Institutional Federal Compliance Report 2021

______________________________________________________________________________________________ STATE OF NEW YORK • 77 Program Name . . . . . . . . . . . . . . . . . . . . . . . . Excelsior Job Program and Empire State Job Retention Credit Excelsior Business Program (formerly START-UP NY) Program Purpose . . . . . . . . . . . . . . . . . . . . . . The program encourages businesses to expand

The program is designed to encourage new business creation around colleges, universities, and correctional facilities by designating these areas as tax-free.

in and relocate to the State while maintaining a guarantee to deliver on job and investment commitments to better the economy in selected regions. It includes three programs: Job Tax Credit, Investment Tax Credit, and Research and Development Tax Credit.

Taxes being abated . . . . . . . . . . . . . . . . . . . . Personal income tax, Corporate franchise tax, Bank and Insurance taxes.

Personal income tax, Corporate franchise tax, Sales and use tax, and Excise tax. State tax law: Article 22, Section 606(ww) and 612(c)(40) Article 9-A, Section 210-B(41)

Authority under which abatements are entered into . . . . . . . . . . . . . . . . . . . . .

State tax law: Article 22, Section 606(qq) and Section 606(tt) Article 9-A, Section 210-B(31) and Section 210-B(37) Article 33, Section 1511(y) and Section 1511(bb) The taxpayer applies for a credit and, if approved, is issued a certificate entitling it to the credit. The taxpayer in return creates jobs or invests in the region as specified in the application submitted.

Article 28, Section 1119(d) Article 22, Section 606(yy) Article 9-A, Section 210-B(44)

Criteria to be eligible to receive abatements and commitment of the taxpayer . . . . . . . .

The business should be relocating or expanding to the State, to a college or university campus, and should be able to create new jobs for the local community. Allowance of credit against taxes (refundable credit), refund of taxes paid and tax exemptions. The first $200,000-$300,000 of wages earned by employees of participating businesses are excluded from federal adjusted gross income for State personal income tax purposes. Participating businesses also receive a reduction in the tax factor used to calculate their Corporate franchise tax. The sales and use tax abatement equals the excise tax assessed by the telecommunication service providers.

How taxes are reduced . . . . . . . . . . . . . . . . . Allowance of credit against taxes. Refundable credit.

How amount of abatement is determined . . . . The Job Tax Credit is 6.85 percent of wages per net new job. The Investment Tax Credit is 2 percent of the qualified investments.

The Research and Development Tax Credit is 50 percent of the federal research and development credit, and up to 6 percent of research expenditures in the State.

Provisions for recapturing abated taxes . . . . . N/A

N/A

Type of commitments other than taxes . . . . . . N/A

N/A

Total revenue estimated to be reduced for calendar year 2017 . . . . . . . . . $98 million

$180 million