The New York State Senate today passed the 2012 NEW JOBS-NY Job
Creation Plan. The Senate’s comprehensive plan will help create thousands
of new private sector jobs by delivering tax relief to small businesses and
manufacturers, reducing energy costs, and enacting major fiscal reforms to
make New York State more economically competitive.
“New York is headed in the right direction, but we have to do even
more so the job creators can put more New Yorkers to work,” Senate Majority
Leader Dean G. Skelos said. “The business tax cuts we are proposing would
put more money back into the pockets of small businessmen and women so they
can invest, grow and hire more employees. Senate Republicans are taking
action to stoke the fires of job growth so we can really get our economy
moving. This is absolutely the right time to cut taxes and create jobs.”
Senate Republicans first approved a small business tax cut plan as
part of its budget resolution in early March. However, the tax cuts were
not included in the enacted 2012-13 state budget.
The Senate Republican’s NEW JOBS-NY plan is supported by business
organizations across the state, including the Business Council of New York,
Unshackle Upstate, the Manufacturers Association of Central New York
(MACNY), the National Federation of Independent Businesses, the Long Island
Association and the Long Island Business Council. Highlights of the plan
include:
· Eliminating Taxes on New York Manufacturers: The plan would spur
creation of thousands of manufacturing jobs by eliminating income
taxes paid by manufacturers over a three year period ($495 million in
tax relief).
· 20 Percent Corporate Tax Cut for Small Businesses: This cut in the
corporate tax rate will save nearly 200,000 small businesses $49
million.
· 10 Percent Personal Income Tax Credit for Small Businesses: This tax
cut would save 800,000 small businesses $80 million.
· Significant Energy Tax Cut: The legislation accelerates the
phase-out of the 500 percent energy tax hike Senate Democrats
previously approved in 2009.
· New Incentives for Each New Job Created: The bill includes new job
creating incentives that would give businesses a tax credit of up to
$5,000 for each new job they create; up to an $8,000 credit if the
new job goes to someone on unemployment; up to a $10,000 credit if a
business hires a returning military veteran.
· Help for New York’s Small Brewers: The plan includes a new Production
Credit and Label Registration Credit for New York’s vibrant craft
brewing industry.
· A new “angel investor” tax credit to encourage investments in
start-up businesses.
The overall NEW JOBS- NY job creation plan also includes fiscal
reforms to improve New York’s business climate. The plan includes a state
spending cap; a super-majority vote provision to make any future tax
increases more difficult; and new regulatory reforms to reduce red tape for
businesses.
Job-Creating Tax Cuts:
The 2012 NEW JOBS NY job creation bill (S7448) passed today includes
the following provisions:
ELIMINATE TAXES ON MANUFACTURERS: Over a three-year period, the legislation
would provide manufacturers throughout New York State with $495 million in
tax relief – phasing out the taxes they pay under the State’s Corporate
Franchise Tax and Personal Income Tax. This unprecedented step would
immediately and dramatically improve the competitiveness of New York’s
manufacturers, create thousands of new jobs, and provide a major economic
boost to communities across the state.
“By reducing and eliminating burdensome business taxes, manufacturing
companies can grow and create private sector jobs, which will generate
revenue for New York State. Job creation has always been, and will
continue to be my number one priority,” said Senator John A. DeFrancisco,
Chairman of the Senate Finance Committee.
20 PERCENT CORPORATE TAX CUT FOR SMALL BUSINESSES: The plan would provide
small businesses with a 20 percent reduction by cutting the “small business
corporate tax rate” from 6.5 percent to 5.2 percent. It would also
virtually eliminate the fixed dollar minimum for small businesses. This
$49 million tax cut, which would impact almost 200,000 small businesses,
would make our state more competitive and help create thousands of new
jobs.
SMALL BUSINESS JOBS CREDIT: The plan would also provide a 10 percent tax
credit for about 800,000 small businesses that have at least one employee,
have business income of less than $250,000, and that file under the
personal income tax. This tax credit would help encourage new job creation
by saving small businesses $80 million.
“Small businesses provide the bedrock for a healthy economy,” Senator
Jim Alesi (R-C- I, Perinton), Chairman of the Senate Committee on Commerce,
Small Business and Economic Development, said. “Cutting taxes for New York
State’s small businesses will help provide job opportunities for tens of
thousands of people, helping to energize our economy and improve the
quality of life here in the Empire State.”
ELIMINATE SENATE DEMOCRATS 500 PERCENT ENERGY TAX HIKE: In 2009, Senate
Democrats hurt New York’s economy by enacting a dramatic 500 percent hike
in the 18a assessment that New Yorkers pay on utility bills. This
disastrous tax hike took $1.7 billion out of the economy and chased
businesses and jobs out of New York.
The new Energy Tax Cut would accelerate the phase-out of this huge tax hike
by one year, from 2014 to 2013. By cutting taxes earlier than previously
scheduled, we will deliver $522 million in relief and give a major boost to
New York’s economy.
“I’m extremely pleased that the job-creation plan eliminates the 500%
energy tax hike a year early, a tax that was enacted in 2009 when the
Senate Democrats were in the majority,” said Senator George D. Maziarz.
“The early elimination of this enormous burden on the economy and local
businesses is necessary and will bring a large boost to the state. I was
against the installation of this tax from the beginning and I’m glad that
we will finally get rid of it and bring relief to local businesses.”
BREWER’S PRODUCTION CREDIT AND LABEL REGISTRATION CREDIT: In response to a
recent NYS Supreme Court order which hurt a number of New York’s craft
brewers, the legislation would allow a credit to small brewers for the
first 200,000 barrels of beer brewed in New York, and a $150 credit for
each beer label registered with the NYS Liquor authority (only for beer
labels where less than 1,500 barrels are produced annually in New York.)
“While other industries have suffered and jobs have been lost, the
New York craft brewing industry has thrived and expanded over the past
decade. As the result of a recent Supreme Court ruling, an unexpected and
significant tax burden has been recently placed on New York brewers. This
decision unfortunately struck down an important excise tax exemption for
our craft breweries. I’m pleased that our efforts have been included in the
“New Job- NY” legislative package that will grow jobs in our state,” said
Senator Lee Zeldin (R, C, I- Shirley).
“We need to enact this credit to help the rapidly-growing craft
brewing industry,” Senator Joe Griffo (R-C, Rome) said. “The brewing
industry is an important segment of the local economies in many areas of
the state, including Matt’s brewery in Utica. This tax credit would
address the problems created by a recent court decision and enable craft
brewers to continue to grow and create more jobs.”
ENCOURAGE JOB-CREATING INVESTMENT IN START-UPS: The legislation includes a
new “angel investor” tax credit program to help ensure that promising
business start-ups have access to the investment capital they need to grow
and expand. This provision would create an “Angel Investor” program with a
pool of $7 million and also create a 35 percent angel investor credit for
those businesses that donate funds to the pool.
“This bill will allow for intelligent investment that will help
invest in small, and medium technology companies that are creating the
majority of today’s jobs. This policy change will help New York continue to
create more quality jobs,” Senator Robach said.
STRENGTHEN THE FILM PRODUCTION INDUSTRY: The legislation provides support
for New York’s film production industry by increasing the post-production
tax credit from 10 percent to 30 percent.
“The inception of the film tax credit in New York has sparked
significant job growth and has created substantial tax revenue for New
York City and State. As we continue to work to get the economy moving in
the right direction, it is important that New York State remain a viable
location for the television and film industries. We cannot afford to have
New York sets created in Hollywood,” Senator Marty Golden (R-C-I, Brooklyn)
said.
“Providing a film production tax credit is another means of keeping
film production in New York state, which provides jobs, and stimulates the
economy,” said Senator DeFrancisco.
“HIRE-NOW-NY” TAX INCENTIVE: Our Hire-Now-NY proposal includes direct
incentives to encourage businesses to begin expanding their workforce
again. For each new job they create, a business would get a tax credit of
up to $5,000.
“With the state budget now passed, jump-starting New York’s economy
and getting people back to work are at the top of the to-do list. The
Hire-Now-NY tax incentive will spur businesses to expand their workforce.
Under the plan, a business can qualify for a tax credit of $5,000 for each
new job created; up to an $8,000 credit if the new hire goes to someone on
unemployment. As part of the “New Jobs-NY” Job Creation Plan, I am
confident the Hire-Now-NY incentive will create jobs for many New Yorkers,”
said Senator Michael Ranzenhofer (R-C-I, Amherst).
MOVING FROM UNEMPLOYMENT TO THE WORKPLACE: The Hire-Now-NY tax incentive
would increase to up to $8,000 if the employer hires someone who is
currently unemployed.
“HIRE-A-VET” ENHANCED CREDIT: The Senate job creation plan would provide
an enhanced tax credit of up to $10,000 to any business that hires a
veteran returning home from military service.
“We must strengthen employment opportunities for our veterans” said
Senator Greg Ball who currently Chairs the Senate Committee on Veterans,
Homeland Security and Military Affairs. “This bill will provide a small
measure of recognition and support to the men and women who have put their
lives on the line to protect our freedom. New York State needs to do
everything in its power to provide quality employment opportunities to
these heroes returning to civilian lives.”
“I have talked with many veterans here locally and throughout the
state, and what I am hearing from them is that they are returning home from
serving our county to a struggling job market and no jobs,” said Senator
Mark Grisanti (R-Buffalo). “I plan to fix this; there has been enough
grandstanding around the issue. This legislation provides relief to
employers and opportunities for hard working veterans to return home with a
job.”
Taxpayer Protection, Fiscal Responsibility and Regulatory Reform
The overall 2012 NEW JOBS-NY Job Creation Plan also includes key
fiscal reforms to make New York State more economically competitive. These
bills include:
STATE SPENDING CAP: The Senate today passed state spending cap legislation
(S716) sponsored by Senator Joseph Robach (R-C-I, Rochester), that would
limit the growth of state operating funds spending to no more than the
average rate of inflation of the three previous calendar years. In
addition, the bill would increase the maximum capacity of the state’s rainy
day reserve from 3 percent of General Fund spending to 10 percent of
General Fund spending. This bill would enhance the state’s fiscal
responsibility and provide a better environment for economic growth and job
creation.
“Capping the state budget will add fiscal sanity and responsibility
to the state budget process and will avoid putting more of a burden on
working men and women and families,” Senator Robach said.
CONSTITUTIONAL AMENDMENT TO HELP PREVENT TAX INCREASES: This constitutional
amendment would require a two-thirds “super majority” vote, rather than a
simple majority, for any tax increase – making it far more difficult to
raise taxes (S1919A, Senator Lee Zeldin, passed Senate 1/19/11).
ELIMINATING JOB-KILLING REGULATIONS: Our plan includes repeal of the
annual notification provisions of the “Wage Theft Prevention Act of 2010” –
a duplicative and costly mandate that the Senate Democrats imposed on
employers statewide. This job-killing measure is a perfect example of
unnecessary red tape that does nothing to help employees, while also
hurting businesses and our economy. (S6063A / passed Senate 2/29/12)
MAKING STATE AGENCIES MORE RESPONSIVE: For years, many small business
owners have expressed concern about unresponsive state agencies –
especially when it comes to the permitting process. When someone applies
for a professional license or a permit, they should not be left hanging for
months on end. The Honesty in Permit Processing Act (S2461, passed Senate
3/13/12) requires agencies to publicly disclose their response times, and
to tell applicants how long they can expect to wait for approval. If
approval takes more than 134 percent of the average processing time,
applicants would get a refund. This will improve New York’s economic
climate, empower taxpayers, and help break through bureaucratic logjams.
Heather Briccetti, President and CEO of The Business Council of New
York State, Inc. said: “We applaud the Senate Majority’s continued focus on
reducing the cost of doing business, lowering the state’s business burden
on business, and reducing the cost of creating jobs. This package focuses
on key sectors and emerging industries, and will promote new private sector
investments
and critically needed new jobs.”
Mike Durant, State Director of the National Federation of Independent
Business, said:
“The past few weeks have seen continuous discussion in the other house on
issues that not only harm small business, but hurt those that seek
meaningful employment. This legislation is aimed at real problems and
reaffirms the Senate Majority’s commitment to revitalizing our economy and
helping spur new and innovative economic development opportunities.
Simply, this is another step in the right direction for New York. From
helping reduce taxes on manufacturers to an accelerated reduction on
stifling energy costs, Majority Leader Skelos and his colleagues are
continuing to put the needs of New York’s unemployed and small business
owners first.”
Kevin Law, President and CEO of the Long Island Association said: “We
applaud Majority Leader Skelos and his New Jobs-NY Job Creation Plan
because it will stimulate economic growth, cut taxes, create jobs and bring
regulatory relief to create a more business-friendly climate for our state
and region.”
Brian Sampson, Executive Director of Unshackle Upstate, said:
“Unshackle Upstate supports the ‘2012 New Jobs-NY Job Creation Plan’
recently introduced by Senate Majority Leader Skelos. Our organization has
consistently called for much-needed tax cuts for the businesses and
taxpayers across Upstate and we are particularly pleased with the Senate’s
commitment to reducing taxes on our manufacturers and eliminating the
onerous, hidden 18a energy surcharge a year earlier than expected. After
weeks and months of endless talk about raising the cost of business in New
York, we now call on the Assembly to introduce and pass this bill to help
boost private sector job growth, get our economy back on track, and
demonstrate to the world that we are truly serious about changing the
reputation of the state.”
MACNY President Randy Wolken said: “For years, MACNY has stated the
way Albany treats its manufacturing community will have significant impact
on the state’s overall well being, and I am pleased to see the Senate
Majority has listened and acted on our message. Eliminating costly and
burdensome taxes including the corporate franchise tax will allow for the
state’s manufacturing community to invest their dollars in more productive
and necessary areas to help foster statewide growth: supporting and adding
good paying family supporting jobs, making significant capital investment
in their businesses and investing dollars back into their communities.
This is a big day for manufacturers statewide, and I applaud the Senate
Majority for their leadership on this significant investment in our state’s
manufacturing community.”
Richard Bivone, Nassau Chairman, Long Island Business Council, said:
“Creating jobs in New York for small businesses keeps New Yorkers working
and fuels our local economies. I commend Senator Skelos and the Republican
Majority in the state Senate for making this a priority during this
legislative session.”
“The Senate Republican’s 2012 job creation plan will build on the
achievements of last year when we partnered with the Governor to make state
government function again and take significant steps to revitalize our
economy and create new jobs,” Senator Skelos said.
Over the past year and a half, the Senate Majority has successfully
taken a number of key steps to improve New York’s business climate to help
create jobs:
> Passing two consecutive on-time state budgets;
> Closing approximately $13 billion budget deficits — without raising
taxes or fees in the budget;
> Reducing state spending for two consecutive years;
> Cutting taxes on small businesses;
> Enacting a landmark property tax cap;
> Approving the UB2020/SUNY 2020 economic development plan;
> Repealing the MTA payroll tax for 80 percent of the business that paid
it;
> Enacting the Recharge-NY power-for-jobs plan and the Power-NY (Article X)
power plant siting law;
> Cutting taxes for middle class families and reducing tax rates to the
lowest level in more than half a century; and
> Helping to launch the NY-Works initiative to revitalize New York’s
infrastructure.