§ 355 — Excelsior jobs program credit

§ 355. Excelsior jobs program credit. 1. Excelsior jobs tax credit\ncomponent. A participant in the excelsior jobs program shall be eligible\nto claim a credit for each net new job it creates in New York state. In\na project that is not a green project, the amount of such credit per job\nshall be equal to the product of the gross wages paid and up to 6.85\npercent. In a green project, or a Green CHIPS project, the amount of\nsuch credit per job shall be equal to the product of the gross wages\npaid and up to 7.5 percent. Provided, however, given the\ntransformational nature of Green CHIPS projects, only the first two\nhundred thousand dollars of gross wages per job shall be eligible for\nthis credit. The maximum amount of gross wages per job for a Green CHIPS\nproject may be adjusted for inflation at an annual amount determined by\nthe commissioner in a manner substantially similar to the cost of living\nadjustments calculated by the United States Social Security\nAdministration based on changes in consumer price indices or a rate of\nfour percent per year, whichever is higher. In a semiconductor supply\nchain project, the amount of such credit per job shall be equal to the\nproduct of the gross wages paid and up to seven percent.\n 2. Excelsior investment tax credit component. A participant in the\nexcelsior jobs program shall be eligible to claim a credit on qualified\ninvestments. In a project that is not a green project, the credit shall\nbe equal to two percent of the cost or other basis for federal income\ntax purposes of the qualified investment. In a green project, the credit\nshall be equal to five percent of the cost or other basis for federal\nincome tax purposes of the qualified investment. In a project for child\ncare services or a Green CHIPS project, the credit shall be up to five\npercent of the cost or other basis for federal income tax purposes of\nthe qualified investment in child care services or in the Green CHIPS\nproject as applicable. In a semiconductor supply chain project, the\ncredit shall be up to three percent of the cost or other basis for\nfederal income tax purposes of the qualified investment. A participant\nmay not claim both the excelsior investment tax credit component and the\ninvestment tax credit set forth in subdivision one of section two\nhundred ten-B, subsection (a) of section six hundred six, the former\nsubsection (i) of section fourteen hundred fifty-six, or subdivision (q)\nof section fifteen hundred eleven of the tax law for the same property\nin any taxable year, except that a participant may claim both the\nexcelsior investment tax credit component and the investment tax credit\nfor research and development property. In addition, a taxpayer who or\nwhich is qualified to claim the excelsior investment tax credit\ncomponent and is also qualified to claim the brownfield tangible\nproperty credit component under section twenty-one of the tax law may\nclaim either the excelsior investment tax credit component or such\ntangible property credit component, but not both with regard to a\nparticular piece of property. A credit may not be claimed until a\nbusiness enterprise has received a certificate of tax credit, provided\nthat qualified investments made on or after the issuance of the\ncertificate of eligibility but before the issuance of the certificate of\ntax credit to the business enterprise, may be claimed in the first\ntaxable year for which the business enterprise is allowed to claim the\ncredit. Expenses incurred prior to the date the certificate of\neligibility is issued are not eligible to be included in the calculation\nof the credit.\n 2-a. Excelsior child care services tax credit component. A participant\nin the excelsior jobs program shall be eligible to claim a credit on its\nnet new child care services expenditures for its operation, sponsorship\nor direct financial support of a child care services program. The credit\nshall be up to six percent of the net new child care services\nexpenditures as defined in this chapter.\n 3. Excelsior research and development tax credit component. A\nparticipant in the excelsior jobs program shall be eligible to claim a\ncredit equal to fifty percent of the portion of the participant's\nfederal research and development tax credit that relates to the\nparticipant's research and development expenditures in New York state\nduring the taxable year; provided however, if not a green project, the\nexcelsior research and development tax credit shall not exceed six\npercent of the qualified research and development expenditures\nattributable to activities conducted in New York state, or, if a green\nproject or a Green CHIPS project, the excelsior research and development\ntax credit shall not exceed eight percent of the research and\ndevelopment expenditures attributable to activities conducted in New\nYork state, or if a semiconductor supply chain project, the excelsior\nresearch and development tax credit shall not exceed seven percent of\nthe qualified research and development expenditures attributable to\nactivities conducted in New York state. If the federal research and\ndevelopment credit has expired, then the research and development\nexpenditures relating to the federal research and development credit\nshall be calculated as if the federal research and development credit\nstructure and definition in effect in two thousand nine were still in\neffect. Notwithstanding any other provision of this chapter to the\ncontrary, research and development expenditures in this state, including\nsalary or wage expenses for jobs related to research and development\nactivities in this state, may be used as the basis for the excelsior\nresearch and development tax credit component and the qualified emerging\ntechnology company facilities, operations and training credit under the\ntax law.\n 4. Excelsior real property tax credit component. (a) A participant in\nthe excelsior jobs program who either qualified as a regionally\nsignificant project or is located in an investment zone shall be\neligible to claim a credit for a period of ten years.\n (b) The credit in year one shall be equal to fifty percent of the\neligible real property taxes on the real property comprising the\nregionally significant project or located in the investment zone. In the\nremaining years the credit shall be computed according to the following\nschedule:\n Year two: forty-five percent of eligible real property taxes on the\nreal property comprising the regionally significant project or located\nin the investment zone;\n Year three: forty percent of eligible real property taxes on the real\nproperty comprising the regionally significant project or located in the\ninvestment zone;\n Year four: thirty-five percent of eligible real property taxes on real\nproperty comprising the regionally significant project or located in the\ninvestment zone;\n Year five: thirty percent of eligible real property taxes on the real\nproperty comprising the regionally significant project or located in the\ninvestment zone;\n Year six: twenty-five percent of eligible real property taxes on the\nreal property comprising the regionally significant project or located\nin the investment zone;\n Year seven: twenty percent of eligible real property taxes on the real\nproperty comprising the regionally significant project or located in the\ninvestment zone;\n Year eight: fifteen percent of eligible real property taxes on the\nreal property comprising the regionally significant project or located\nin the investment zone;\n Year nine: ten percent of eligible real property taxes on the real\nproperty comprising the regionally significant project or located in the\ninvestment zone; and\n Year ten: five percent of eligible real property taxes on the real\nproperty comprising the regionally significant project or located in the\ninvestment zone.\n (c) For purposes of this credit, the term "eligible real property\ntaxes" shall have the same meaning as in subdivision (e) of section\nfifteen of the tax law, provided that such subdivision (e) shall be read\nas if it specifically referenced the excelsior jobs program and\nparticipants in that program.\n (d) In calculating the excelsior real property tax credit and\ndetermining the maximum aggregate amount of such credit component in the\npreliminary schedule of benefits, the commissioner shall include any\nimprovements projected to be made by the taxpayer to the property\ncomprising the regionally significant project or located in the\ninvestment zone as listed in its application for participation in the\nexcelsior jobs program.\n 5. Refundability of credits. The tax credit components established in\nthis section shall be refundable as provided in the tax law. If a\nparticipant fails to satisfy the eligibility criteria in any one year,\nit will lose the ability to claim credit for that year. The event of\nsuch failure shall not extend the original ten-year eligibility period.\n 6. Claim of tax credit. The business enterprise shall be allowed to\nclaim the credit as prescribed in section thirty-one of the tax law. No\ncosts used by an entertainment company as the basis for the allowance of\na tax credit described in this section shall be used by such\nentertainment company to claim any other credit allowed pursuant to the\ntax law. No costs or expenditures for child care services used by a\nparticipant to claim the credit as prescribed in section forty-four of\nthe tax law shall be used for the allowance of a tax credit described in\nthis section.\n 7. For availability of special excelsior jobs program rates governing\nthe provision of gas or electric service, see subdivision twelve-d of\nsection sixty-six of the public service law. Such special excelsior jobs\nprogram rates may remain available to participants as defined in this\narticle for a period of up to ten years commencing in the first taxable\nyear that the participant receives a certificate of tax credit, or the\nfirst taxable year listed on its preliminary schedule of benefits,\nwhichever is later. Notwithstanding any other provision of this section,\nsuch special excelsior job program rates shall remain available to a\nGreen CHIPS project which enters into a phase two of such project for\nthe entirety of both of its schedules of benefits. Provided however, if\na participant is removed from the excelsior jobs program pursuant to\nthis article, the excelsior jobs program rates may be denied.\n