For Release — June 28, 2010
Business Council says deferring earned tax credits is a huge tax increase
ALBANY— “Taking away tax credits that companies have already earned is an immediate tax increase that will make it harder for New York businesses to invest, grow and create jobs to pull us out of this recession,” said Kenneth Adams, president and CEO of The Business Council of New York State.
“The proposal would erode key economic development incentives, such as the investment tax credit (ITC), which is widely used to support new capital investments in New York State's manufacturing sector. Incredibly, 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,” added Adams.
“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. It will brand New York as the “state that can't keep its word” when it offers incentives to encourage private sector job creation and investment,” concluded Adams. “No matter how it is packaged, this is a business tax increase -- businesses will pay a projected $1.4 billion more in taxes over the next three years than they would under current law.”