Most federal and state tax credits and incentives available to companies go unclaimed due to the cost, complexity and time intensive nature of their administration. The potential dollars saved simply do not justify the risk of undertaking the laborious effort involved.
A strategic partnership with us allows companies to take advantage of Freed Maxick’s leading edge technology and its years of processing experience to decrease their operating costs and increased cash flow.
Federal and New York State Tax Credits
Federal Tax Credits:
A variety of federal tax credits are available to businesses. Some are based on hiring members of targeted groups or operating in certain locations. Others are more widely applicable. The following is a list of the most common Federal tax credits available today:
- Credit for employer paid FICA on tips
- Credit for small employer pension plan start-up costs
- Disabled access credit
- Empowerment zone credits
- Energy Efficient Commercial Building Tax Deduction | 179D
- Federal Renewal Communities
- Foreign tax credit
- Fuel tax credit
- Historic tax credit
- Green Building Tax Exemption
- Increasing research activities credit
- Indian employment credit
- Low income housing credit
- New Markets credit
- Work opportunity credit
New York State Tax Credits:
A variety of New York State tax credits are available to businesses. Some are based on the type of activity or location of the business. Others are more widely applicable. The following is a list of the most common New York State tax credits available today:
- Alternative fuels credit
- Automated external defibrillator credit
- Brownfields redevelopment credit
- Credit for employment of persons with disabilities
- Emerging technology credits
- Employment incentive credit
- Farmers school tax credit
- Investment tax credit
- Liberty zone credits
- New York State Excelsior Jobs program
- New York Historic Rehabilitation credit
New York (NY) State Excelsior Jobs Program
The New York Excelsior Jobs Program provides the following refundable tax credits and program benefits for up to 10 years:
- The Excelsior Jobs Tax Credit: 6.85% of wages per new job created in New York State
- The Excelsior Investment Tax Credit: based on 2% of qualified investments
- The Excelsior Research and Development Tax Credit: 50% of the Federal Research and Development credit capped at 3% of research expenditures conducted in New York State
- The Excelsior Real Property Tax Credit: based on a declining percentage of eligible real property taxes paid. An eligible business must be located in a targeted area or qualify as a regionally significant project
- The Excelsior Jobs Program Utility Rates program authorizes gas & electric providers to offer discounted rates to program applicants
The NY Excelsior Jobs Program provides job creation and investment incentives to businesses within the following targeted industries:
- Creating or expanding back office operations
- Distribution center
- Financial service data center/back office operation
- Scientific research and development
- Software development
Businesses may qualify for four new, fully refundable tax credits. Acceptance in the program is based on filing a successful application with the New York State Department of Economic Development whereby the applicant business makes employment and capital investment commitments to New York State. Tax credits are awarded after the participant business has achieved its commitments.
New York Excelsior Program Eligibility (Job Growth Track)
The following chart provides the required employment necessary to participate in the Excelsior Jobs Program. The business must project the creation of the net new job threshold shown below.
Net New Jobs
Creating or expanding back office operations
Financial service data center or financial services customer back office operation
Scientific research and development
In addition, a targeted industry identified above that retains 25 full-time jobs or a manufacturer retaining at least 10 full-time jobs that has a cost-benefit ratio of 10:1 can participate.
Our New York Excelsior Job Program Services
Freed Maxick offers the following services:
- Consultation regarding program eligibility and benefit planning
- Preparation of tax credit predictions
- Preparation of application for certification
- Preparation of documentation required to obtain the tax credits
- Preparation of tax credit forms necessary to claim the tax credits
Green Building Tax Exemption
The newly enacted Section 470 of the Real Property Tax Law provides a real property tax exemption based on the level of Leadership in Energy and Environmental Design (LEED) certified construction for those municipalities that “opt-in” for new construction beginning on or after January 1, 2013. The exemption varies based on the level of LEED certification as follows:
100% for 6-years, decreasing 20% per year over a 4-year period.
100% for 4-years, decreasing 20% per year over a 4-year period.
100% for 3-years, decreasing 20% per year over a 4-year period.
Specific details regarding the new exemption are as follows:
- The local taxing jurisdiction must adopt the exemption to be effective.
- The exemption applies to both commercial and residential construction projects that meet LEED certification standards for green buildings.
- Construction must begin on or after January 1, 2013 (or later, based on the date of adoption by the local taxing jurisdiction)
- The value of the new construction must exceed $10,000.
- The exemption applies to the increased assessed value as a result of the new construction.