The document discusses New York State's economic development programs and proposes a new program called Excelsior Jobs Program. It notes that the Empire Zones program, which provided tax subsidies, was not targeted towards business attraction and job creation. The proposed Excelsior program would provide tax credits for job creation, R&D, and investments with a focus on high-wage jobs and strategic industries. It outlines industry targets and average wages for different economic regions in New York. The conclusion is that Excelsior would generate more economic growth than past programs by focusing on predictable incentives for growth sectors.

1. New York State
Budget & Jobs Summit
February 23, 2010
Updated Presentation

2. Introduction
• Economic growth is the solution to New
York’s budget and tax problems.
• New York State is not in the game when it
comes to competitive business attraction and
new job incentives.
• Subsidies are generous, but not targeted to
create industry clusters with multiplier
impacts on state and regional economies.

3. After 25 Years, Time for a New Approach
to Economic Development
• Zones sunset in June, although current beneficiaries will get tax
subsidies and municipalities will not lose the benefits of Qualified
Empire Zone Enterprises through the term of existing agreements.
• No new companies will be enrolled, which will save about $25
million in annual additions to program costs.
• The goal of the EZ program was 1980’s urban revitalization not
business attraction and job creation in the innovation economy.

4. Menu of Current & Proposed
NYS Programs
New or Expanded Programs Continuing Programs
and annual funding levels
• Economic Development Fund
• Excelsior Jobs Program ($50M) ($6.18M)
– R&D Tax Credit • Jobs Now (reapprop. $31.1M)
– New Job Incentive • Minority & Women-Owned
– Investment Tax Credit Business Enterprise Lending
• Film Tax Credit ($420M) ($3.4M)
• Legacy Manufacturing Program • Upstate Regional Blueprint
(Existing Appropriations) Program/Downstate
Revitalization Program ($155M
• Seed Capital Fund ($25M) 2008 appropriation.)
• Small Business Revolving Loan • Urban and Community
Fund ($25M) Development Program ($3.4M)

5. Summary of ESD Discretionary Projects 2007 - 2009:
Approved Projects Funded Through EDF, JobsNow,
Downtown Revitalization and Upstate Regional Blueprint
Mohawk Valley
$45M (19.4%)
North
Finger Lakes Central NY Country
$19.1M (8.2%) $21.8M (9.4%)
$18.4M (7.9%)
Capital
Western NY Region
$48.8M (21%) $12.3M (5.3%)
Southern Tier Mid-Hudson
$7.6M (3.3%) $8.8M (3.8%)
Long Island
New York City
$40.5M (17.4%) $10.2M (4.4%)

6. Excelsior Jobs Program:
A Job Creation and Cluster Focus
• New Jobs Incentive: $2,500 - $10,000 credit per job
created.
• Research and Development Tax Credit: 10% based
on the federal R&D credit.
• Investment Tax Credit: 2% credit on depreciable
assets.

7. Excelsior Jobs Program
Advantages:
• Very competitive with other states – up to twice as generous as New
Jersey’s Business Employment Incentive Program.
• Provides for an annual incremental increase of $50 million in economic
development incentives – double that of the Empire Zones Program.
• No geographic limitations; the entire state will benefit.
• Targets high wage jobs and strategic growth industries.
Concerns:
• 50-job eligibility threshold is high for many communities.
• NYS needs a program to write down power costs and encourage capital
improvements for manufacturing retention.
• Property taxes must be dealt with through IDA programs.

8. Economic Development Regions:
Industries Targeted by Excelsior &
Average Wage
Central NY Mohawk Valley North Country
Finger Lakes Biomed:$96k Electronics: $71k Electronics: $89k
Back Office: $34k Back Office: IT: $61k Manufacturing:
Manufacturing: $38k
$34k
$52k
Capital Region
Western NY
Electronics: $89k
IT: $68k
IT: $82k
Biomed: $72k
Southern Tier Mid-Hudson
Biomed: $74k Transportation
Equipment:
Industrial Long Island
Machinery: $80k $68k New York City
IT: $124k Biomed:$69k
Biomed:$123k

9. Conclusions
• 2/3 of EZ subsidies have gone to real estate
development, utilities, retail and professional services
firms that do not generate economic growth. Excelsior
would revitalize communities so that the private
market supports these activities without subsidy.
• To compete, New York needs predictable, “as of right”
incentives targeted to growth sector industries.
• Unlike EZs, Excelsior would provide a high return on
state investment.