2023 New York Laws › COM - Economic Development Law › Article 17 - Excelsior Jobs Program Act › 355 - Excelsior Jobs Program Credit.

§  355.  Excelsior  jobs  program credit. 1. Excelsior jobs tax credit
component. A participant in the excelsior jobs program shall be eligible
to claim a credit for each net new job it creates in New York state.  In
a project that is not a green project, the amount of such credit per job
shall  be  equal  to  the product of the gross wages paid and up to 6.85
percent. In a green project, or a Green CHIPS  project,  the  amount  of
such  credit  per  job  shall be equal to the product of the gross wages
paid  and  up   to   7.5   percent.   Provided,   however,   given   the
transformational  nature  of  Green  CHIPS  projects, only the first two
hundred thousand dollars of gross wages per job shall  be  eligible  for
this credit. The maximum amount of gross wages per job for a Green CHIPS
project  may be adjusted for inflation at an annual amount determined by
the commissioner in a manner substantially similar to the cost of living
adjustments  calculated   by   the   United   States   Social   Security
Administration  based  on changes in consumer price indices or a rate of
four percent per year, whichever is higher.
2. Excelsior investment tax credit component.  A  participant  in  the
excelsior  jobs program shall be eligible to claim a credit on qualified
investments. In a project that is not a green project, the credit  shall
be  equal  to  two percent of the cost or other basis for federal income
tax purposes of the qualified investment. In a green project, the credit
shall be equal to five percent of the cost or other  basis  for  federal
income  tax purposes of the qualified investment. In a project for child
care services or a Green CHIPS project, the credit shall be up  to  five
percent  of  the  cost or other basis for federal income tax purposes of
the qualified investment in child care services or in  the  Green  CHIPS
project  as  applicable.  A participant may not claim both the excelsior
investment tax credit component and the investment tax credit set  forth
in  subdivision  one  of  section  two  hundred ten-B, subsection (a) of
section six hundred six, the former subsection (i) of  section  fourteen
hundred  fifty-six, or subdivision (q) of section fifteen hundred eleven
of the tax law for the same property in any taxable year, except that  a
participant may claim both the excelsior investment tax credit component
and  the investment tax credit for research and development property. In
addition, a taxpayer who or which is qualified to  claim  the  excelsior
investment  tax  credit  component  and  is  also qualified to claim the
brownfield tangible property credit component under  section  twenty-one
of  the  tax  law  may  claim either the excelsior investment tax credit
component or such tangible property credit component, but not both  with
regard  to  a  particular piece of property. A credit may not be claimed
until a business enterprise has received a certificate  of  tax  credit,
provided that qualified investments made on or after the issuance of the
certificate of eligibility but before the issuance of the certificate of
tax  credit  to  the  business  enterprise,  may be claimed in the first
taxable year for which the business enterprise is allowed to  claim  the
credit.   Expenses  incurred  prior  to  the  date  the  certificate  of
eligibility is issued are not eligible to be included in the calculation
of the credit.
2-a. Excelsior child care services tax credit component. A participant
in the excelsior jobs program shall be eligible to claim a credit on its
net new child care services expenditures for its operation,  sponsorship
or direct financial support of a child care services program. The credit
shall  be  up  to  six  percent  of  the  net  new  child  care services
expenditures as defined in this chapter.
3.  Excelsior  research  and  development  tax  credit  component.   A
participant  in  the excelsior jobs program shall be eligible to claim a
credit equal to fifty  percent  of  the  portion  of  the  participant's
federal  research  and  development  tax  credit  that  relates  to  the

participant's research and development expenditures in  New  York  state
during  the  taxable year; provided however, if not a green project, the
excelsior research and development  tax  credit  shall  not  exceed  six
percent   of   the   qualified  research  and  development  expenditures
attributable to activities conducted in New York state, or, if  a  green
project or a Green CHIPS project, the excelsior research and development
tax   credit  shall  not  exceed  eight  percent  of  the  research  and
development expenditures attributable to  activities  conducted  in  New
York  state. If the federal research and development credit has expired,
then the research and development expenditures relating to  the  federal
research  and  development  credit shall be calculated as if the federal
research and development credit structure and definition  in  effect  in
two  thousand  nine  were  still  in  effect.  Notwithstanding any other
provision of this chapter to  the  contrary,  research  and  development
expenditures  in  this state, including salary or wage expenses for jobs
related to research and development activities in  this  state,  may  be
used  as the basis for the excelsior research and development tax credit
component and the  qualified  emerging  technology  company  facilities,
operations and training credit under the tax law.
4.  Excelsior real property tax credit component. (a) A participant in
the  excelsior  jobs  program  who  either  qualified  as  a  regionally
significant  project  or  is  located  in  an  investment  zone shall be
eligible to claim a credit for a period of ten years.
(b) The credit in year one shall be equal  to  fifty  percent  of  the
eligible  real  property  taxes  on  the  real  property  comprising the
regionally significant project or located in the investment zone. In the
remaining years the credit shall be computed according to the  following
schedule:
Year  two:  forty-five  percent of eligible real property taxes on the
real property comprising the regionally significant project  or  located
in the investment zone;
Year  three: forty percent of eligible real property taxes on the real
property comprising the regionally significant project or located in the
investment zone;
Year four: thirty-five percent of eligible real property taxes on real
property comprising the regionally significant project or located in the
investment zone;
Year five: thirty percent of eligible real property taxes on the  real
property comprising the regionally significant project or located in the
investment zone;
Year  six:  twenty-five percent of eligible real property taxes on the
real property comprising the regionally significant project  or  located
in the investment zone;
Year seven: twenty percent of eligible real property taxes on the real
property comprising the regionally significant project or located in the
investment zone;
Year  eight:  fifteen  percent  of eligible real property taxes on the
real property comprising the regionally significant project  or  located
in the investment zone;
Year  nine:  ten  percent  of eligible real property taxes on the real
property comprising the regionally significant project or located in the
investment zone; and
Year ten: five percent of eligible real property  taxes  on  the  real
property comprising the regionally significant project or located in the
investment zone.
(c)  For  purposes  of  this  credit, the term "eligible real property
taxes" shall have the same meaning as  in  subdivision  (e)  of  section
fifteen of the tax law, provided that such subdivision (e) shall be read

as  if  it  specifically  referenced  the  excelsior  jobs  program  and
participants in that program.
(d)  In  calculating  the  excelsior  real  property  tax  credit  and
determining the maximum aggregate amount of such credit component in the
preliminary schedule of benefits, the  commissioner  shall  include  any
improvements  projected  to  be  made  by  the  taxpayer to the property
comprising  the  regionally  significant  project  or  located  in   the
investment  zone  as  listed in its application for participation in the
excelsior jobs program.
5. Refundability of credits. The tax credit components established  in
this  section  shall  be  refundable  as  provided  in the tax law. If a
participant fails to satisfy the eligibility criteria in any  one  year,
it  will  lose  the  ability to claim credit for that year. The event of
such failure shall not extend the original ten-year eligibility period.
6. Claim of tax credit. The business enterprise shall  be  allowed  to
claim  the credit as prescribed in section thirty-one of the tax law. No
costs used by an entertainment company as the basis for the allowance of
a  tax  credit  described  in  this  section  shall  be  used  by   such
entertainment  company to claim any other credit allowed pursuant to the
tax law. No costs or expenditures for child  care  services  used  by  a
participant  to  claim the credit as prescribed in section forty-four of
the tax law shall be used for the allowance of a tax credit described in
this section.
7. For availability of special excelsior jobs program rates  governing
the  provision  of  gas or electric service, see subdivision twelve-d of
section sixty-six of the public service law. Such special excelsior jobs
program rates may remain available to participants as  defined  in  this
article  for a period of up to ten years commencing in the first taxable
year that the participant receives a certificate of tax credit,  or  the
first  taxable  year  listed  on  its  preliminary schedule of benefits,
whichever is later. Notwithstanding any other provision of this section,
such special excelsior job program rates shall  remain  available  to  a
Green  CHIPS  project  which enters into a phase two of such project for
the entirety of both of its schedules of benefits. Provided however,  if
a  participant  is  removed  from the excelsior jobs program pursuant to
this article, the excelsior jobs program rates may be denied.