The 2014-15 State Budget, approved today by the State Senate, includes significant tax relief to businesses to encourage them to grow and create new job opportunities for New Yorkers.
Senator John DeFrancisco (R-C-I, Syracuse), Chairman of the Senate Finance Committee, said: “This is the fourth consecutive state budget that has reduced the tax burden on large and small businesses in an effort to encourage growth and job creation. This budget includes more tax relief so small businesses and manufacturers can succeed, grow and create new economic opportunities.”
Senator Jack Martins (R-C-I, Mineola), Chairman of the Senate Committee on Commerce, Economic Development and Small Business, said: “Lowering costs for manufacturing businesses is the best way to help them grow and create jobs; that's exactly what this budget does. Cutting taxes, reducing energy costs by accelerating the phase out of the job-killing energy tax surcharge, and making it more affordable to do business in New York State are all positive steps which will continue to revitalize our economy and put people back to work.”
Senator George Maziarz (R-C, Newfane), Chairman of the Senate Energy and Telecommunications Committee, said: “The 18-a energy tax surcharge has placed a huge burden on businesses across the state, especially manufacturers, and on families as well. This budget will provide significant relief for businesses and residential ratepayers across the state and accelerate the elimination of this job-killing tax.”
Highlights of business tax reductions include the following:
Lower Taxes on Manufacturers – The budget includes major new tax cuts for manufacturers throughout the state, helping them reduce costs and compete more effectively. It eliminates the following: corporate tax calculations for manufacturers the business income tax, which is lowered from 5.9 percent to zero for all manufacturers in 2014 and thereafter; the capital base, and the alternative minimum tax.
Energy Tax Relief – The budget further reduces the 18-a energy tax surcharge by an additional $100 million a year for commercial and industrial users over the next three years, providing our energy intensive manufacturing sector with major savings. The energy tax surcharge reduction will also reduce residential utility bills by $100 million a year over the next three years.
Manufacturer’s Property Tax Credit – The budget includes a 20 percent property tax credit saving manufacturers $100 million a year to help them reduce their cost of operations.
In addition, the budget includes an additional $501 million in new business tax reforms and simplifications including reducing the business tax rate from 7.1 percent to 6.5 percent, the lowest rate since 1968.
The budget also increases funding for key job training programs, helping to ensure a highly skilled and well educated workforce.