Long Island Innovation Hot Spot Program
The Long Island Innovation Hot Spot (Hot Spot) was created with one goal in mind: to help drive innovation within Long Island’s outstanding entrepreneurial ecosystem. The members of the Hot Spot include innovation and entrepreneurship assistance programs covering most of Long Island and provide robust support services for their portfolio companies, above and beyond allowing their companies access to the funding and state tax credits from this program. Hot Spot also provides incentives for Hot Spot partners to collaborate in offering additional services to their clients.
Hot Spot tax incentives are applicable to companies that have been certified for eligibility and are affiliated with dedicated incubation and entrepreneurial programs.
To be certified, ventures must complete the following steps:
- Provide a copy of their articles of organization or other suitable documentation demonstrating that the venture is in its first five (5) years of operation (7 years is acceptable for life sciences ventures).
- Provide a CEO endorsement letter (template available).
- Provide a copy of a signed letter from their host incubator manager certifying that the venture is in good standing with the incubator and indicating the date which the venture joined the incubator.
Companies meeting the outlined criteria will be issued a letter from the Innovation Hot Spot certifying their eligibility and then work with their accountant to file their NYS taxes.
How to Claim
4% credit or refund, incl. 3/8% sales tax in the MCTD
60 consecutive months
First full month after qualified entity enters program.
Corporate Franchise Tax
Only subject to the fixed dollar minimum tax or allowed a subtraction modification.
First tax year business enters program.
The Long Island Innovation Hot Spot program reimburses company expenses associated with:
- IP Protection: a startup company’s critical asset
- Engineering/Manufacturing: an integral strategic effort to transform from the lab to commercialization
- Marketing/Website: key but sometimes neglected step to drive business
- Cost sharing up to 50% of paid invoices, capped at $25, 000/year/ company
- Company must be a confirmed Innovation Hot Spot participant to be eligible for these benefits