ALBANY -- Governor David A. Paterson today sent to the Legislature a bill creating the Excelsior Jobs program, the centerpiece of the Governor's job-creation agenda. The Excelsior Jobs program will replace the Empire Zones program and will provide tax credits to targeted industries, implement stringent accountability standards and cap program spending to ensure prudent use of taxpayer dollars. The Governor's proposal was submitted to the Legislature as part of the Transportation, Economic Development and Environmental Conservation budget bill.
"New York needs a job creation program that uses taxpayer dollars responsibly, delivers results and helps grow the New Economy industries that will lead the State to fiscal recovery. The Excelsior Jobs Program is the right initiative at the right time," Governor Paterson said. "In reaching out to hundreds of businesses and communities across our State over the last year, we were able to build the best possible program to facilitate job creation and economic growth, and I am pleased to submit this proposal as part of agreed upon legislation."
Governor Paterson's Excelsior Jobs Program will provide job creation and investment incentives to firms in targeted industries such as high tech, biotech, financial services, and manufacturing. Under this program, firms in those industries that create new jobs or make a substantial new investment in New York for five years would be eligible for up to four tax credits, each of which is fully refundable. These tax credits include:
* The Excelsior New Jobs tax credit of between $2,500 and $5,000 per new job to cover a portion of the associated payroll cost;
* The Excelsior Investment Tax Credit valued at two percent of total qualified investments;
* The Excelsior Research and Development tax credit providing a ten percent credit for new investments based on the Federal Research and Development credit; and
* The Excelsior Real Property Tax Credit (RPTC) valued at fifty percent in the first year, decreasing to ten percent in the fifth year for regionally significant projects and/or businesses in targeted industries which locate to distressed areas.
Empire State Development (ESD) will administer the Excelsior Jobs Program. Eligible firms will be designated for program benefits in accordance with rules and regulations announced by ESD, and will be held to stringent accountability standards which will guarantee that businesses deliver on job and economic development commitments. The cost of the program is capped at $50 million per year for new entrants and $250 million annually when the program is fully phased in over a five-year period. Capping the program's costs maintains fiscal affordability and ensures that New Yorkers will realize a positive return on their investment.
Empire State Development Chairman and CEO Dennis M. Mullen said: "Benefits from the Excelsior program are directly tied to job creation, investment and research and development. During difficult economic and financial times like these, the Excelsior Jobs Program is designed to ensure accountability measures are in place, as well as yield viable, tangible results for taxpayers and the State of New York. Not one dollar of benefit will be granted to a firm until it has met its individual commitments. I applaud Governor Paterson and the Legislature for reaching this consensus, knowing it will help strengthen New York State's economy and build the New Economy jobs of tomorrow."
The Excelsior Jobs Program replaces the Empire Zones program, which will sunset on June 30. With the Excelsior Jobs Program, Governor Paterson has developed a new tax credit program that rewards businesses who create real jobs and make substantial new investments. The Empire Zone program was continually hampered by abuses, lack of results and skyrocketing costs. Despite annual Empire Zone expenditures in excess of $550 million, the State's returns of investment have been difficult to quantify, and businesses participating in the programs have not been held accountable.
