Darren McGee

President David Skorton addresses New York Gov. Andrew Cuomo's "Tax-Free NY" summit on June 3 in Albany.

To spur business development for upstate New York, Gov. Andrew Cuomo has proposed a “Tax-Free NY” initiative – which aims to create business-friendly zones around SUNY colleges and private universities. On June 3, Cornell President David Skorton addressed the Tax-Free NY summit of college presidents and regional economic development councils in Albany.

“Perhaps the greatest contribution that New York’s colleges and universities make to economic development in the state is through the students we educate for the jobs of today and as you’re seeing here, the jobs of tomorrow – and that will continue to be a critical role,” said Skorton.

Colleges and universities have had success moving research to the marketplace. “Cornell research, for example, has led to the development of 17 startup companies the last two years,” Skorton said.

Darren McGee

Cuomo, left, and Skorton share ideas on enticing business for upstate New York at the Tax-Free NY summit on June 3.

The proposed Tax-Free NY program is designed to entice companies to invest in upstate New York by offering new businesses an opportunity to operate completely tax-free: This means no state income tax for employees; and no sales, property or business taxes for a decade, while partnering with public and private higher education institutions.

Companies with a relationship to college and university academic missions, new businesses, out-of-state businesses that relocate to New York, and existing businesses that expand their New York operations while maintaining their existing jobs would be eligible for Tax-Free NY. The governor’s proposal would need to be introduced into the Legislature and passed into law.

Cuomo wants to make upstate New York a leader in the innovation economy and to reverse current trends where upstate severely lags, compared to national economic progress.

Skorton told the group: “I recognize that many of us in higher education – in the public and private side – do not normally focus on economic development when we describe our core institutional missions. Economic development puts some of us outside of our comfort zone, but this needs to be our comfort zone going forward.

Darren McGee

Cuomo and Skorton talk at the Tax-Free NY summit on June 3.

“We need to innovate. We need to help our regional economies grow. And in order to be competitive globally, we need to focus both on innovation in the classroom and on innovations that drive our economy and the world.”

Skorton commended Cuomo for his willingness to take on two challenges that will be critical to New York’s success: appropriating funds for higher education in New York and reducing barriers to university-industry collaboration. “This sweeping program will give all of us in higher education in New York powerful new tools that no other state in the country can match,” Skorton said.

The full afternoon program included a presentation from Greg Galvin, MS ’82, Ph.D. ’84, MBA ’93, chief executive officer of Kionix and a Cornell Trustee, who spoke about bringing Cornell technology to the marketplace; and Cornell Trustee Robert Langer ’70, the David H. Koch Institute Professor, Massachusetts Institute of Technology, who provided the summit’s keynote address.