Increases the excelsior research and development tax credit maximum from six to twenty percent for qualified research and development expenditures attributable to activities conducted in New York state.
Summary
This bill amends the Economic Development Law to increase the maximum Excelsior research and development tax credit for eligible participants in the Excelsior Jobs Program. For most projects, the cap on the credit would rise from 6 percent to 20 percent of qualified research and development expenditures attributable to activities conducted in New York State. The bill leaves in place lower caps for certain project categories: 8 percent for green projects or Green CHIPS projects, and 7 percent for semiconductor supply chain projects.
The bill also clarifies that the credit is tied to the participant’s federal research and development tax credit, with New York expenditures used to calculate the state credit. If the federal R&D credit has expired, the bill directs that the credit be calculated as though the 2009 federal structure and definition were still in effect. It further states that New York research and development expenditures, including salary and wage expenses for R&D-related jobs in the state, may be used as the basis for both the Excelsior R&D tax credit and the qualified emerging technology company facilities, operations, and training credit under the Tax Law.
Impact
The bill would significantly expand the potential value of the Excelsior research and development tax credit under the Economic Development Law, increasing the maximum subsidy available for qualifying in-state R&D activity. This could reduce tax liability for participating businesses and strengthen incentives for companies to locate or expand research operations in New York, especially in technology, manufacturing, green energy, and semiconductor-related sectors. It also affects how qualifying expenditures are counted for both the Excelsior program and the qualified emerging technology company credit.
Sentiment
No committee transcript or recorded vote information was provided, so there is no direct evidence of debate or formal support/opposition in the available materials. Based on the bill text and caption, the measure appears pro-business and pro-investment, aimed at encouraging research activity and job creation in New York. The structure of the bill suggests a generally favorable policy orientation toward economic development and targeted industry growth.
Contention
The main policy issue is fiscal and competitive: increasing the credit cap from 6 percent to 20 percent could substantially increase state tax expenditures, which may raise concerns about revenue loss or the effectiveness of tax incentives. Any contention would likely center on whether the larger subsidy is justified by expected gains in in-state R&D, jobs, and long-term economic development. The bill also preserves lower caps for green, Green CHIPS, and semiconductor supply chain projects, which may reflect an effort to target incentives differently across sectors.
Enacts the "empire innovation act"; provides that a participant in the excelsior jobs program shall be eligible to claim a credit equal to the portion of the full cost of the participant's research and development expenses incurred that relates to the participant's research and development expenditures in New York state during the taxable year; provided however, if the participant receives a federal research and development tax credit calculated on the full cost of the participant's research and development expenses that relates to the participant's research and development expenditures in New York state during the taxable year, then said participant shall only be eligible to claim a credit equal to fifty 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.
Authorizes the New York State Energy Research and Development Authority to loan money to utility companies for purposes of capital expenditures; authorizes the issuance of bonds.