Tech companies are struggling to find the funds to pay for the cost of building and operating new facilities and operating the technology they use.
The state is offering a tech tax break that could save companies $5.5 million a year, the New York Times reported Wednesday.
The technology tax break, known as a “tax credit,” is a special incentive offered by New York state to startups and small businesses that invest $5 million or more in research and development.
That amount can be reduced by up to $5 for every $1,000 of investment in the state’s Technology Innovation Fund, according to the Times.
Companies can apply for a tech credit after receiving a final tax break of $5 from the New Jersey Office of Technology Innovation and Development.
The tech credit, which is worth $1 million per company, is available to companies that are new to the state or companies that have more than 100 employees, including those in manufacturing, construction, agriculture and energy.
The incentive is targeted toward small, medium and large businesses, the Times reported.
The state’s tax credit will be used for up to 10 companies per fiscal year and lasts for up or 30 years.
New York’s tech tax credits are not available to corporations, partnerships or partnerships.
The tax credit is not tied to a specific state tax code, but can be used toward any New York tax code or tax bill that has been approved by the state legislature.
New Jersey is among several states that are offering tax credits, such as New Jersey’s $1 billion technology tax credit, to help startups build and operate new facilities, such at the University of New Jersey.