Automatic Data Processing, Inc. · NASDAQ:ADP
Automatic Data Processing — New York Credits & Incentives Update webcast (July 2010)
27 slides from Automatic Data Processing's conference presentation, Jul 22, 2010
Slide 1: New York Credits & Incentives Update
New York Credits & Incentives Update Excelsior Jobs and Other Developments An ADP Webcast Thursday, July 22, 2010 12-1pm Eastern 1 ©2010 Automatic Data Processing, Inc. Proprietary and Confidential Information.
Slide 2: Housekeeping Items
Housekeeping Items One of series of complimentary ADP webinars Lasts for 60 minutes Ends at 1pm Eastern time Q&A during last 10 minutes Complete our online survey at the conclusion of today’s webinar CPE certificates emailed within 30 days and earn a chance to win an ADP TotalPay card prel
Slide 3: CPE Credit
CPE Credit Are you applying for CPE credit for today’s webinar? A. Yes B. No C. Not applicable NASBA (National Association of State Boards of Accountancy) requirements for receiving CPE Credit: •Log in from same e-mail address that you used to register •Stay for the full hour •Answer 3 out of 4 po
Slide 4: Agenda
Agenda About ADP Meet Today’s Guest Panelists • Dan Breen & Richard Eads Sunset of NY’s Empire Zone Program New Excelsior Jobs Program Compare & Contrast the Two Programs Other Developments Questions & Answers 4 ©2010 Automatic Data Processing, Inc. Proprietary and Confidential Informa
Slide 5: About ADP
About ADP Experts in automating back-office processes Listed on NASDAQ: ADP Fortune 300 company Experts in automating business processes such as payroll, benefits administration, and tax credits & business incentives so that organizations can stay focused on the core business 60 years of exp
Slide 6: Why Businesses Choose to Work with ADP
Why Businesses Choose to Work with ADP Proven track Record. Unmatched Breadth of Solutions. Financial Resources. Global Reach. Half a Million Clients. 6 ©2010 Automatic Data Processing, Inc. Proprietary and Confidential Information.
Slide 7: Today's Guest Speakers
Today’s Guest Speakers Dan Breen Richard Eads ADP, Inc. ADP, Inc. 7 ©2010 Automatic Data Processing, Inc. Proprietary and Confidential Information.
Slide 8: Polling Question #1
Polling Question #1 Is your company planning to expand in, or relocate to, New York State within the next three years? A. Yes B. No C. Don’t Know NASBA (National Association of State Boards of Accountancy) requirements for receiving CPE Credit: •Log in from same e-mail address that you used to reg
Slide 9: The Empire Zone Program
The Empire Zone Program Sunset on June 30 New York’s “flagship” economic development program since 1986 • Originally established as “Economic Development Zones” • Renamed “Empire Zones,” with expanded benefits, in 2000 • Provides comprehensive series of tax credits (some refundable) The program
Slide 10: Excelsior Jobs: New York's New Economic Development Tool
Excelsior Jobs: New York’s New Economic Development Tool Signed by Governor Paterson on June 25, the new program took effect on July 1 Excelsior Jobs, like Empire Zones, provide a comprehensive series of tax credits • Jobs Tax Credit • Investment Tax Credit • Research & Development Tax Credit •
Slide 11: Excelsior Jobs vs. Empire Zones
Excelsior Jobs vs. Empire Zones Comparative Summary - Features Excelsior Jobs Empire Zones Varies but up to duration of zone; some Duration Participation extends for five years. credits extend for up to ten years. The QEZE Real Property Tax Credit is fully refundable. 50% of Wage and Refundability A
Slide 12: Excelsior Jobs vs. Empire Zones
Excelsior Jobs vs. Empire Zones Comparative Summary - Programs Excelsior Empire Comments Jobs Zones Maximum $5K credit (vs. $3.5K Empire Zone Jobs/Wage Tax Credit maximum) based on wages paid. 2% of investment basis. Significant decrease Investment Tax Credit from Empire Zone (19% max). 10% of Feder
Slide 13: Excelsior Jobs: Qualification Tracks
Excelsior Jobs: Qualification “Tracks” Job Growth Track RPTC: RPTC: Jobs/ITC/R&D Credits: Strategic Industry Minimum Jobs Minimum Jobs Minimum Jobs Investment Zone Significant Investment Agriculture & Scientific R&D 10 10 20 Manufacturing 25 25 50 Financial Services (Data Center/Back Office) 100 1
Slide 14: Polling Question #2
Polling Question #2 Excelsior Jobs benefits are refundable. Is your company unable to use New York or other state credits due to low tax liabilities? A. Yes B. No C. Don’t Know NASBA (National Association of State Boards of Accountancy) requirements for receiving CPE Credit: •Log in from same e-ma
Slide 15: Excelsior Jobs: Jobs Tax Credit
Excelsior Jobs: Jobs Tax Credit The Excelsior Jobs Program offers a credit of up to $5,000 per new job to cover a portion of the associated payroll cost. Incremental Minimum Maximum Wage Levels Credit % Credit Credit $0-50K 5% $0 $2,500 $50-75K 4% $2,500 $3,500 $75-187.8K 1.33% $3,500 $5,000 15 ©2
Slide 16: Excelsior Jobs: Investment Tax Credit
Excelsior Jobs: Investment Tax Credit The Excelsior Investment Tax Credit (“ITC”) is equal to 2% of qualified investments made during the five year eligibility period. This represents a significant decrease from the Empire Zone regime, which provided a 10% ITC that could increase to a maximum of
Slide 17: Excelsior Jobs: Research & Development Tax Credit
Excelsior Jobs: Research & Development Tax Credit The Excelsior Research & Development (“R&D”) Tax Credit is equal to 10% of the Federal R&D Credit for qualifying investments. 17 ©2010 Automatic Data Processing, Inc. Proprietary and Confidential Information.
Slide 18: Excelsior Jobs: Real Property Tax Credit
Excelsior Jobs: Real Property Tax Credit The Excelsior Real Property Tax Credit is a credit based on real property taxes assessed and paid on certain properties. • Facilities located within Investment Zones • Designated Regionally Significant Projects • Designated “significant investments” where i
Slide 19: Excelsior Jobs: Other Insights
Excelsior Jobs: Other Insights Application Process: • Apply through Empire State Development (“ESD”) with expansion plans. • ESD will calculate maximum credits and enter into formal agreement with applicant. Reporting Requirements: • An annual report will be due within 30 days of the end of the
Slide 20: Polling Question #3
Polling Question #3 Do you expect that the Excelsior Jobs program will be of benefit to your company? A. Yes B. No C. Uncertain NASBA (National Association of State Boards of Accountancy) requirements for receiving CPE Credit: •Log in from same e-mail address that you used to register •Stay for th
Slide 21: Credit Deferral Legislation
Credit Deferral Legislation The Governor and Legislature have reportedly agreed to include “credit deferral” legislation in the FY11 budget. • Taxpayers with more than $2 million in aggregated business tax credits for tax years 2010, 2011 and 2012 would be required to defer the amounts above $2 mi
Slide 22: Alternative Economic Development Proposals
Alternative Economic Development Proposals New York will elect a new Governor in November, 2010 Andrew Cuomo, the State’s Attorney General and a leading candidate in the election, has proposed an alternative to both the Empire Zone and Excelsior Jobs programs Cuomo proposes that New York’s pri
Slide 23: Other New York Opportunities
Other New York Opportunities JOBS Now Grant Programs Industrial Development Agencies (IDA) • Provides Sales and/or Property Tax Relief • Requires entry into sale/leaseback transaction Local Property Tax Abatements Tax Credits (e.g., Qualifying Investments, R&D, “Emerging Technologies,” Brown
Slide 24: Polling Question #4
Polling Question #4 Has your company been claiming, or is it eligible to claim, Empire Zone benefits? A. Yes B. No C. Don’t Know NASBA (National Association of State Boards of Accountancy) requirements for receiving CPE Credit: •Log in from same e-mail address that you used to register •Stay for t
Slide 25: Questions & Answers
Questions & Answers Dan Breen Richard Eads ADP, Inc. ADP, Inc. 25 ©2010 Automatic Data Processing, Inc. Proprietary and Confidential Information.
Slide 26: Thank You for Joining Us Today
Thank You for Joining Us Today… For information on ADP products or services referenced during today’s webinar: • Phone 800-CALL-ADP • Visit www.adp.com For a complete listing of ADP webinars and webinar recordings – go to: • adp.com | tools & resources | events | webinars CPE Certificates will
Slide 27: Take a moment to complete our on-line survey
Take a moment to complete our on-line survey… …and you will be entered into a drawing for an ADP Totalpay Card preloaded with $100 and good anywhere that Visa is accepted. 27 ©2010 Automatic Data Processing, Inc. Proprietary and Confidential Information.
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