§ 39. Tax benefits for businesses located in tax-free NY areas and\nemployees of such businesses. (a) (1) Any business or owner of a\nbusiness in the case of a business taxed as a sole proprietorship,\npartnership or New York S corporation, that is located in a tax-free NY\narea approved pursuant to article twenty-one of the economic development\nlaw is eligible for the tax benefits described in this section. Unless\notherwise specified, such business or owner of such business shall be\neligible for these tax benefits for a period of ten consecutive taxable\nyears, commencing with the taxable year during which it locates in the\ntax-free NY area.\n (2) In order to be eligible for these tax benefits during any taxable\nyear, calendar quarter or sales tax quarter, such business must be\napproved to participate in the START-UP NY program, must operate at the\napproved location in the tax-free NY area, and must satisfy the\neligibility criteria specified in paragraph (b) of subdivision one of\nsection four hundred thirty-three of the economic development law.\n (b) Tax-free NY area elimination credit. Such business or the owner of\nsuch business shall be eligible for the tax-free NY area tax elimination\ncredit described in section forty of this article.\n (c-1) Excise tax on telecommunication services. Such business or owner\nof a business shall be eligible for a credit of the excise tax on\ntelecommunication services imposed by section one hundred eighty-six-e\nof this chapter that is passed through to such business, pursuant to the\nprovisions referenced in subdivision (k) of this section.\n (d) Metropolitan commuter transportation district mobility tax. If the\ntax-free NY area at which such business is located is within the\nmetropolitan commuter transportation district (MCTD), and such business\nis an employer engaged in business within the MCTD, the payroll expense\nof such business at such location within the tax-free NY area shall be\nexempt from the metropolitan commuter transportation district mobility\ntax imposed under article twenty-three of this chapter for forty\nconsecutive calendar quarters, commencing with the calendar quarter\nduring which the employer locates in the tax-free NY area within the\nMCTD. If the tax-free NY area at which such business is located is\nwithin the MCTD and the owner of such business is an individual who has\nnet earnings from self-employment at such location, such net earnings\nshall be exempt from the metropolitan commuter transportation district\nmobility tax imposed under article twenty-three of this chapter for ten\nconsecutive taxable years commencing with the taxable year during which\nthe business locates in the tax-free NY area.\n (e) To the extent specified, the wages of an individual who is an\nemployee of such business located within a tax-free NY area received\nfrom such business for employment in such tax-free NY area shall be\neligible for the benefits as provided in article twenty-two of this\nchapter, the New York city personal income tax as provided in article\nthirty of this chapter, the Yonkers city income tax as provided in\narticle thirty-A of this chapter, and the Yonkers earnings tax on\nnon-residents during the ten taxable year period for such business\nspecified in subdivision (a) of this section, provided the requirements\nof this subdivision are satisfied.\n (i) The individual when employed by such business must be engaged in\nwork performed exclusively at the location within the tax-free NY area\nduring the taxable year.\n (ii) The individual when employed by such business must be engaged in\nwork at the location of such business within the tax-free NY area for at\nleast one-half of the taxable year.\n (iii) Such business must be in compliance with the requirements set\nforth in subdivision (a) of this section.\n (iv) The individual must be employed by such business in a net new job\ncreated by such business in the tax-free NY area.\n (f) Sales and
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