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.
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.
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 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.
Personal Property Tax: The State of New York and local governments do not levy a tax on personal property owned by businesses or individuals.
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 on designated areas 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.
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. On an annual basis, the REDCs collaborate with state agencies to recommend discretionary grants, Excelsior Jobs tax credits, and other incentives to support business attraction and expansion projects.
Local: Under the Relocation Employment and Assistance Program (REAP) 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 annual basis for 12 years. 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 current deadline for filing applications is June 30th, 2020.