State Senator Hugh T. Farley (R, C, I – Schenectady) reported the 2014-15 State Budget, approved by the State Senate, includes significant tax relief to businesses to encourage them to grow and create new job opportunities for New Yorkers.
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.