Is your business thinking of expanding or hiring within New York State? New York wants to incentivize you!
Two programs that New York State established to encourage growth within the state are the Excelsior Jobs program and Start-Up NY. The Excelsior Jobs program provides refundable tax credits to companies that create and maintain a certain number of jobs over a 10-year period as well as certain capital investments. Start-Up NY aims to incentivize businesses to start or relocate to New York with the promise of 10 years of NYS tax-free operations, assuming certain criteria are met. Whether you are thinking of expanding, relocating, or hiring in New York, you should consider the following programs prior to doing so.
Start-Up NY
- New business in New York State, or an existing New York business relocating to or expanding within the state
- Expansions leading to job creation
- Strategic industry requirement
- Ten years NYS tax-free: No NYS income tax on eligible employee wages (First 5 years 100% exclusion, Second 5 years – limited); No business or corporate NYS income taxes; No franchise fees
- 120-month sales and use tax refund on eligible purchases
- Real estate transfer & real property tax exemption
- Only need to create 1 net new job in order to be eligible
Excelsior Jobs Program
- New business in New York State, or an existing New York business relocating to or expanding within the state
- Expansions leading to job creation
- Strategic industry requirement
- Refundable NYS tax credits: Jobs Tax Credit (Credit of up to 6.85% of wages per new job created); Investment Tax Credit (2% of qualified investments); R&D Tax Credit (Credit of 50% of the Federal R&D credit); Real Property Tax Credit (Available if located in certain distressed areas in targeted industries that meet higher employment and investment thresholds); Child Care Credits (Up to 6% of qualified net new childcare services expenditures)
- Utility discounts
- Job creation requirements differ based on strategic industry
It is important to be accepted into a program prior to the start of your project, so timing and planning is key in maximizing your benefits!
Both programs have different requirements and offer different benefits, which mean it's important to select the program that's the best fit for your company.
To determine program eligibility and benefit planning, and for help preparing required documentation to claim tax credits reach out to Kristin Re’ at kre@LumsdenCPA.com or visit the Lumsden McCormick website, www.LumsdenCPA.com, for more information.
