Mintz Levin’s Tax Credit Guide

Public Resources for New York Entrepreneurs



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Excelsior Jobs Program

Application Deadline: Open application.

Funding Opportunity: Businesses in the Excelsior Jobs Program may qualify for four fully refundable tax credits. Businesses claim the credits over a benefit period of up to 10 years. Credits are generally available for strategic businesses such as high tech, bio-tech, clean-tech and manufacturing that create jobs or make significant capital investments.

Requirements:

To earn credits, businesses must first meet and maintain the following established job and investment thresholds:

  1. Excelsior Jobs Tax Credit: a credit of 6.85% of wages
  2. Excelsior Investment Tax Credit:  valued at 2% of qualified investments
  3. Excelsior Research and Development Tax Credit:  a credit of 50% of the Federal Research and Development credit up to 6% of research expenditures in New York State
  4. Excelsior Real Property Tax Credit: available to businesses locating in certain distressed areas and to businesses in targeted industries that meet the higher employment and investment thresholds required to be considered a Regionally Significant Project.

A “Regionally Significant Project” means:

  • a manufacturer creating at least 50 net new jobs in the state and making a significant capital investment in the state of at least $5,000,000;
  • a business creating at least 20 net new jobs in agriculture in the state and making a significant capital investment in the state of at least $500,000;  
  • a financial services firm or back office operation creating at least 300 net new jobs in the state and making a significant capital investment in the state of at least $6,000,000;
  • a distribution center creating at least 300 net new jobs in the state and making a significant capital investment in the state of $30,000,000; or
  • a scientific research and development firm creating at least 20 net new jobs in the state and making a significant capital investment in the state of at least $6,000,000.

Other businesses creating 300 or more net new jobs in the state and making a significant capital investment in the state of at least $6,000,000 also may be considered eligible as a regionally significant project by the Commissioner. In order to be a regionally significant project under this subdivision a business must export a substantial portion of its products or services outside of the state or outside of a metropolitan statistical area or county within the state.

The following strategic businesses located in or planning to locate in New York State that will create or retain jobs and make significant capital investments are eligible: 

  • Scientific Research and Development firms creating at least 5 net new jobs
  • Software Development firms creating at least 5 net new jobs
  • Financial services (customer service) back office operations creating at least 25 net new jobs
  • Agriculture firms creating at least 5 net new jobs
  • Manufacturing firms creating at least 5 net new jobs
  • Back office firms creating at least 25 net new jobs
  • Distribution firms creating at least 50 net new jobs
  • Music Production firms 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 firms creating at least 150 net new jobs and investing at least $3,000,000
  • Firms 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

Industry Specific: Yes. Target industries include biotechnology, pharmaceutical, high-tech, clean-technology, green technology, financial services, agriculture and manufacturing.


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Qualified Emerging Technology Company Incentives

Application Deadline: Open application.

Funding Opportunity: The New York State Department of Taxation and Finance offers three types of tax credits are available for Qualified Emerging Technology Companies (“QETC”) including:

  1. Employment credit for job creation
  2. Facilities, operations, and training credit 
  3. Capital tax credit for investors in qualified emerging technology companies

Requirements:

  • QETC Employment Credit:
    • You’re entitled to this refundable credit if you or your business is a QETC, and the average number of individuals employed full‑time by the business in New York State during the tax year is at least 101% of the business’ base-year employment number.
    • The amount of the credit is equal to the average number of full-time employees in New York State for the current tax year, minus the business’ base‑year employment number, multiplied by $1,000 and is available for three consecutive years.
  • QETC Capital Tax Credit:
    • You’re entitled to this nonrefundable credit if you or your business made a qualified investment in a certified QETC.
    • The tax credit is:
      • 10% of qualified investments in certified QETCs, if you or your business certifies to the Commissioner of Taxation and Finance at the time the credit is claimed that the qualified investment will not be sold, transferred, traded, or disposed of within four years from the close of the tax year in which the QETC capital tax credit is first claimed; or
      • 20% of qualified investments in certified QETCs, if the you or your business certifies to the Commissioner of Taxation and Finance at the time the credit is claimed that the qualified investment will not be sold, transferred, traded, or disposed of within nine years from the close of the tax year in which the QETC capital tax credit is first claimed.

Industry Specific: Yes. This program works with businesses in the technology sector.


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Start-Up New York

Application Deadline: Open application.

Funding Opportunity: START-UP NY offers new and expanding businesses the opportunity to operate tax-free for 10 years on or near eligible university or college campuses in New York State.

Requirements: To participate in START-UP NY, your company must meet the following requirements:

  • Be a new business in New York State, or an existing New York business relocating to or expanding within the state
  • Partner with a New York State college or university
  • Create new jobs and contribute to the economic development of the local community

 Industry Specific: Yes. The industries listed below are NOT typically eligible to join START-UP NY, but may be eligible for one of the many other business incentive programs offered by New York State:

  • Retail and wholesale businesses
  • Restaurants
  • Law and accounting firms
  • Medical or dental practices
  • Real estate management companies/brokers
  • Hospitality
  • Retail banking
  • Utilities and energy production