New York State Excelsior Jobs Program
The Excelsior Jobs Program (Excelsior) is the successor credit and incentive program to the New York State Empire Zone Program, which expired in 2010. Excelsior’s intent is to provide incentives to businesses for job creation, financial investment and expansion in New York State.
The strategic industries that are eligible for Excelsior benefits are as follows:
- Scientific Research and Development
- Software Development
- Financial Services
- Back Office
- Music Production
- Entertainment Companies
- Other firms creating at least 300 net new jobs and investing at least $6 million
- Firms in strategic industries (except manufacturing) that make significant capital investment who retain at least 25 employees
- Manufacturing firms that make significant capital investment who retain at least 10 employees
Each of the targeted industries require different levels of job growth to qualify for benefits. For example, manufacturing companies are required to create a smaller amount of new jobs to qualify for benefits than a financial services company.
The four tax credits available through Excelsior include:
Excelsior Jobs Tax Credit
Provides a credit equal to 6.85% of gross wages for each new job created in New York State.
Excelsior Investment Tax Credit
The credit is equal to 2% of the cost basis for federal income tax purposes of a qualified investment.
Excelsior Research and Development Tax Credit
The credit is equal to 50% of the federal research and development tax credit not to exceed 3% of the current year research and development expenditures that occur in New York State.
Excelsior Real Property Tax Credit
The applicant needs to be designated a regionally significant project or be located in an investment zone to receive this credit. The benefit is for ten years. The credit is for up to 50% of eligible real property taxes in the first year. The credit is reduced 5% annually during the remainder of the benefit period.
The program and application process is administered through Empire State Development by completing the Consolidated Funding Application, which is a single application used not only for Excelsior, but many other Empire State Development grant and incentive programs. Once Excelsior certification is complete, annual reporting to Empire State Development is required to substantiate the committed employment growth, in order to receive the credit(s) allocation for each tax year. If your company is planning for an expansion and job growth, we can assist you with the application process and reporting requirements for this program. Call any one of our partners at 315-446-3600.