STATE SENATE PASSES “NEW JOBS-NY” JOB CREATION PLAN
- $129 million in tax relief for small businesses; $495 million for manufacturers
- Creates new incentives for business to hire
- Accelerates repeal of 500% energy tax hike
Albany, N.Y. – The New York State Senate has passed the 2012 NEW JOBS-NY Job Creation Plan. The plan delivers tax relief to small businesses and manufacturers and reduces energy costs to make New York State more economically competitive.
“Every new job created is one step closer to a stronger economy. For a family, one job has an even greater impact by improving its quality of life,” said Senator Ranzenhofer. “While the last two State Budgets have made great strides in easing the burden of taxes and regulations for businesses, there is still work to be done. This comprehensive plan continues to ease the burden on small businesses and manufacturers by delivering tax relief and reducing energy costs, helping to create thousands of new private sector jobs.”
The 2012 NEW JOBS NY job creation bill (S7448) passed Wednesday includes the following job-creating 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.
• 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 would impact almost 200,000 small businesses.
• 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.
• ELIMINATE 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. The new Energy Tax Cut would accelerate the phase-out of this huge tax hike by one year, from 2014 to 2013, delivering $522 million in tax relief.
• “HIRE-NOW-NY” TAX INCENTIVE: New job-creating incentives to grant businesses a tax credit of up to $5,000 for each new job created; 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. The HIRE-NOW-NY incentive is modeled after legislation introduced by Senator Ranzenhofer.
"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 Ranzenhofer.
The plan is supported by business organizations across the state, including the Business Council of New York, Unshackle Upstate and the National Federation of Independent Businesses.
Other provisions in the plan include a Brewer’s Production Credit and Label Registration Credit, and actions to strengthen the film production industry and spur investment in start-up companies. The plan also has numerous provisions to enact fiscal reform by enacting a spending cap and constitutional amendment to help prevent tax increases.