What's New

Zack Hutchins
Director of Communications

January 9, 2007

Senate Majority, citing Council data, unveils business assistance program

Arguing that New York must do more to help businesses create good-paying jobs, the Republican Senate Majority Tuesday proposed tax cuts designed to save businesses more than $1 billion a year when fully implemented. The Senate proposal also includes increases in state aid to businesses.

The plan includes a proposal to eliminate the corporate income and franchise tax for manufacturers, regardless of size.

"Too many of our young people are leaving our communities because they don't think they will provide them with the kind of careers they want or provide a good living for their families," Senate Majority Leader Joseph Bruno said, citing data from Benchmark New York, a new report from the Public Policy Institute.

The Senate Majority said its plan would address the above-average business tax burden, documented in the Council's Benchmark New York, by eliminating the income tax and the corporate franchise tax on the state's manufacturers, resulting in $550 million in savings.

And small businesses paying school taxes would receive a property tax rebate check, averaging $700, totaling $150 million statewide.

Business Council President Kenneth Adams hailed the proposal.

"Business owners consistently rank taxes among the major competitive problems facing New York,” said Adams. "Senator Bruno and the Senate Majority are right: We must cut business taxes this year to strengthen our economy and create a climate for new jobs.

"We look forward to working with the Senate, Governor Spitzer and the Assembly to accomplish these essential goals."

The Senate Majority also noted The Business Council's recent member survey found that 41 percent of respondents said energy costs were among their top four concerns. Benchmark noted energy costs are 58 percent above the national average.

“The Senate small business plan would address that concern by providing a $350 million refundable tax credit program that would help 386,000 eligible small businesses across New York State afford the rising cost of energy,” the Senate's release said. “Under the plan, a business with 20 or fewer employees can receive a credit of two cents per Kilowatt Hour (KwH) that would be applied directly to eligible businesses' tax liability, while businesses that do not owe taxes would receive a rebate check.”

Nearly 400,000 small businesses, employing 20 people or less, would received energy tax credits totaling up to $350 million statewide.

The plan would also:

More information on the Senate Majority's plan is available at senatorbruno.com/press_archive_story.asp?id=15559.