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Details of Paterson’s Excelsior Jobs plan released
The Business Review (Albany) - by Adam Sichko

New York Gov. David Paterson published details of the state’s new business incentives on Friday—which business lobbies immediately bemoaned.

The new Excelsior Jobs program will take the place of the state’s signature Empire Zone tax credits, which shut off to new applicants after June 29. The Excelsior Jobs program, not as broad as Empire Zones, was negotiated between Paterson’s administration and Democrats in the Legislature.

Empire Zones supplies tax credits to more than 8,000 businesses, ideally in poorer urban areas, in exchange for pledges to retain and create jobs. Critics hammered the maligned program in recent years as a runaway expense and corporate welfare, giving money to companies that actually did little to generate jobs.

Paterson hinted at his new program earlier this week. The Assembly approved the new program in a Friday afternoon vote; the state Senate will vote on the bill on June 21.

“The Excelsior Jobs program is the right initiative at the right time,” Paterson said. “We were able to build the best possible program to facilitate job creation and economic growth.”

Paterson said Empire Zones were “continually hampered by abuses, lack of results and skyrocketing costs.”

Excelsior Jobs will provide tax credits to businesses to address payroll, facility investments, R&D work and property taxes—only after a company has actually made those investments.

Companies will be able to receive the new credits for five years, as opposed to the 10-year period offered in Empire Zones.

Excelsior Jobs benefits will be limited to specific sectors, such as manufacturing, financial services, agriculture, distribution and other sectors with “significant potential for private-sector economic growth,” as decided by the state.

Companies will need to create and maintain a minimum number of new jobs, standards that did not exist in Empire Zones.

The new program bans law firms, restaurants, bars and retail shops from participating—all businesses that received Empire Zone credits. Business lobbies did support tailoring the program to select sectors.

But overall, business lobbies warn Excelsior Jobs is a shell of the incentives Empire Zones offered.

In its first year, the state will spend $50 million on its Excelsior Jobs incentives. The state spends $550 million a year on Empire Zones.

Excelsior Jobs spending will peak at $250 million, a level that is 45 percent of Empire Zone spending...................>>>>................>>>>..............http://albany.bizjournals.com/albany/stories/2010/06/14/daily52.html?surround=lfn