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Tax Credits & Incentives - New York


The following listing provides information on a variety of select business incentives, some of which are tax credits or exemptions while others are non-tax incentives.

 

Investment Tax Credit (ITC)

This credit is allowed to offset the Corporate Franchise and Individual Income Taxes. Available to all companies making an investment in depreciable property and/or equipment which is primarily used in manufacturing, processing, assembly, industrial waste treatment or air pollution-control facilities, R&D or financial institutions. Entities taking advantage of this credit may also be eligible to take advantage of an additional Employment Incentive Credits (EIC) which is based on a percentage of the ITC base.

Manufacturing Assistance Program (MAP) Grant

Assist resident manufactures employing 50 to 1,000 workers, provides grants up to $1 million but, must export 30% production beyond their region.

Employment Incentive Credit

If employment is increased when investment is made, 30% of the investment tax credit is available for each of the three years after the credit was claimed.

Zone Capital Credits

A 25% tax credit is available for personal or corporate income tax payers for eligible investments in certified zone businesses or contributions to approved community development projects.

The New York Empowerment Zone (QEZE)

Wage Tax Credit
Available to companies hiring full-time equivalent employees in a qualified zone. Available up to 5 consecutive years, $1,500 per employee, unused credits can be forwarded indefinitely. (New businesses are eligible to refund 50% of unused credits).

Real Property Tax Credit
A credit for real property taxes paid based on a formula that considers job creation, wages and benefits or investments made in the zone.

Tax Reduction Credit
A credit against tax equal to a percentage of income taxes attributable to the zone enterprise based on its employment growth in the zone, available up to 10 years.

Investment Tax Credit
(See above for ITC explanation) Credit in zone: 10% (8% personal income tax filers) of the eligible investment can be taken; unused credit can be utilized on a go forward basis. (New businesses are eligible to refund 50% of unused credits).

(Program has sunsetted as of June 30, 2010 and has been replaced by Excelsior, described below. These QEZE benefits apply only to pre approved entities.)

Qualified Emerging Technology Company (QETC)

Has less than 100 employees (75% in NYS), gross revenue not to exceed $10 million, have R&D activity in NYS, and broad definition of research. QETC Credits available:

  • Employment Credit
  • Capital Tax Credit
  • Research Credit.

Credit can be refundable.

Green Building Tax Credit

You're entitled to this nonrefundable credit if you or your business:

  • had expenses and purchases relating to the construction, rehabilitation, and maintenance of buildings that meet environmental and energy efficiency standards
  • have a credit component certificate issued by the Department of Environmental Conservation
  • have an eligibility certificate issued by a licensed architect or engineer certifying that you have met the required green building standards for the year you're claiming

How much is the credit?

  • The credit is the total of the credit components as listed on the component certificate issued by the Department of Environmental Conservation.

Empire State Film Production Credit

You're entitled to this refundable credit if you or your business:

  • paid or incurred qualified production costs in producing a qualified film or television show in New York State, and
  • has an allocation certificate issued by the New York State Governor’s Office for Motion Picture and Television Development

How much is the credit?

  • The credit amount is based on the qualified production costs. The amount is allocated by the New York State Governor's Office for Motion Picture and Television Development and is indicated on the certificate.

New York Excelsior Program

The Excelsior Jobs Program was introduced in New York State during September 2010 by then Governor, Patterson. The Excelsior Jobs Program replaced the Empire Zone Program in offering significant income tax credits to qualifying New York State businesses. During Governor Cuomo's inaugural address this January, he vowed to expand this program. The program upgrade and revisions have been recently released as of May 2011 and again in July 2011..

The Excelsior Jobs Program provides job creation and investment incentives to firms in targeted industries such as biotechnology, pharmaceutical, high-tech, clean-technology, green technology, financial services, agriculture and manufacturing. The program encourages firms to expand or relocate to New York while monitoring the firms to make sure they deliver on job and investment commitments. The Program focuses on the growth and expansion of the high-tech and clean energy jobs of tomorrow, while supporting the manufacturing sector that remains the backbone of our economy. Firms in these industries that create and maintain new jobs or make investments are eligible to apply for four new credits. 

The Program will be administered and applications will be approved by Empire State Development (ESD.) ESD, with multiple locations throughout the state, will issue certificates to approved taxpayers annually, entitling them to claim eligible credits.  Upon submission of the application, ESD will calculate the maximum potential tax credits over a ten year period based on the applicant company’s plan for expansion or growth.

Excelsior offers four new fully refundable tax credits, all available for a 10 year period:
 

  • The Excelsior Jobs Tax Credit - a refundable tax credit of 6.85% of wages per new job created.
  • The Excelsior Investment Tax Credit - a refundable credit equal to 2% of the cost of qualified investments. Generally, a qualified investment is depreciable property with a useful life of four or more years located in New York and placed in service on or after the date ESD issues an eligibility certificate to the taxpayer.
  • The Excelsior Research and Development Credit - a refundable tax credit equal to 50% of the Federal Research and Development Credit for research expenditures in New York.
  • The Excelsior Real Property Tax Credit - this refundable credit is available to businesses located in designated distressed areas of the state (generally, zones formerly designated as Investment Zones under the Empire Zones Program) or to businesses meeting higher employment or investment standards (Regionally Significant Project.)  The credit is equal to 50% of the property taxes assessed and paid in the year prior to a taxpayer’s application to the Excelsior Program and the credit decreases by 5% each year following thereafter, for ten years.

In addition to income tax credits, the Program also authorizes utilities to offer discounted gas and electric rates.
The cap on program costs has been increased to $500 million annually and firms will be granted the credits only after they have met the annual program requirements. Eligibility is discretionary and is based upon projected long term growth, job creation and expansion in New York.

Find Out More

www.nylovesbiz.com
www.nystax.gov
www.nysedc.org
www.ci.nyc.ny.us
PHONE ESD 518-292-5240
PHONE NYS 888-372-0020

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