Governor Hochul Announces FY 2024 Budget Investments to Grow Jobs and Drive Economic Growth Across New York State

Governor Kathy Hochul today announced transformative investments to support New York's business community and boost the state economy as part of the historic FY 2024 Budget. The Budget raises the New York State Film Tax Credit annual cap to $700 million, establishes the new Technology Innovation Matching Grant Program, and revives the New York City Biotech Tax Credit, among other measures, to drive economic growth across New York State and create good jobs.

"The transformative investments secured in this year's budget will help our state continue to attract innovative businesses, open pathways toward jobs and careers of the future, and better support working families to drive the economy forward," Governor Hochul said. "These key initiatives to boost high-growth sectors, grow and retain jobs in film and the performing arts and build a 21st century workforce will accelerate New York's post-pandemic recovery and solidify our standing as the most worker-friendly and business-friendly state in the nation."

Enhancing the New York Film Tax Credit
The FY 2024 Budget includes provisions to expand and enhance the New York Film Tax Credit — one of the most stable film production incentive programs in the nation. As part of the budget, New York State will raise the film tax credit's annual cap to $700 million, add a capped credit for "above-the-line" salaries alongside the existing credit for "below-the-line" salaries, and restore the credit to 30 percent for qualified expenses. These changes will further increase the program's stability, help attract productions, and provide a boost to New York's film industry, which is one of the largest union employers in New York State.

Film productions that receive New York's Film Tax Credit generate on average more than $9 in economic activity for every $1 awarded in State incentives. The program also supports more than 57,000 jobs, $1.2 billion in private investment and $12 billion in wages each year. Overall, since 2014 1,502 projects have applied to participate in the incentive program, creating over 1.7 million hires and over $35 billion in spending across New York State.

Technology Innovation Matching Grants Program
Currently, more than half of states in the nation have a matching grant program for applicants seeking funding through the federal Small Business Innovation Research and Small Business Technology Transfer programs. New York does not, placing it at a competitive disadvantage in attracting and generating innovation investments.

The FY 2024 Budget adds $6 million for a Technology Innovation Matching Grant Program, first proposed by Governor Hochul in her State of the State address, which will provide application support and technical assistance to New York companies applying for the SBIR/STTR programs — known as "America's Seed Fund" — that incentivize small businesses to engage in research and development with the potential for commercialization. This matching investment will support the growth of small businesses and the development of new scientific advancements, while simultaneously creating jobs and keeping New York competitive with other states for these investments.

Reviving New York City Biotech Tax Credit
New York City previously allowed a tax credit for businesses in the biotechnology industry, but it expired in 2019. The FY 2024 Budget advances legislation to revive a tax credit for emerging biotechnology companies based in New York City to help the city and New York State continue to lead in the fields of biotechnology and life sciences. The legislation authorizes New York City to offer this tax credit for another three years.

New York City has a natural advantage in the bioscience industry, yet it lags behindother cities in the commercialization of new technologies. Recently, Governor Hochul announced investments in Harlem Biospace, Schrödinger, Inc., and Deerfield Discovery and Development's Lab of the Future to expand New York's footprint in the biotechnology and life sciences industries. This tax credit will help New York City meet critical targets needed to develop and commercialize innovative and life-saving breakthroughs in the life sciences.

Youth Jobs Connector
The FY 2024 Budget establishes a Youth Jobs Connector program to provide robust educational support and job training to unemployed and underemployed young people ages 16 to 24 and prepare them for the job market. The program, administered through a multi-agency partnership including Empire State Development, the New York State Department of Labor, the New York State Department of Education, SUNY, CUNY and other relevant agencies, will offer job readiness training and placement services, career counseling, pre-apprenticeships and apprenticeships and other meaningful opportunities to help young people find work.

The Youth Jobs Connector program underscores Governor Hochul's commitment to deepening New York's talent pool and matching New York businesses with the skilled workers they need to participate in a 21st century economy. Last year, as part of the FY 2023 Budget, Governor Hochul established a $350 million Workforce Development Initiative, which included the creation of a statewide Office of Strategic Workforce Development, to help the State better meet the needs of employers.

Expanding the New York City Musical and Theatrical Production Credit
In addition, the FY 2024 Budget extends the New York City Musical and Theatrical Production Credit to continue the state's support for New York's performing arts sector, which was disproportionately impacted by the pandemic. The Budget includes a provision making off-Broadway productions eligible for the credit, extends the application deadline from June 30, 2023, to June 30, 2025, and raises the overall cap on the program to $300 million.

Investing in Local Economies
In addition, the FY 2024 Budget includes more than $1 billion to invest in local economies, including $225 million in grant funding and tax credits for the Regional Economic Development Councils, $100 million each to fund an additional year of the Downtown Revitalization Initiative and NY Forward, $50 million for the RESTORE New York Communities Initiative, $400 million for the NYWORKS Economic Development Fund and almost $200 million for projects that support community growth and enhancement.

Growing New York's Semiconductor Industry
The FY 2024 Budget also supports the new Governor's Office of Semiconductor Expansion, Management, and Integration, first announced in the Governor's State of the State address, to lead the growth of the state's semiconductor industry. The Budget makes $45 million available to GO-SEMI to oversee Micron's historic $100 billion investment for a new megafab in Central New York; develop and advance policies to attract the semiconductor industry and its supply chain; coordinate workforce development and community investments between local, state, federal, and private partners; lead efforts to create, attract and retain the highly skilled workforce needed; and support cohesive development focused on smart growth principles. GO SEMI, led by Empire State Development, will be supported by experts from numerous State agencies and will work in coordination with our federal and local partners and oversee investments in the semiconductor industry, and will shape and implement a broader, national model for maximizing industry and community returns on such public/private partnerships.

Extending the COVID-19 Capital Costs Tax Credit Program
The FY 2024 Budget advances legislation to extend the application deadline for the COVID-19 Capital Costs Tax Credit Program from March 31, 2023, to September 30, 2023, to allow small businesses more time to apply for this tax credit. The program, passed in the FY 2023 budget, supports small businesses that made investments to comply with emergency orders and regulations or to increase public safety in response to COVID-19. More than 1,300 businesses have received more than $15.2 million in funding since the start of the program in 2022.