February 15, 2007
Senate passes major business tax relief package
The state Senate has passed business tax reform legislation championed by Senate Majority Leader Joseph Bruno, which will reduce state-imposed business costs by $1.3 billion a year when fully implemented.
The Council had urged the Senate to pass the bill in a legislative memo filed in late January.
“This package would provide New York's businesses with much-needed relief, and we're extremely glad that the Senate has passed the legislation,” said Business Council President and CEO Kenneth Adams. “The Senate has shown its commitment to reducing business costs and encouraging growth and investment in the state, which is the most effective strategy for job retention and growth.”
The legislation seeks to alleviate the above-average tax burden documented in the Public Policy Institute's recent report, Benchmark New York, by eliminating the income tax and the corporate franchise tax on the sate's manufacturers. This move would result in $550 million in savings for those New York employers.
The legislation would also:
- Reduce corporate franchise tax rates from 7.5
to 6.85 percent, saving businesses $150 million,.
- Expand incentives for technology companies
that do research and development in New York to manufacture
in the state.
- Eliminate multiple tax calculations for small
businesses that must calculate both personal and corporate
franchise tax. The Senate Majority estimates this would
save small businesses $20 million.
- Expand the state's online permit and
licensing program to cover all state agencies, departments
and authorities that require permits, registrations and
fees. The plan would also allow businesses to file any
ongoing fees, registration filings or assessments as
part of the businesses tax filing.
- Provide a sales tax exemption for businesses
located in academic incubator facilities.
- Eliminate the petroleum business tax on non-residential
heating fuel, saving small businesses $7 million per
- Eliminate the alternative minimum tax for farms and make the investment tax credit refundable.
The bill has been sent to the Assembly and has been referred to Assembly Ways and Means committee. The Council will urge the Assembly to adopt the provisions contained in the bill.