senate Bill S3562
(R, C, IP) 58th Senate District
- In Committee
- On Floor Calendar
- Passed Senate
- Passed Assembly
- Delivered to Governor
- Signed/Vetoed by Governor
Phases out the franchise tax on business corporations that are manufacturers over a two-year period; defines terms "manufacturer" and "principally engaged".
TITLE OF BILL: An act to amend the tax law, in relation to phasing out
the franchise tax on business corporations that are manufacturers
PURPOSE OF BILL: This bill would phase out the corporate franchise tax
over a two-year period on businesses which are manufacturers.
SUMMARY OF SPECIFIC PROVISIONS: Section 1- Amends section 208 of the Tax
Law by adding two new subdivisions 20 and 21 to define the terms
"manufacturer" and "principally engaged."
Section 2 -Amends section 209 of the Tax Law by adding a new subdivision
11 to provide that (a) for any taxable year beginning on or after Janu-
ary 1, 2014, a manufacturer shall be exempt from 50% of the corporate
franchise tax and (b) for any taxable year beginning on or after January
1, 2015, a manufacturer shall be exempt from all of the corporate fran-
Section 3 - Effective date.
JUSTIFICATION: According to the most recent Economic Census information
from the U S Census Bureau , in 2002 there were over 21,000 manufactur-
ers employing more than 541,000 employees in New York State.
The manufacturing industry is an important economic engine that fuels
growth in the communities where manufacturers are located and throughout
the state. Manufacturing companies make goods which, when sold, return
wealth to the communities in which they are located. Recent tax incen-
tive programs and opportunities provided by the State have been focused
on attracting new businesses. However, there are tremendous growth
opportunities within the existing manufacturing base It is hence imper-
ative to implement incentives and tax reductions to continue to attract,
grow, and retain manufacturing business.
This measure would solidify New York State's commitment to its manufac-
turers that have operated, invented, and employed workers in the State
PRIOR LEGISLATIVE HISTORY: 2011-2012 S.4172
FISCAL IMPLICATIONS: Yet to be determined.
EFFECTIVE DATE: This act shall take effect immediately and shall apply
to taxable years commencing on or after January 1, 2013, provided howev-
er that the commissioner of taxation and finance is authorized to
promulgate any and all rules and regulations and take any other measures
necessary for the timely implementation of this act on its effective
date on or before such date.
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