Senator John Bonacic and members of the Senate Majority Conference announced that the Senate will pass legislation next week to implement the 2012 NEW JOBS-NY Job Creation Plan, continuing their strong focus on job creation and economic growth. 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.
“Job creation is clearly the key element we need to mend our state’s economy,” said Senator Bonacic. “Our plan will have a positive fiscal impact on small business owners, enabling them to expand and hire more employees. Reducing the cost burden of doing business and creating jobs is, and will continue to be, a top priority.”
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.
Among the highlights of the Senate Republican’s NEW JOBS-NY plan are the following:
· 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.
· Major Energy Tax Cut: The legislation accelerates the phase-out of the 500 percent energy tax hike Senate Democrats previously approved.
· 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.
· Fiscal Reforms to Improve New York’s Business Climate: The plan includes a two percent 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.
“This plan will start the process of strengthening and revitalizing our economy,” said Senator Bonacic.