New York Credits and Incentives in 2024-2025 Budget
By Barry Halpern, Partner, Tax & Business Services & Lisa Haime, Senior Manager, Tax & Business Services
On April 20, 2024, Governor Kathy Hochul signed the more than $235 billion 2024-2025 Fiscal year budget package. The budget includes creating, extending, and enhancing various credits and incentives for businesses within targeted industries, hiring targeted employees, or experiencing growth, economic development, and recovery. Some of these credits are temporary and administered on a “first come, first serve” basis until funding has been absorbed.
The following is a brief overview of some credits and incentives within the 2024-2025 budget.
Commercial Security Tax Credit Program
The Commercial Security Tax Credit Program is designed to support small businesses in enhancing their security measures. Here’s a brief overview of the program:
- Eligibility: Small businesses with 50 or fewer employees operating physical retail locations in New York State can apply. The program is mainly geared towards businesses that incur costs for retail theft prevention measures. Businesses must also participate in a community anti-theft partnership.
- Qualified Expenses: Businesses must have expenses that surpass $4,000 for firms with 25 or fewer employees or $6,000 for those with more than 25 employees per New York retail location.
- Tax Credit Benefits: Eligible businesses may receive a $3,000 credit per retail location in New York State for taxable years beginning after January 1, 2024, and before January 1, 2026.
- Application Process: Businesses must apply by October 31st of each year, with evidence of eligibility and certification of participation in a community anti-theft partnership.
- Record Maintenance: Businesses must keep all pertinent records for at least three years during their participation in the program.
- Annual Cap: The program has a yearly cap of $5 million in tax credits issued.
Newspaper and Broadcast Media Jobs Program
The program’s purpose is to provide financial support and incentives to businesses operating within the newspaper and broadcast media industries in New York State. It aims to sustain a productive and effective industry by recognizing the importance of these media sectors to the public and economy.
- Eligibility: Open to independently owned print and broadcast media businesses operating predominantly within the newspaper publishing or broadcast media sectors, which also carry media liability insurance.
- Benefit: Eligible businesses can avail themselves of two main benefits under the program:
- New Job Creation Component: This component offers a tax credit of $5,000 per net new job created at eligible businesses within the specified industries.
- Existing Jobs Component: This component provides a tax credit to support the costs related to the retention of existing jobs. The credit is calculated at 50% of the annual wages of an eligible employee, up to $50,000 in wages per employee annually.
- Credit Limits: A business entity may claim up to $20,000 for the New Job Creation credit and up to $300,000 for the Existing Jobs credit.
- Timing: The program will take effect for tax years beginning on or after January 1, 2025, and ending before January 1, 2028. Businesses must adhere to application and approval processes and meet specific eligibility criteria to benefit from it.
Affordable Neighborhoods for New Yorkers Tax Incentive Program
Created to support the creation of affordable housing in New York City.
- Exemption from Real Property Taxation: Eligible new multiple dwellings receive exemptions from real property taxation, excluding assessments for local improvements.
- Duration of Benefits: Depending on the project type, benefits can last for 10, 20, 35, or 40 years.
- Affordable Housing Units: Projects must include a certain percentage of affordable housing units to qualify.
- Eligibility: Projects must meet specific criteria, including the number of units, affordability options, and commencement and completion dates.
- Construction Work Requirements: Projects with 100 or more units must comply with specific wage requirements for construction employees.
- Building Service Employees: Prevailing wages must be paid to building service employees throughout the benefit period.
For additional information regarding the Credits and Incentives within the New York budget and their impact on your business, please contact Barry Halpern at [email protected] or your Marcum State and Local Credits and Incentives professional.
