Making New York Work for Your Business: Leveraging the Excelsior Jobs Program and Relocation Employment Assistance Program

As businesses navigate expansion, hiring, and relocation decisions in New York, two powerful state and local incentive programs stand out as essential tools they should be leveraging: the New York State Excelsior Jobs Program (Excelsior) and the New York City Relocation and Employment Assistance Program (NYC REAP). Both incentives offer substantial, multi-year tax benefits that can reshape financial planning and materially reduce operating costs for companies across a wide range of industries. 

Extended and enhanced as part of last year’s state budget, both programs share a common goal of rewarding businesses that invest in New York’s economy. Each program provides distinct benefits; Excelsior, extended through 2049, targets job creation and investment statewide, while REAP, extended through 2028, incentivizes strategic relocation within New York City. 

Both programs require companies to secure formal pre-approval through a multi-step application process. Awards are at the discretion of the approving agency to make sure incentives are only awarded to businesses that demonstrate a clear commitment to New York’s economic growth. Companies only earn tax credits when they demonstrate, through annual reporting, that they have met their commitments, thereby displaying strong accountability. 

Key Takeaways 

• Businesses looking to expand, hire, or relocate in New York should leverage the New York State Excelsior Jobs Program (Excelsior) and the New York City Relocation and Employment Assistance Program (NYC REAP) to reduce operating costs. 
• Both programs have recently been extended and enhanced. 
  • Excelsior – extended through 2049 
  • REAP – extended through 2028
• Both programs require companies to secure formal pre-approval through a multi-step application process. 

New York State Excelsior Jobs Program 

The Excelsior Jobs Program provides fully refundable tax credits to businesses in strategic industries that meet specific job creation and investment thresholds. 

Excelsior provides up to five tax credits, including: 

• Jobs Tax Credit – up to 6.85% of wages per net-new job 
  • Up to 7% for semiconductor supply chain projects 
  • Up to 7.5% for green and green CHIPs projects
• Investment Tax Credit – 2% of qualified investments 
  • 3% for semiconductor supply chain projects 
  • 5% for green and green CHIPs projects
• Research & Development Tax Credit – 50% of the federal research and development credit attributable to New York activities, capped at 6% of NYS research expenses 
  • The New York State cap increases up to 7-8% for semiconductor or green projects.
• Real Property Tax Credit – available to firms locating in designated distressed areas or those meeting higher thresholds as Regionally Significant Projects
• Child Care Services Tax Credit – up to 6% of net new child care services expenditures for the operation, sponsorship, or direct financial support of a child care services program 

Eligibility 

• Eligible sectors include biotechnology, pharmaceuticals, software development, clean technology/green technology, financial services, manufacturing, agriculture, entertainment, and other strategic industries. 
• Businesses may qualify through either the Job Growth Track or the Investment Track, depending on their operational plans. 
• Job creation thresholds vary by industry, with eligibility starting at as few as five new positions and extending up to 100 for certain sectors. 

New York City Relocation and Employment Assistance Program 

NYC REAP provides refundable business tax credits to companies that relocate jobs into eligible areas of New York City, offering a multiyear benefit tied to the number of eligible employees moved. 

REAP provides: 

• Annual credits of $3,000 per eligible employee, available for up to 12 years
• Credits that are refundable in the year of relocation and the next four years
• Benefits applicable against General Corporation Tax, Business Corporation Tax, Unincorporated Business Tax, and Utility Tax, with a five-year carryforward 

Eligibility 

• Businesses may be eligible if they operated outside NYC or below Manhattan’s 96th Street for at least 24 continuous months before relocating. 
• They must relocate at least one employee into an eligible nonresidential space that satisfies required improvement standards (e.g., Industrial and Commercial Incentive Program eligibility, qualifying renovations, or meeting required construction thresholds). 
• Retail and hotel businesses are generally excluded, though online, mail order, and telephone-based businesses may qualify under the program rules. 

Importantly, REAP rewards relocation, not job creation, meaning companies can qualify even without increasing headcount. This makes REAP especially powerful for businesses consolidating offices, relocating divisions, or shifting operations to more cost-effective neighborhoods. 

Once secured both Excelsior and NYC REAP can significantly improve the return on investment tied to a company’s expansion and relocation strategies. For businesses scaling operations or considering moving operations, these programs can deliver substantial long term tax savings. 

If your organization is contemplating an expansion or relocation to New York, seek out an advisor at the earliest stage who has familiarity with these programs. Connecting with our State and Local Tax team for early guidance is key to understanding and optimizing these credits. Contact us today to discuss how we can support you.