Long Island Innovation Hot Spot Program

The Long Island Innovation Hot Spot (Innovation Hot Spot) was created with a goal to support innovation within Long Island’s entrepreneurial ecosystem. We have been managing this program since 2015, and 55 companies have received generous benefits from our funding agency, NYSTAR (https://esd.ny.gov/certified-business-incubator ). However we are now in our last year and this program at LIHTI will end Dec 31, 2022.

Host Incubators of the Innovation Hot Spot include;

•                  The Long Island High Technology Incubator (www.LIHTI.net)

            •                   CEWIT Incubator (https://www.cewit.org/incubator/)

            •                   Advanced Energy Incubator (https://www.aertc.org/about/incubator.php)

•                  LaunchPad Long Island(www.launchpadli.com)

•                  Hofstra ideaHUb (https://www.hofstra.edu/entrepreneurship/ideahub.html)

•                  LISTnet & Digital Ballpark (https://listnet.org, https://digitalballpark.com )

We have contracted with New York State service providers (intellectual property attorneys, engineering, manufacturing, marketing, and website design firms), our “Consultants”, to offer services. Our programs offer Long Island ventures who have been certified as Innovation Hot Spot clients (“Clients”) access to funding for Client projects, and access to New York State tax credits. These benefits come from a generous award through the NYS Department of Economic Development (“NYSDED”) and managed by the Innovation Hot Spot. The venture must first be affiliated with dedicated incubation and entrepreneurial programs (through a Host Incubator), and must be certified for eligibility.

To be certified, ventures must: Provide documentation that;

1) the venture is in its first five (5) years of operation (7 years is acceptable for life sciences ventures),

2) a CEO endorsement letter (template available)

3) a letter from their host incubator manager certifying that the venture is in good standing.

Companies meeting the outlined criteria will be issued a letter from the Innovation Hot Spot certifying their eligibility as a Client and then they can work with their accountant to file their NYS taxes.

Benefit Type
Benefit
Benefit Period
Start Date
How to Claim
Sales Tax
4% credit or refund, incl. 3/8% sales tax in the MCTD
60 consecutive months
First full month after qualified entity enters program.
Form AU-11
Corporate Franchise Tax
Only subject to the fixed dollar minimum tax or allowed a subtraction modification.
5 years
First tax year business enters program.
Form CT-223

Innovation Hot Spot also offers supplement funding support. Consultants are reimbursed for services provided to Clients in the critical areas of intellectual property, engineering/manufacturing, and marketing/website services. A professional business service provider interested in becoming a Consultant should contact Anil Dhundale (see below) for further information.

The Long Island Innovation Hot Spot program will reimburse Consultants for some project costs for a Client. The Consultant must be in contract with the Innovation Hot Spot (LIHTI) in order to qualify for this program. Innovation Hot Spot will pay Consultants directly for 50% of the cost of specified consultancy services provided to an eligible Client, up to a maximum amount per year of

•             $15,000 for intellectual property legal services

•             $5,000 for manufacturing/engineering services

•             $5,000 for marketing/website services 

The Consultant and Client must have a written agreement for the balance of the project cost paid for by the Client. The maximum total amount a Client can receive is $25,000 per year total for all services. If the Consultant provides services to multiple Clients, the maximum total in payments allowed under the Agreement is $100,000 per year to the Consultant.

Contact us to learn how the Innovation Hot Spot Program can help you.

Anil Dhundale, PhD

Interim Executive Director, LIHTI

Anil.Dhundale@stonybrook.edu

631.444.8806