Institutional Federal Compliance Report 2021

______________________________________________________________________________________________ STATE OF NEW YORK • 81 Program Name . . . . . . . . . . . . . . . . . . . . . . . . Excelsior Jobs Program and Empire State Job Retention Program Credit Low Income Housing Credit Program Purpose . . . . . . . . . . . . . . . . . . . . . . The program encourages businesses to expand

The program is designed to promote the development of and facilitate investment in low-income housing.

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 tax and Insurance taxes.

Personal income tax, Corporate franchise tax and Insurance tax.

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.

State tax law: Article 22, Section 606(x) Article 9-A, Section 210-B(15) Article 33, Section 1511(n) Article 1, Section 18

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

The participant makes a long-term commitment to offer low-income housing where the buildings must serve households whose incomes are at or below 90 percent of the area median income. Allowance of credit against taxes. Non-refundable credit, can be carried forward. The credit is determined by the Division of Housing and Community Renewal and depends on the applicable percentage of the qualified basis of each low-income building. The credit amount allocated is allowed as a credit for the next 10 tax years.

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 2018 . . . . . . . . . $168 million

$38 million

The State had additional tax abatement programs each amounting to $10 million or less in revenue esti- mated to be reduced in calendar year 2018. In total, these programs resulted in $18 million in estimated tax abatements. These include the Workers with Disabilities

Tax Credits, the Employee Training Incentive Program, the Musical and Theatrical Production Credit, the Excelsior Business Program (formerly START-UP NY) Tax Elimination Credit and the Historical Homeowners Rehabilitation Tax Credit.