SPOTLIGHT PROGRAMS

Excelsior Jobs Program: One of New York State’s signature economic development incentive tools, this discretionary program provides fully refundable tax credits to companies in strategic industries that create jobs and make capital investments. The minimum number of new jobs needed to qualify for the program varies by industry. Excelsior Jobs is comprised of the following refundable tax credits.

• Jobs Tax Credit: A credit of up to 6.85% of wages per net new job to cover a portion of the associated payroll cost.
• Investment Tax Credit: Valued at up to 2% of qualified investments, or 5% for qualified investments in green projects, green CHIPS projects or childcare services.
• Research and Development Tax Credit: A credit of up to 50% of the Federal R&D credit up to 6% of research expenditures in New York State.
• Real Property Tax Credit: Available to companies locating in certain distressed areas and to Regionally Significant Projects - businesses in strategic industries that meet higher employment and investment thresholds.
• Childcare Services: A credit up to 6% of net new, annual childcare operating expenditures including qualified sponsorship or direct financial support of a childcare services program.

‍

Relocation Employment and Assistance Program (REAP): Under this program, New York City offers qualified businesses a tax credit against the city’s unincorporated business tax, general corporation tax, banking corporation tax, or utility tax. This as-of right incentive is valued at up to $3,000 per eligible employee share on an annual basis for 12 years if the project is located in a designated revitalization area. Projects located outside of these designated areas receive a tax credit of $1,000 per share. The credits are fully refundable for the first five years, and any unused credits from subsequent years may be carried forward for 5 years. The application deadline was extended to June 30, 2025.

‍

‍

‍

TAX CREDITS

Brownfield Cleanup Program (BCP): This program offers a refundable tax credit to support site cleanup and the redevelopment of qualifying brownfield sites.  Redevelopment credits may be increased depending on the cleanup level obtained and the site location.

‍

‍Life Sciences Tax Credit Program: The program is designed to support new life sciences businesses locating, inventing, commercializing, and producing in New York State. Qualified Life science companies may be eligible to receive a fully refundable tax credit based on qualified research and development expenditures in New York. The credit is 15% for companies that employ 10 or more and 20% for companies that employee fewer than 10. Qualified companies can claim up to a maximum award of $500,000 per year for 3 years.  In addition, the State has prioritized allocation of Excelsior and other program resources to life sciences projects.

‍

‍

‍

TAX EXEMPTIONS

Sales Tax Exemptions: Purchases of production machinery and equipment, property, materials used in manufacturing and/or R&D, and fuels/utilities used in manufacturing and R&D are statutorily exempt from sales tax. Local Industrial Development Agencies (IDAs) have the discretionary authority to provide a 100% exemption of state and local sales tax to assist economic development projects.

In addition, State law enables the creation of Industrial Development Agencies (IDAs) which are empowered to incentivize projects by conferring a full or partial exemption from State sales tax on construction material and equipment, from Mortgage Recording Tax and from local property tax (through the establishment of a Payment-in-Lieu of Tax (PILOT). IDAs have been established in most New York counties (the NYC IDA covers the entire City), many of which are highly active. All such incentives are discretionary and require a determination that the project would not go forward “but for” the requested incentives.

‍

‍

‍

DIRECT FINANCIAL ASSISTANCE

Business Expansion & Retention Grants: Empire State Development (ESD) provides discretionary grants to support business attraction, expansion and retention projects.  The specific amount of the grant will depend on several factors including the level of capital investment, the number of jobs created and/or retained, the industry and nature of the operations at the project site, project wages and the location of the project.‍

‍

START-UP NY: This program establishes “tax-free” zones in designated areas within or near the propoerty of public universities, community colleges, and technical schools affiliated with the State University of New York (SUNY) as well as a select number of private universities.  While this program is active across New York State, there is a particular focus on spearheading job creation and private sector investment on or near college campuses in Upstate New York.  Startup businesses and early-stage companies that expand in or relocate to New York and partner with a college or university may qualify for a 10-year exemption on state corporate income taxes.  Employees that work at an approved business are exempt from all state personal income taxes for the first 5 years of the 10-year program.  Beginning in year 6 and ending in the 10th year of the program, personal income taxes on the first $200,000 of annual income earned ($250,000 for a head of household, and $300,000 for taxpayers filing a joint return) are exempt. Applications must be filed by December 31, 2025.

‍

‍

‍

JOB TRAINING

Employee Training Incentive Program: Eligible entities making significant capital investment may qualify for employee training benefits. The program provides refundable tax credits to employers for skills training that upgrades or improves productivity for their employees. A credit of 50% of eligible training costs, capped at $10,000 per employee, is available for current or new employees. Credits may also be earned under the internship program, with a credit of 50% of the stipend paid to an intern with a cap of $3,000 per intern available under this program.

‍

‍

LOCAL INCENTIVES

Regional Economic Development Councils:  New York is divided into 10 economic development regions with each region comprised of its own Regional Economic Development Council (REDC).  These councils are each led by board members appointed by the governor to formulate economic development strategies for their respective regions. To provide opportunities for all regional to participate in economic development funding, o the REDCs conduct an annual RFP process to recommend discretionary grants and other incentives to support business attraction and expansion projects.  However, competitive site selection projects are considered on a separate project-specific timeline and are not subject to the annual REDC RFP process, although the applicable REDC is consulted on all major projects.

‍

‍

‍

Last Updated: August 2023