Economic Incentives

Brownfield Cleanup Program (BCP) tax credits

Three refundable tax credits are available for taxpayers who remediate a brownfield: (1) A brownfield redevelopment credit of 10% to 22% is dependent on remediation level, location and type of taxpayer (personal or corporate); (2) A credit for real property taxes for remediated brownfields based on number of employees at the location can reach 100% of real property taxes; and (3) Environmental remediation insurance credit for remediation insurance premiums up to $30,000 or 50% of premium cost, whichever is less.

Excelsior Program

The Excelsior Program was created to replace the Empire Zones program, which expired on June 30, 2010. However, for those who are used to dealing with Empire Zones, you’ll likely recognize several provisions in the Excelsior Program. The program was specifically designed to encourage the expansion in and location to New York of businesses in growth industries such as clean tech, broadband, information systems, renewable energy, and biotechnology. The program essentially contains four components:

The Excelsior Jobs Tax Credit; 6.85 % x the salary or wage of each net new employee
The Excelsior Investment Tax Credit; 2 percent refunable for eligible investment
The Excelsior Research and Development Tax Credit; 50 percent of businesses’ federal R & D credit and capped at 3 percent of total eligible R&D investment in NYS.
The Excelsior Real Property Tax Credit; The RPTC is a 10 year credit that is based on the improved value of real property due to the project. Value of credit is: 1st year > 50 percent; 2nd year > 45 percent; 3rd year > 40 percent; 4th year > 35 percent; 5th year > 30 percent; etc.
Utilities may offer a discounted Excelsior Jobs Program rate.

Industrial Development Agencies

The purposes of Industrial Development Agencies (IDAs) are to promote, develop, encourage and assist in the acquiring, constructing, reconstructing, improving, maintaining, equipping and furnishing industrial, manufacturing, (civic facilities), warehousing, commercial, research and recreation facilities including industrial pollution control facilities, educational or cultural facilities, railroad facilities, horse racing facilities ... and continuing care retirement communities, and thereby advance the job opportunities, health, general prosperity and economic welfare of the people of the state of New York and to improve their recreation opportunities, prosperity and standard of living.

Investment Tax Credit (ITC)

The ITC is available to manufacturers. The Investment Tax Credit (ITC) is 5% of the first $350 million of new or expanded manufacturing production facilities and 4% of investments over $350 million. The employment incentive credit (EIC) is based on increases from base year employment and equals 1.5%, 2.0%, and 2.5% of the ITC amount if current year employment is 101%, 102%, or 103% of base year employment, respectively.

Recharge New York Program

Recharge NY Program will take effect on July 1, 2012. The program is permanent, and allows long-term, seven year low cost energy contracts for manufacturers and other qualifying businesses.