Albany, N.Y. – (5/29/12) – Today, Senator Greg Ball (R, C – Patterson) announced the NEW JOBS-NY Job Creation Plan. The New York State Senate’s comprehensive plan (S.7448) will help create thousands of new private sector jobs by delivering tax relief to small businesses and manufacturers, reducing energy costs, and enacting major fiscal reforms to make New York State more economically competitive.
Senate Republicans first approved a small business tax cut plan as part of its budget resolution in early March. However, the tax cuts were not included in the enacted 2012-13 state budget.
“Job creation has been my number one priority since being elected to the Senate,” said Senator Ball. “This job creation plan shows the New York State Senate’s commitment to sustainable job creation. I am extremely proud that this package not only gets out of the way of small businesses, but provides job opportunities for our military service men and women returning back home.”
The “New Jobs-NY Job Creation Plan” will include; job-creating tax cuts, new incentives for job creation in the private sector, taxpayer protection, fiscal responsibility regulatory reform, the elimination of job-killing regulations and measures to make state agencies more responsive.
Among the highlights of the NEW JOBS-NY plan are the following:
New Incentives For Job Creation:
“HIRE-NOW-NY” TAX INCENTIVE: Our Hire-Now-NY proposal includes direct
incentives to encourage businesses to begin expanding their workforce again. For each new job they create, a business would get a tax credit of up to $5,000.
MOVING FROM UNEMPLOYMENT TO THE WORKPLACE: The Hire-Now-NY tax incentive would increase to up to $8,000 if the employer hires someone who is currently unemployed.
“HIRE-A-VET” ENHANCED CREDIT: The legislation includes Senator Ball’s legislation that will provide any business that hires a veterans returning home from military service with an enhanced tax credit of up to $10,000 to any business that hires a veteran returning home from military service.
Taxpayer Protection, Fiscal Responsibility and Regulatory Reform:
STATE SPENDING CAP: The two percent cap would help to ensure fiscal responsibility, and provide a better environment for economic growth and job creation (S.6302).
CONSTITUTIONAL AMENDMENT TO HELP PREVENT TAX INCREASES: This constitutional amendment would require a two-thirds “super majority” vote, rather than asimple majority, for any tax increase – making it far more difficult to raise taxes.
Job-Creating Tax Cuts:
ELIMINATING TAXES ON MANUFACTURERS: Over a three year period, the legislation would provide manufacturers throughout New York State with $495 million in tax relief – phasing out the taxes they pay under the State’s Corporate Franchise Tax and Personal Income Tax. This unprecedented step would immediately and dramatically improve the competitiveness of NewYork’s manufacturers, create thousands of new jobs, and provide a major economic boost to communities across the state.
20 PERCENT CORPORATE TAX CUT FOR SMALL BUSINESSES: The plan would provide small businesses with a corporate tax rate cut from 6.5 percent to 5.2 percent – a 20 percent reduction. It would also virtually eliminate the fixed dollar minimum for small businesses. This $49 million tax cut, which would impact almost 200,000 small businesses, would make our state more competitive and help create thousands of new jobs.
SMALL BUSINESS JOBS CREDIT: The plan would also provide a 10 percent tax credit for about 800,000 small businesses that have at least one employee, have business income of less than $250,000, and that file under the personal income tax. This tax credit would help encourage new job creation by saving small businesses $80 million.
ELIMINATE SENATE DEMOCRATS 500 PERCENT ENERGY TAX HIKE: In 2009, Senate Democrats hurt New York’s economy by enacting a dramatic 500 percent hike in the 18a assessment that New Yorkers pay on utility bills. This disastrous tax hike took $1.7 billion out of the economy and chased businesses and jobs out of New York.
The new Energy Tax Cut would accelerate the phase-out of this huge tax hike by one year, from 2014 to 2013. By cutting taxes earlier than previously scheduled, we will deliver $522 million in relief and give a major boost to New York’s economy.
BREWER’S PRODUCTION CREDIT AND LABEL REGISTRATION CREDIT: In response to a recent NYS Supreme Court order which hurt a number of New York’s craft brewers, the legislation would allow a credit to small brewers for the first 200,000 barrels of beer brewed in New York, and a $150 credit for each beer label registered with the NYS Liquor authority (only for beer labels where less than 1,500 barrels are produced annually in New York.)
ENCOURAGING JOB-CREATING INVESTMENT IN START-UPS: The legislation includes new investment tax credit provisions to help ensure that promising business start-ups have access to the investment capital they need to grow and expand.
STRENGTHENING THE FILM PRODUCTION INDUSTRY: The legislation provides support for New York’s film production industry by increasing the post-production tax credit from 10 percent to 30 percent.
Eliminate job-killing regulations:
This legislation repeals the annual notification provisions of the “Wage Theft Prevention Act of 2010” – a duplicative and costly mandate that the previous Senate leadership
imposed on employers statewide. This job-killing measure is a perfect example of unnecessary red tape that does nothing to help employees, while also hurting businesses and our economy.
Making State Agencies More Responsive:
For years, many small business owners have expressed concern about unresponsive state agencies – especially when it comes to the permitting process. When someone applies
for a professional license or a permit, they should not be left hanging for months on end. The Honesty in Permit Processing Act requires agencies to publicly disclose their response times, and to tell applicants how long they can expect to wait for approval. If approval takes more than 134 percent of the average processing time, applicants would get a refund. This will improve New York’s economic climate, empower taxpayers, and help break through bureaucratic logjams.
The “NEW JOBS-NY Job Creation Plan” was passed through the New York State Senate on May 30, 2012.
For more information or to speak with Senator Ball, please contact Krista Gobins: (845) 200-9716.