Schumer: Renewable Community Tax Credits Helped Pave the Way for 500 New Jobs Coming to Upstate New York; First Niagara's Future Growth Plans Mean Shot in the Arm for Upstate Economy

Press Release

Today, U.S. Senator Charles E. Schumer welcomed First Niagara's plans to bring over 500 new jobs to their locations throughout Upstate New York, in conjunction with major operational expansion plans. Following the announcement in Buffalo, Schumer said that the influx of new good-paying jobs come in addition to 2500 existing positions at First Niagara, establishing it as a major New York employer for years to come . In 2004, Senator Schumer helped secure a Renewal Community (RC) Tax Credit for the Larkin District, in which First Niagara lies. The RC tax credit was designed to stimulate economic development in low income neighborhoods by offering federal tax incentives to businesses and encouraging investment and hiring of residents, all of which paved the way for this massive expansion at First Niagara.

"This is absolutely outstanding, game-changing news for Upstate New York and First Niagara," said Schumer. "These 500 jobs will create huge ripple effects across the state, sustaining middle-class families and providing new economic opportunities for New York. They're going to rev up our economy -- they're our version of the Indy 500. I want to thank First Niagara for their continued investment in communities across the state, and applaud their wise choice to take their workforce to the next level. I'm proud to have fought for the Renewal Community tax credits that are making a real difference, and will do anything and everything I can to help First Niagara continue to thrive and expand in the years to come."

These new positions announced today are in addition to 2,500 other Upstate New York jobs, securing First Niagara's position as a leading economic driver in the state. Schumer notes that in tough economic times, this expansion is truly an instance of strong business strategy and philosophy, and a critical commitment to the region in which it operates.

Schumer also noted that these 500 new jobs demonstrate the success of the Renewal Community program, of which Schumer is an ardent supporter. In 2004, Senator Schumer successfully fought to secure the Renewal Community (RC) Tax Credit for the Larkin District, where First Niagara is located. The Renewal Community program was established in 2002 and is administered by the Department of Housing and Urban Development (HUD). The RC program provides incentives to 40 areas nationwide that are in need of economic redevelopment. These areas receive tax credits such as work opportunity tax credits and welfare-to-work tax credits, as well as tax deductions (on property, revitalization and cleanup costs) for companies located within qualifying census tracts and employing residents of those tracts.

Key incentives aimed at spurring investment in Renewal Communities include zero capital gains on the rate of sales of certain assets held for more than five years, and increased small business expensing (up to an additional $35,000). Benefits to employers in eligible regions also include 15% employment wage credit (first $10,000 in annual income for each worker), and commercial revitalization deductions for taxpayers who revitalize buildings in a Renewal Community.

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