Tax Credits and Benefits

New York State Excelsior Jobs Program
Enacted June 23, 2010

The Excelsior Program replaces the Empire Zones Program as the primary economic development program in the State.

Companies operating in, or relocating to, the former Jamaica and JFK Empire Zones will be eligible for an additional State tax credit under the Excelsior Program. This extra credit would be equal to up to 150% of the eligible applicant’s local property taxes over a five year benefit period.   

For more information, write to excelsior@empire.state.ny.us
or call Greater Jamaica at 718-291-0282 and ask for the Business Services Group

 Excelsior Program Summary

Eligibility

• Excelsior is state-wide; applicants are not required to be within specially designated geographic zones to be eligible
   

• Program eligibility is limited to firms in one of six strategic business sectors; firms in those sectors with less than fifty employees must create a minimum number of new jobs that vary by sector:
   

  • Manufacturers - 25 new jobs

  • Agricultural businesses - 10 new jobs

  • Financial services data center/back office - 100 new jobs

  • An entity conducting technical research and development to improve product function, performance, reliability, or quality - 10 new jobs

  • Software developers - 10 new jobs

  • Distribution centers/back office operations - 150 net new jobs

• Firms within one of the six strategic sectors above with at least fifty full-time jobs and which can demonstrate that its benefit-cost ratio for program participation is at least 10:1 (wages and benefits to new employees plus capital investments divided by tax credits) are eligible to apply.
   

• A number of business sectors are ineligible:
   

  • personal services

  • utilities

  • retail

  • entertainment

  • gas and electric distribution or steam production associated with the production of electricity

  • non-profits

Credits

• Tax credits are offered for up to five years after program entry

• Jobs Tax Credit – $2,500 to $5,000 per job based on salary and benefit levels

• Investment Tax Credit – refundable, 2% of qualified investments

• R&D credit – 10% of the federal R&D credit that can be allocated to NYS

• Real Property Tax Credit – Businesses located within areas previously designated as Empire Zones or that are Regionally Significant Projects could claim an additional credit equal to 50% of their eligible real property taxes in year 1, phasing down to 10% in year 5

The job creation thresholds for designation as a Regionally Significant Project are:

• Manufacturers - 50 new jobs and significant capital investment

• Agricultural businesses - 20 new jobs and significant capital investment

• Financial services data centers, distribution centers or back office operations for either one – 300 new jobs and significant capital investment

• An entity operating mainly in research and development - 20 new jobs and significant capital investment

Recapture

If a certificate of eligibility for the Excelsior Program is revoked, the amount of credit claimed by the business prior to that revocation will be added back to income in the taxable year in which any such revocation becomes final.

GJDC Contact for More Information:
Aron Kurlander, 718.291.0282 x141
akurlander@gjdc.org