Excelsior jobs program tax credit (Articles 9-A, 22, and 33)

The excelsior jobs program tax credit (the program) has been extended through tax year 2039.

In addition, enhancements have been made to the program to add tax credits for green projects aimed at reducing greenhouse gas emissions and supporting the use of clean energy.

A green project is defined as a project deemed by the Commissioner of Economic Development to make products or develop technologies that are primarily aimed at reducing greenhouse gas emissions or supporting the use of clean energy.

A green project includes, but is not limited to, the manufacture or development of products or technologies or supply chain components primarily for renewable energy systems, vehicles that use non-hydrocarbon fuels and produce zero or near zero emissions, heat pumps, energy efficiency, clean energy storage and other products that significantly reduce greenhouse gas emissions by minimizing the utilization of depletable resources or by improving industrial efficiency.

A green project does not include a project primarily composed of necessarily local activities such as retail, building construction, or the installation, deployment or adoption of a clean energy product or development of technologies that would produce only marginal and incremental energy savings or environmental benefits ancillary to the core function of the product or technology.

To be eligible for the credit for green projects , a company must be engaged in a green project and must be operating predominately in New York State in one of the following industries:

manufacturing;

software development and new media;

scientific research and development; or

agriculture.

A participant in the program may be eligible to claim the:

excelsior jobs tax credit component for each net new job it creates in New York State. The existing jobs credit is 6.85% for traditional projects and 7.5% for green projects .

investment tax credit component on qualified investments. The investment tax credit is 2% of qualified costs for traditional projects and 5% for green projects .

research and development tax credit component for expenditures attributable to activities conducted in New York State. The research and development tax credit is 6% of expenditures for traditional projects and 8% for green projects .

The amount of each credit component allowed is determined by Empire State Development. For more information on this credit, visit their website at www.esd.ny.gov .

[Part L of Chapter 59 of the Laws of 2020; Tax Law §§ 31, 210-B(31), 606(qq), and 1511(y)]