N.Y. Comp. Codes R. & Regs. tit. 5 § 193.1

Current through Register Vol. 46, No. 49, December 4, 2024

Section 193.1 - Calculation of tax credits

(a) The department shall calculate the amount of each tax credit component for which the participant is eligible pursuant to section 355 of the Economic Development Law. The amount of each component shall be separately stated on the certificate of tax credit.

(b) Excelsior Jobs Program Credit Component. A participant in the 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 gross wages and up to 6.85 percent. In a green project, or a Green CHIPS 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. Provided, however, given the transformational nature of Green CHIPS projects, for the year 2022, only the first two hundred thousand dollars of gross wages per job shall be eligible for this credit. Starting in 2023 and each year thereafter, the maximum amount of gross wages per job for a Green CHIPS project shall be adjusted for inflation at an annual amount determined by the commissioner in a manner substantially similar to the cost of living adjustments calculated by the United States Social Security Administration based on changes in consumer price indices or a rate of four percent per year, whichever is higher.

(c) Excelsior Investment Tax Credit Component. A participant in the 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 or a Green CHIPS project, 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 or in the Green CHIPS project as applicable. A participant may not claim both the Excelsior Investment Tax Credit Component and the investment tax credit set forth in section 210-B(1), section 606(a), the former section 1456 (i), or section 1511 (q) 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 21 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. The Excelsior Investment Tax Credit Component may not be claimed until a participant 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 participant, may be claimed in the first taxable year for which the participant 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.

(d) 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 Part.

(e) Excelsior Research and Development Tax Credit Component. A participant in the program shall be eligible to claim a credit equal to 50 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 or a Green CHIPS 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 2009 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 a 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.

(f) Excelsior Real Property Tax Credit Component.

(1) A participant in the program who either qualified as a regionally significant project, a Green CHIPS project that meets the requirements of a regionally significant project under this Title or is located in an investment zone shall be eligible to claim an excelsior real property tax credit for a period of 10 years. In the first year, the credit shall be equal to 50 percent of the eligible real property taxes on the real property comprising the regionally significant project or located in the investment zone.

(2) In the remaining years the credit shall be computed according to the following schedule:

(i) Year two: 45 percent of eligible real property taxes on the real property comprising the regionally significant project or located in the investment zone;

(ii) Year three: 40 percent of eligible real property taxes on the real property comprising the regionally significant project or located in the investment zone;

(iii) Year four: 35 percent of eligible real property taxes on real property comprising the regionally significant project or located in the investment zone;

(iv) Year five: 30 percent of eligible real property taxes on the real property comprising the regionally significant project or located in the investment zone;

(v) Year six: 25 percent of eligible real property taxes on the real property comprising the regionally significant project or located in the investment zone;

(vi) Year seven: 20 percent of eligible real property taxes on the real property comprising the regionally significant project or located in the investment zone;

(vii) Year eight: 15 percent of eligible real property taxes on the real property comprising the regionally significant project or located in the investment zone;

(viii) Year nine: 10 percent of eligible real property taxes on the real property comprising the regionally significant project or located in the investment zone; and

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

(3) For purposes of this credit component, the term eligible real property taxes shall have the same meaning as in section 15 (e) 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.

(4) 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. Provided, however, the actual amount of the excelsior real property tax credit issued by the department for a taxable year cannot exceed the real property taxes assessed and paid by a participant during that taxable year when issued a certificate of tax credit pursuant to section 192.1(e) of this Title.

N.Y. Comp. Codes R. & Regs. Tit. 5 § 193.1

Amended New York State Register June 27, 2018/Volume XL, Issue 26, eff. 6/27/2018

Amended New York State Register December 16, 2020/Volume XLII, Issue 50, eff. 12/16/2020

Amended New York State Register May 3, 2023/Volume XLV, Issue 18, eff. 5/3/2023