Tax Committee Update
April 27, 2010
Staff Contact: Ken Pokalsky
Governor Paterson "Gap Closing Plan" - Rescind Business Tax Credits
In a press conference today, Governor Paterson announced a proposal for another $620 million “gap closing plan” for the State Fiscal Year 2010-11. As you know, the Legislature has yet to take final action on the new state budget, which was due April 1.
Among his proposals is one to “Disallow 50 Percent of Business-Related Tax Credit Claims.” The fact sheet issued by the Governor's office describes this by saying that “usable or refundable business-related tax credits for which taxpayers could apply would be reduced by 50 percent in tax years 2010-2012.” It projects that savings (i.e., increased business tax liability) for Fiscal 2010-11 would be $100 million; and $650 million for Fiscal 2011-12.
The Governor's fact sheet is available here: www.ny.gov/governor/press/GapClosingPlanFactSheet.html
We have asked both the Division of Budget and Department of Taxation and Finance for further details on this proposal, and we will forward additional details as they become available.