N.Y. Economic Development Law § 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. In a semiconductor supply

chain project, the amount of such credit per job shall be equal to the

product of the gross wages paid and up to seven percent.

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. In a semiconductor supply chain project, the

credit shall be up to three percent of the cost or other basis for

federal income tax purposes of the qualified investment. 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, or if a semiconductor supply chain project, the excelsior

research and development tax credit shall not exceed seven percent of

the qualified 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.