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SECTION 355
Excelsior jobs program credit
Economic Development Law (COM) CHAPTER 15, ARTICLE 17
§ 355. Excelsior jobs program credit. 1. Excelsior jobs tax credit
component. A participant in the excelsior jobs program shall be eligible
to claim a credit for each net new job it creates in New York state. In
a project that is not a green project, the amount of such credit per job
shall be equal to the product of the gross wages paid and up to 6.85
percent. In a green project, the amount of such credit per job shall be
equal to the product of the gross wages paid and up to 7.5 percent.

2. Excelsior investment tax credit component. A participant in the
excelsior jobs program shall be eligible to claim a credit on qualified
investments. In a project that is not a green project, the credit shall
be equal to two percent of the cost or other basis for federal income
tax purposes of the qualified investment. In a green project, the credit
shall be equal to five percent of the cost or other basis for federal
income tax purposes of the qualified investment. In a project for child
care services, the credit shall be up to five percent of the cost or
other basis for federal income tax purposes of the qualified investment
in child care services. A participant may not claim both the excelsior
investment tax credit component and the investment tax credit set forth
in subdivision one of section two hundred ten-B, subsection (a) of
section six hundred six, the former subsection (i) of section fourteen
hundred fifty-six, or subdivision (q) of section fifteen hundred eleven
of the tax law for the same property in any taxable year, except that a
participant may claim both the excelsior investment tax credit component
and the investment tax credit for research and development property. In
addition, a taxpayer who or which is qualified to claim the excelsior
investment tax credit component and is also qualified to claim the
brownfield tangible property credit component under section twenty-one
of the tax law may claim either the excelsior investment tax credit
component or such tangible property credit component, but not both with
regard to a particular piece of property. A credit may not be claimed
until a business enterprise has received a certificate of tax credit,
provided that qualified investments made on or after the issuance of the
certificate of eligibility but before the issuance of the certificate of
tax credit to the business enterprise, may be claimed in the first
taxable year for which the business enterprise is allowed to claim the
credit. Expenses incurred prior to the date the certificate of
eligibility is issued are not eligible to be included in the calculation
of the credit.

2-a. Excelsior child care services tax credit component. A participant
in the excelsior jobs program shall be eligible to claim a credit on its
net new child care services expenditures for its operation, sponsorship
or direct financial support of a child care services program. The credit
shall be up to six percent of the net new child care services
expenditures as defined in this chapter.

3. Excelsior research and development tax credit component. A
participant in the excelsior jobs program shall be eligible to claim a
credit equal to fifty percent of the portion of the participant's
federal research and development tax credit that relates to the
participant's research and development expenditures in New York state
during the taxable year; provided however, if not a green project, the
excelsior research and development tax credit shall not exceed six
percent of the qualified research and development expenditures
attributable to activities conducted in New York state, or, if a green
project, the excelsior research and development tax credit shall not
exceed eight percent of the research and development expenditures
attributable to activities conducted in New York state. If the federal
research and development credit has expired, then the research and
development expenditures relating to the federal research and
development credit shall be calculated as if the federal research and
development credit structure and definition in effect in two thousand
nine were still in effect. Notwithstanding any other provision of this
chapter to the contrary, research and development expenditures in this
state, including salary or wage expenses for jobs related to research
and development activities in this state, may be used as the basis for
the excelsior research and development tax credit component and the
qualified emerging technology company facilities, operations and
training credit under the tax law.

4. Excelsior real property tax credit component. (a) A participant in
the excelsior jobs program who either qualified as a regionally
significant project or is located in an investment zone shall be
eligible to claim a credit for a period of ten years.

(b) The credit in year one shall be equal to fifty percent of the
eligible real property taxes on the real property comprising the
regionally significant project or located in the investment zone. In the
remaining years the credit shall be computed according to the following
schedule:

Year two: forty-five percent of eligible real property taxes on the
real property comprising the regionally significant project or located
in the investment zone;

Year three: forty percent of eligible real property taxes on the real
property comprising the regionally significant project or located in the
investment zone;

Year four: thirty-five percent of eligible real property taxes on real
property comprising the regionally significant project or located in the
investment zone;

Year five: thirty percent of eligible real property taxes on the real
property comprising the regionally significant project or located in the
investment zone;

Year six: twenty-five percent of eligible real property taxes on the
real property comprising the regionally significant project or located
in the investment zone;

Year seven: twenty percent of eligible real property taxes on the real
property comprising the regionally significant project or located in the
investment zone;

Year eight: fifteen percent of eligible real property taxes on the
real property comprising the regionally significant project or located
in the investment zone;

Year nine: ten percent of eligible real property taxes on the real
property comprising the regionally significant project or located in the
investment zone; and

Year ten: five percent of eligible real property taxes on the real
property comprising the regionally significant project or located in the
investment zone.

(c) For purposes of this credit, the term "eligible real property
taxes" shall have the same meaning as in subdivision (e) of section
fifteen of the tax law, provided that such subdivision (e) shall be read
as if it specifically referenced the excelsior jobs program and
participants in that program.

(d) In calculating the excelsior real property tax credit and
determining the maximum aggregate amount of such credit component in the
preliminary schedule of benefits, the commissioner shall include any
improvements projected to be made by the taxpayer to the property
comprising the regionally significant project or located in the
investment zone as listed in its application for participation in the
excelsior jobs program.

5. Refundability of credits. The tax credit components established in
this section shall be refundable as provided in the tax law. If a
participant fails to satisfy the eligibility criteria in any one year,
it will lose the ability to claim credit for that year. The event of
such failure shall not extend the original ten-year eligibility period.

6. Claim of tax credit. The business enterprise shall be allowed to
claim the credit as prescribed in section thirty-one of the tax law. No
costs used by an entertainment company as the basis for the allowance of
a tax credit described in this section shall be used by such
entertainment company to claim any other credit allowed pursuant to the
tax law. No costs or expenditures for child care services used by a
participant to claim the credit as prescribed in section forty-four of
the tax law shall be used for the allowance of a tax credit described in
this section.

7. For availability of special excelsior jobs program rates governing
the provision of gas or electric service, see subdivision twelve-d of
section sixty-six of the public service law. Such special excelsior jobs
program rates may remain available to participants as defined in this
article for a period of up to ten years commencing in the first taxable
year that the participant receives a certificate of tax credit, or the
first taxable year listed on its preliminary schedule of benefits,
whichever is later. Provided however, if a participant is removed from
the excelsior jobs program pursuant to this article, the excelsior jobs
program rates may be denied.