New York Codes, Rules and Regulations › Title 5 - DEPARTMENT OF ECONOMIC DEVELOPMENT › Chapter XIX - Excelsior Jobs Program › Part 193 - Calculation of the tax credits › Section 193.1 - Calculation of tax credits

Current through Register Vol. 46, No. 28, July 10, 2024
(a) The
				department shall calculate the amount of each tax credit component for which
				the participant is eligible pursuant to section
				355 of
				the Economic Development Law. The amount of each component shall be separately
				stated on the certificate of tax credit.
(b) Excelsior Jobs Program Credit Component.
				A participant in the 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 gross wages
				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, for the year 2022, only the first two hundred
				thousand dollars of gross wages per job shall be eligible for this credit.
				Starting in 2023 and each year thereafter, the maximum amount of gross wages
				per job for a Green CHIPS project shall 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.
(c) Excelsior Investment Tax Credit
				Component. A participant in the 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 section 210-B(1), section 606(a), the former
				section 1456
				(i), or section
				1511 (q) 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
				21 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. The
				Excelsior Investment Tax Credit Component may not be claimed until a
				participant 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 participant, may be
				claimed in the first taxable year for which the participant 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.
(d) 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 Part.
(e) Excelsior Research and Development Tax
				Credit Component. A participant in the program shall be eligible to claim a
				credit equal to 50 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 2009 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 a 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.
(f) Excelsior Real Property Tax Credit
				Component.
(1) A participant in the program
				who either qualified as a regionally significant project, a Green CHIPS project
				that meets the requirements of a regionally significant project under this
				Title or is located in an investment zone shall be eligible to claim an
				excelsior real property tax credit for a period of 10 years. In the first year,
				the credit shall be equal to 50 percent of the eligible real property taxes on
				the real property comprising the regionally significant project or located in
				the investment zone.
(2) In the
				remaining years the credit shall be computed according to the following
				schedule:
(i) Year two: 45 percent of eligible
				real property taxes on the real property comprising the regionally significant
				project or located in the investment zone;
(ii) Year three: 40 percent of eligible real
				property taxes on the real property comprising the regionally significant
				project or located in the investment zone;
(iii) Year four: 35 percent of eligible real
				property taxes on real property comprising the regionally significant project
				or located in the investment zone;
(iv) Year five: 30 percent of eligible real
				property taxes on the real property comprising the regionally significant
				project or located in the investment zone;
(v) Year six: 25 percent of eligible real
				property taxes on the real property comprising the regionally significant
				project or located in the investment zone;
(vi) Year seven: 20 percent of eligible real
				property taxes on the real property comprising the regionally significant
				project or located in the investment zone;
(vii) Year eight: 15 percent of eligible real
				property taxes on the real property comprising the regionally significant
				project or located in the investment zone;
(viii) Year nine: 10 percent of eligible real
				property taxes on the real property comprising the regionally significant
				project or located in the investment zone; and
(ix) Year ten: five percent of eligible real
				property taxes on the real property comprising the regionally significant
				project or located in the investment zone.
(3) For purposes of this credit component,
				the term eligible real property taxes shall have the same meaning as in section
				15 (e) 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.
(4) 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. Provided, however, the actual amount of the
				excelsior real property tax credit issued by the department for a taxable year
				cannot exceed the real property taxes assessed and paid by a participant during
				that taxable year when issued a certificate of tax credit pursuant to section
				192.1(e) of this
				Title.