October 06, 2011
Recharge New York: A New New York State Economic Development Program - Applications Now Available
During April, 2011, Governor Andrew M. Cuomo's signed into law a new statewide economic development power program, Recharge NY, for qualified businesses and not-for-profit corporations. The program is designed to retain and create jobs through allocations of low-cost power. The applications became available on September 27, 2011.
The Recharge NY program provides for low cost hydropower or market power, provided by NYPA, for eligible applicants for a seven year period. The state has allotted a block of 910 Megawatts (MW) of electric power for purposes of this program. This program replaces the "Power for Jobs" program.
The program is open to businesses and non-profit organizations, however, certain entities are not eligible, such as retail businesses, sports venues, gaming or entertainment-related establishments, and places of overnight accommodation.
There is an application process and a selection process on all applicants. Applications are available online through the New York State Consolidated Funding Application (CFA). The CFA is a single application for accessing multiple funding sources from the state and can be accessed at http://nyworks.ny.gov/
Qualified applicants will include those making future job and investment commitments. Those considering applying will need to provide copies of 12 months of bills, current employment levels, future hiring plans, and future investment and expansion plans. Allocations of power are discretionary and will be made through the application process. Applicants will be evaluated based on criteria including:
- Significance of the cost of electricity to applicant's total cost of doing business
- New capital investments
- Type and cost of buildings, equipment and facilities to be constructed, enlarged or installed
- Applicant's payroll, salaries, benefits and number of jobs at the facility receiving an RNY allocation
- Number of jobs created or retained within New York State
- Applicant's risk of closure, curtailing facilities or operations, relocating out-of-state, or losing jobs in the state
- Significance of applicant's facility to the local economy
- Extent of applicant's investment in energy efficiency measures
- The extent to which an RNY allocation will result in an advantage relative to the applicant's competitors within the state
- If applicant is a not-for-profit, the significance of the critical service or substantial benefits being provided to the local community where the facility is located
The deadline for submitting a completed CFA application for Recharge New York power is November 30th.
Should you have any questions regarding the Recharge NY program or the CFA, please contact your Marcum Tax Professional.