Albany– State Senator Michael F. Nozzolio today announced that the State Senate has unveiled a small business and manufacturing assistance plan that targets the biggest concerns that hold back small businesses from growing and creating new jobs. The plan would provide $490 million in assistance in the first year and almost $1.3 billion in tax relief and assistance to small businesses when fully implemented after three years.
“The Senate has initiated and fought for tax relief that has saved New Yorkers billions of dollars, but we still have to do more to help businesses, especially small businesses, create good-paying jobs,” Senator Nozzolio said. “It’s the small business entrepreneurs who are building our economy and we must ensure that people with good ideas and a good work ethic are afforded every opportunity to succeed in New York State.”
“This small business assistance package represents pro-growth, pro-job policies that will lower taxes, provide new economic incentives, streamline red tape and bureaucracy and make it much easier for young people and families to stay here because they will see a future here,” continued Nozzolio.
The plan would eliminate the corporate income and franchise tax for manufacturers; provide direct property tax relief checks to small businesses; provide tax relief for businesses that pay personal income tax; provide tax credits for the costs of energy; and cut State red tape and bureaucracy.
There are almost half a million small businesses (fewer than 100 employees) in New York State, with 70 percent of them employing ten people or less. The majority of new jobs created in New York are created by small businesses.
The small business assistance plan includes:
> Eliminating the income tax and corporate franchise tax on manufacturers, regardless of size, providing $550 million in tax relief;
> A $350 million refundable tax credit to help 386,000 small businesses that employ 20 people or less, with rising energy costs;
> Reducing Corporate Franchise Tax rates from 7.5 percent to 6.85 percent, saving businesses $150 million;
> Creating a Small Business STAR program to provide direct rebate checks, averaging $700, to small businesses that pay school taxes and employ less than 20 people, providing $150 million in property tax relief;
> Expanding incentives to encourage emerging technology companies that do research and development in New York, to also manufacture their products in New York;
> $20 million in relief through reforms of the corporate franchise tax; and
> Relief from red tape and bureaucracy by simplifying and reducing paperwork, eliminating unnecessary or overly burdensome fees and permits, and creating a one-stop shopping information center to help someone start or expand a small business in New York.
Senator Nozzolio also announced that the Senate will convene public hearings to address the restructuring of economic development programs to embrace the diversity in New York's economy with a more regional and sector approach to job growth and retention. In addition, the Senate Majority will convene public hearings to address the need to simplify the tax code.