire State Development/NYSTAR of your eligibility for tax benefits. You should work with your account to claim your benefits each year.
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Work with your accountant to complete and submit these forms with your tax return. You will need your unique identification number for the IT 223 form.
Tax Form IT 223 (personal income)
Tax Form NYS AU-AA (sales tax exception)
Tax Form CT 223 (Hot Spot deduction)
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How to Complete Your Economic Impact Letter
At the end of the year or the beginning of the new year, you will receive an economic impact letter to complete and sign in order to receive a renewed certification letter for the new calendar year. Watch our video below for how to complete this form!
