Relates to the excelsior jobs program and eligible business entities

BILL NUMBER:S6990

Title of bill

An act to amend the economic development law, in relation to the excelsior jobs program and eligible business entities

Purpose of the Bill:

The bill would amend the Excelsior Jobs Program to include corporate headquarters as strategic businesses eligible for the Program.

Summary of Provisions:

Section 1 of the bill would add the definition of "corporate headquarters" in a new subdivision 6 of Economic Development Law (EDL) § 352. The subsequent subdivisions previously numbered 6 through 19 would be renumbered.

Section 2 of the bill would revise renumbered subdivision 15 of EDL 152 to include corporate headquarters under the definition of "regionally significant project."

Section 3 of the bill would insert a new paragraph (h) into EDL 353(1) to include corporate headquarters as strategic business entities eligible for the Program. Subdivisions 3 and 4 of EDL § 353 would be amended to require corporate headquarters to create at least 100 net new jobs, or meet the existing requirements of subdivision 4, in order to participate in the Program.

Existing Law:

Corporate headquarters are not currently eligible to participate in the Excelsior Jobs Program.

Prior Legislative History:

This is a new bill.

Statement in Support:

Under the current law, corporate headquarters are not included as an eligible strategic business for purposes of the Excelsior Jobs Program. Amending the law to include corporate headquarters is advantageous to the State because corporate headquarters projects, by their very nature, involve high-paying jobs, which would generate tax revenue for the State. In addition, attracting headquarters operations may lead to establishing additional business units as decision-makers become more familiar with the operating climate in the State. The presence of a headquarters may also attract other high-level businesses that interact with management, such as finance, accounting, and management consulting.

The inclusion of corporate headquarters as regionally significant projects is important as well, because this designation makes these projects eligible for the real property tax credit which can prove to be a significant incentive for businesses to locate their operations in the State.

Budget Implications:

This bill will have no fiscal impact on the State because the Excelsior Jobs Program is capped and may lead to additional tax revenue if businesses locate corporate headquarters in the State.

Effective Date:

This bill would take effect immediately.