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History
- Amended on third reading 4102a
- Ordered to third reading cal.1076
- Committee discharged and committed to rules
- Referred to investigations and government operations
- Referred to investigations and government operations
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Phases out the franchise tax on business corporations which are manufacturers over a two-year period
In Assembly Committee · Ways And Means · Sponsor Robin Schimminger
Full text
The text isn't available here yet. Check nysenate.gov.
Sponsor's memo
BILL NUMBER:S4102A
Title of bill
An act to amend the tax law, in relation to phasing out the franchise tax on business corporations that are manufacturers
Purpose of the bill
This bill would phase out the corporate franchise tax over a two-year period on businesses which are manufacturers.
Summary of specific provisions
§ 1- Amends § 208 of the Tax Law by adding two new subdivisions 20 and 21 to define the terms "manufacturer" and "principally engaged."
§ 2- Amends § 209 of the Tax Law by adding a new subdivision 11 to provide that (a) for any taxable year beginning on or after January 1, 2011, a manufacturer shall be exempt from 50% of the corporate franchise tax, and (b) for any taxable year beginning on or after January 1, 2012, a manufacturer shall be exempt from all of the corporate franchise tax.
§ 3- Effective date.
Justification
According to the most recent Economic Census information from the U.S. Census Bureau, in 2002 there were over 21,000 manufacturers employing more than 641,000 employees in New York State. The manufacturing industry is an important economic engine that fuels growth in the communities where manufacturers are located and throughout the State. Manufacturing companies make goods which, when sold, return wealth to the communities in which they are located. Recent tax and incentive programs and opportunities provided by the State have been focused on attracting new businesses. However, there are tremendous growth opportunities within the existing manufacturing base. It is hence imperative to implement incentives and tax reductions to continue to attract, grow, and retain manufacturing business. This measure would solidify New York State's commitment to its manufacturers that have operated, invested, and employed workers in the State.
Prior legislative history
2007-2008: A.2361 2005-2006: A.10055
Fiscal implications
Yet to be determined.
Effective date
This act shall take effect immediately and shall apply to taxable years commencing on or after January 1, 2010; provided, however, that
the commissioner of taxation and finance is authorized to promulgate any and all rules and regulations and take any other measures necessary for the timely implementation of this act on its effective date on or before such date.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.