The Excelsior Jobs Program is a powerful economic development incentive created to provide competitive financial incentives for businesses in New York. Designed to encourage businesses to expand in or relocate to New York, the Program applies to businesses that will create or retain jobs and make significant capital investments.

Generally, the be eligible under the Program, a business must create a specified number of net new jobs, defined as being new to the State, full-time or equivalent to full-time (requiring at least 35 hours per week), and filled for more than six months.

The following strategic businesses located in or planning to locate in New York are eligible under the Program:

• Scientific Research and Development businesses creating at least 5 net new jobs
• Manufacturing businesses creating at least 5 net new jobs
• Back office businesses creating at least 25 net new jobs
• Distribution businesses creating at least 50 net new jobs
• Music Production businesses 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 businesses creating at least 150 net new jobs and investing at least $3 million
• Businesses 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.

Businesses deemed eligible under the Program may qualify for four fully refundable tax credits:

1. Excelsior Jobs Tax Credit: A credit of 6.85% of wages per net new job.
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 six percent of research expenditures in New York State.
4. Excelsior Real Property Tax Credit: Available to firms locating in certain distressed areas and to firms in targeted industries that meet higher employment and investment thresholds (Regionally Significant Project).

The Excelsior Jobs Program has been wildly popular and incredibly successful. Since its implementation, over 1,870 applications have been submitted, with 548 projects receiving approval, totaling over $954 million in tax credits being committed. Eligible businesses under the Program have committed to capital investments of over $5.38 billion, research and development expenditures of another $2.84 billion and the creation of 56,826 jobs.

If interested in learning more about the Excelsior Jobs Program or other economic development incentive programs, please do not hesitate to contact Murphy Partners LLP at (973) 723-7036 or info@murphyllp.com.