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History
- Referred to investigations and government operations
Full text
The text isn't available here yet. Check nysenate.gov.
Sponsor's memo
Title of bill
An act to amend the tax law, in relation to the creation of the New York jobs tax credit (Part A); to amend the tax law, in relation to the personal income tax rates and benefit recapture (Part B); to amend the tax law, in relation to entire net income base (Part C); and creating a commission on regulatory reform and economic competitiveness; and providing for the repeal of such provisions upon expiration thereof (Part D)
Purpose
To create a major new jobs initiative designed to improve New York's business climate, reduce taxes, and create thousands of new jobs for workers across the State.
Summary of provisions
Part A: Creates a New York Jobs Tax Credit. The Credit will equal the amount of withholding generated from each new employee that is hired by a New York business. The credit can be claimed for the first 3 years up to $5000 for every new job they create. The business can earn an additional $3,000 credit for the first full year for hiring someone who is collecting unemployment insurance benefits. The additional credit will be paid from the savings created in the unemployment insurance fund and by utilizing stimulus funds for the two years of the credit.
Read the full memo (659 words)
Part B: Eliminate the personal income tax surcharge one year early for small businesses that have 50 employees or less or not more than $2 million in net income.
Part C: Small Business & Manufacturing Tax Cuts: In the first year of the Senate plan, the corporate franchise tax would be cut in half for businesses with 50 employees or less or not more than $2 million in net income. In the following year, the business tax would be completely eliminated for these businesses.
This tax cut would particularly benefit main street businesses, existing small manufacturers, small start-ups and high technology companies. New York State has 18,500 technology companies with an average of 16 employees. There are a total of more than 427,000 small businesses in New York that employ more than 3.9 million people.
Part D: Eliminate Wasteful Regulations, Reduce Paperwork & Cut Red Tape: creates a Regulatory Reform and Competitiveness Commission to review all state regulations for their impact on the state's businesses. The Commission would include representatives from the large and small business community, as well as local government and labor, and, similar to the Berger Commission, make a recommendation to the State Legislature of regulatory revisions that would become law, unless the State Legislature passed superseding legislation.
In addition, all agencies would be required to identify the economic impact and cost to business of any and all proposed new regulations.
Also places a 5 year moratorium on increased rates for business taxes and fees.
Justification
This plan will make the state more competitive for business growth and job creation. This plan looks to the future and proposes a plan to encourage the creation of permanent, high-salary jobs that works for businesses across the state and will put New York in a much better position to compete for new businesses and jobs. Over 60,000 businesses were affected by the income tax surcharge. The income tax surcharge reduced the amount of business investment capital for these companies, constraining their ability to grow. The cost of doing business in New York must be reduced in order for our companies to continue to grow. This plan will lower those costs giving businesses the additional capital needed for growth.
The passage of separate spending cap legislation is the first step in making this plan effective.
Legislative history
This is a new bill.
Fiscal implications
There is a one-time impact of $400 million for the income tax roll back and a $100 million fiscal impact for SFY 2010-11 and $200 million annual impact thereafter. The jobs credit and additional credit for hiring off the unemployment rolls are fiscally neutral.
Effective date
Effective immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.