The Recently Enacted 2011-2012 New York State Budget Gives Business Development Initiatives Additional Tools

Courtland VanDeusen
July 27, 2012 — 1,281 views  
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The provisions included in the budget related to business development are as follows:

1.    Income tax credit benefits under the Excelsior Jobs Program (EJP) are increased, the benefit period is doubled from five to ten years and the annual statewide benefit cap is increased from $250 million to $500 million.  In addition to the increased ten year benefit period, the following increases to tax credits provided under the EJP were included:

a.    The Excelsior Research & Development (R&D) Tax Credit is increased from 10% of the Federal R&D Credit to 50% of the Federal R&D Credit.

b.    The Excelsior Real Property Tax Credit is now based upon the improved value of the property instead of the purchase price before improvements.

c.    The Excelsior Jobs Tax Credit is now based upon projected income tax receipts from each newly created job rather than up to $5,000 per new job.

d.    The budget also includes various administrative changes to the program to improve the efficiency and effectiveness of the program.

2.    Creation of Regional Economic Development Councils in order to act as one-stop shopping for all state-supported economic development and business assistance programs.

3.    Creation of the Recharge New York Power Program, which will enhance the current Power for Jobs Program by providing low-cost hydropower and market power to businesses expanding and/or creating jobs within New York State.

4.   Creation of New Market Tax Credits, which authorize the Empire State Development Corporation to finance up to $30 million in federal New Market Tax Credits in order to support job creation and development efforts in low-income communities within New York State.

Courtland VanDeusen

Lumsden & McCormick

Cory, a principal in our tax department is an experienced tax professional responsible for development and implementation of tax engagement strategies. He devotes his professional time to tax matters in the areas of business development credits such as the Excelsior Jobs Program, Empire Zone and the Renewal Community Zone, compliance, research, transaction structuring and family planning. Cory has experience in all areas of U.S. Federal and New York State Taxation. He has been with Lumsden & McCormick since 2001 and is a graduate of Niagara University. Cory is a member of the American Institute of Certified Public Accountants, New York State Society of Certified Public Accountants, and the Niagara University Accounting Advisory Board. He is Treasurer of Big Brothers, Big Sisters of Niagara County, Inc. You can reach Cory at [email protected]