The Excelsior Jobs Program is a powerful economic development incentive created to provide competitive financial incentives for businesses in New York. Designed to encourage businesses to expand in or relocate to New York, the Program applies to businesses that will create or retain jobs and make significant capital investments.
Generally, the be eligible under the Program, a business must create a specified number of net new jobs, defined as being new to the State, full-time or equivalent to full-time (requiring at least 35 hours per week), and filled for more than six months.
The following strategic businesses located in or planning to locate in New York are eligible under the Program:
Scientific Research and Development businesses creating at least 5 net new jobs
Software Development businesses creating at least 5 net new jobs
Financial services (customer service) back office operations creating at least 25 net new jobs
Agriculture businesses creating at least 5 net new jobs
Manufacturing businesses creating at least 5 net new jobs
Back office businesses creating at least 25 net new jobs
Distribution businesses creating at least 50 net new jobs
Music Production businesses creating at least 5 net new jobs
Entertainment Companies creating at least 100 net new jobs
Life Sciences Companies creating at least 5 net new jobs
Other businesses creating at least 150 net new jobs and investing at least $3 million
Businesses in strategic industries that make significant capital investment that have at least 25 employees; manufacturing firms who retain at least 5 employees are also eligible to apply for participation in the program.
Businesses deemed eligible under the Program may qualify for four fully refundable tax credits:
Excelsior Jobs Tax Credit: A credit of 6.85% of wages per net new job.
Excelsior Investment Tax Credit: Valued at 2% of qualified investments.
Excelsior Research and Development Tax Credit: A credit of 50% of the Federal Research and Development credit up to six percent of research expenditures in New York State.
Excelsior Real Property Tax Credit: Available to firms locating in certain distressed areas and to firms in targeted industries that meet higher employment and investment thresholds (Regionally Significant Project).
The Excelsior Jobs Program has been wildly popular and incredibly successful. Since its implementation, over 1,870 applications have been submitted, with 548 projects receiving approval, totaling over $954 million in tax credits being committed. Eligible businesses under the Program have committed to capital investments of over $5.38 billion, research and development expenditures of another $2.84 billion and the creation of 56,826 jobs.
If interested in learning more about the Excelsior Jobs Program or other economic development incentive programs, please do not hesitate to contact Murphy Partners LLP at (973) 723-7036 or firstname.lastname@example.org.
MURPHY PARTNERS LLP
Murphy Partners LLP is a boutique law firm specializing in commercial real estate and economic incentive advisory. The firm was founded to provide effective, efficient, and creative legal services to meet the distinctive needs of our clients. Through the development of comprehensive legal strategies, our team works tirelessly to create a blueprint for success and advance our clients’ interests in every matter.
As New Jersey and New York City continue to compete for marquee corporate tenants, Governor Andrew Cuomo recently signed legislation to extend tax incentives aimed at attracting businesses and developers to Lower Manhattan. The legislation extends five programs, including the Commercial Revitalization Program (CRP), the Industrial and Commercial Abatement Program, the Sales Tax Exemption Program, the Lower Manhattan Relocation Employment Assistance Program (LM-REAP), and the Lower Manhattan Energy Program.
While each program is different in size and scope, the ultimate goal remains the same: to increase private capital investment and encourage job growth in an increasingly competitive environment. The legislation extends the following programs:
Commercial Revitalization Program (CRP) provides tax incentives to owners investing in building improvements in nonresidential or mixed-use buildings built before 1975.
Industrial and Commercial Abatement Program provides a property tax abatement for up to 25 years for building, modernizing, expanding, or otherwise physically improving industrial and commercial buildings.
Sales Tax Exemption Program provides an abatement for goods purchased for building out space in Lower Manhattan.
Lower Manhattan Relocation Employment Assistance Program (LM-REAP) provides an annual credit of $3,000 per job, per year for companies moving to lower Manhattan from outside of the city.
Lower Manhattan Energy Program provides property owners and commercial tenants in eligible buildings located in lower Manhattan up to 45% reduction in electricity transportation and delivery costs for up to twelve years.