Beginning in 2011, the state of New York is offering a new incentive program entitled New York Excelsior Jobs Program. According to Empire State Development, Excelsior is a targeted program, focusing on the growth and expansion of the high-tech and clean energy jobs.
The program hopes to provide job creation and investment incentives to firms in various industries including biotechnology, pharmaceutical, high-tech, clean-technology, green technology, financial services, agriculture and manufacturing.
Through Excelsior, firms may qualify for four different fully refundable tax credits that can be claimed over a five year period. These credits consist of:
- The Excelsior Jobs Tax Credit: A credit of up to $5,000 per new job to cover a portion of the associated payroll cost;
- The Excelsior Investment Tax Credit: Valued at two percent of qualified investments;
- The Excelsior Research and Development Tax Credit: A ten percent credit for new investments based on the Federal Research and Development credit;
- The Excelsior Real Property Tax Credit: Available to firms locating in certain distressed areas and to firms in targeted industries that meet higher employment and investment thresholds.
Due to issues surrounding the QETC Incentive, Excelsior is limited to firms making a substantial commitment to growth, either in employment or through investing significant capital in a New York facility. Moreover, determining qualification for the program can be difficult. For example, the Job Growth Track makes-up approximately 75% of the program and includes all firms in targeted industries creating new jobs in New York. The other 25% is set aside for the Investment Track firms who have at least 50 employees and make significant new capital investments in a New York facility and also meet a benefit-cost threshold.
This is where TRCG can help.
TRCG can help your company determine not only qualification for the Excelsior credits, but also guide you through the application process so that your business can obtain the best benefit possible. Our consultants have expertise in determining which activities qualify and ensuring accuracy and due diligence.