Legislative Memo

Ken Pokalsky
Vice President of Government Affairs
T 518.465.7517 x205


Governor's Draft Budget Bill



50 Percent Deferral of Most Business Tax Credits



April 29, 2010


The Business Council strongly opposes the Governor's proposal to defer 50 percent of business tax credits “that otherwise would be used or refunded” for tax years 2010, 2011 and 2012.  This would affect tax credits earned for new investments in these years, as well as credit earned for prior investments.

This proposal would erode key economic development incentives, such as the investment tax credit which is widely used to support new capital investments in New York State's manufacturing sector.  Importantly, this proposal impacts tax incentives already earned by businesses for investments they have already made in New York State– like Empire Zone real property tax credits and ITCs that have been carried forward.

It also reduces economic development incentives available to support new investments and new jobs in New York State, and will further erode the business community's confidence in state-offered incentives. 

At a time when the state is focusing on retaining and creating new jobs for New Yorkers, this proposal would make the state's economy and businesss climate less competitive.

Other specific concerns regarding this proposal include:

For these reasons, The Business Council strongly opposes this proposal, and urges its rejection by the Senate and Assembly.