It has just been two weeks since the announcement of commercial tax-free zones in college campuses and surrounding areas in the state of New York state and already several high-tech business companies have begun approaching university officials to take advantage of the offer.
The qualified businesses that exist within or that shift near to the 64 campuses of the SUNY system as well as some private colleges will be exempted from paying income and property tax for up to 10 years.
The 'Tax-Free NY' initiative was introduced by Gov. Andrew Cuomo late last month as a way to create jobs and businesses in times of financial and employment instability and to end the perception that New York is one of the nation's highest-taxed states.
Assembly Speaker Sheldon Silver expects the initiative to be endorsed by the Legislature before the end of its session June 20.
Cuomo said that the initiative will allocate 3 million square feet of commercial space in private colleges.
"A half-dozen [SUNY] presidents already have said to me that [they've] heard from companies [they've] been talking to and this is of interest," said Nancy Zimpher, SUNY chancellor. "Not only can we attract businesses to our campuses, but once they come to our campuses or adjacent to our campuses they can give our students internship experiences that can actually help us train our students and [give companies] a good look at them as potential employees."
The governor said that the companies that would be granted these benefits would be selected by a commission whose composition is still to be decided. The commission would be primarily focusing on establishing startups, venture capital, new businesses from around the globe in areas attuned to the academics of the college.
"We think about technical training at our colleges as a vehicle for attracting business and industry," said Zimpher. She believes the governor's proposed tax-free zones, which would not be subject to property and income taxes, will further such connections between the academia and industry.
