Enacts the "2012 New Jobs-NY job creation act"; repealer

6 Co-sponsors

• David Carlucci
• Patrick M. Gallivan
• Jeffrey D. Klein
• Diane J. Savino
• David Storobin
• David J. Valesky

BILL NUMBER:S7448

Title of bill

An act to amend the tax law, in relation to establishing a small business tax credit and a hire-now tax credit (Part A); to amend the tax law, in relation to the franchise tax on business corporations (Part B); to amend the public service law, in relation to a temporary annual assessment; to amend part NN of chapter 59 of the laws of 2009 amending the public service law relating to financing operations of the department of public service, in relation to the effectiveness thereof; and to amend the public service law, in relation to reducing the amount a utility can be assessed (Part C); to amend the tax law, in relation to establishing the beer production and beer label tax credits (Part D); to amend the tax law, in relation to the allocation of credit for the empire state film production credit; and to repeal section 7 of part P of chapter 60 of the laws of 2004, amending the tax law relating to the empire state film production credit, relating thereto (Part E); and to amend the general municipal law and the tax law, in relation to establishing an angel tax credit for investments made in small businesses (Part F)

Purpose

To create a major job creation package designed to create thousands of new jobs for workers across the state.

Summary of provisions

Part A: Cuts the corporate tax rate for small businesses by 20%. Small Business Job Credit provides a 10% tax credit for hundreds of thousands of small businesses that have at least one employee, have business income of less than $250,000, and that file under personal income tax. Hire-Now-NY for each new job created, a business would get up to a $5,000 tax credit. That credit would grow to $8,000 if the job goes to someone who is currently on unemployment. Hire-a-Vet to provide a tax incentive of up to $10,000 to any business that provides a job opportunity to a returning veteran.

Part B: Eliminates taxes on New York manufacturers under the Corporate Franchise Tax and Personal Income Tax Over a three-year period.

Part C: Accelerates the phase-out of 18A assessment tax hike by one year, from 2014 to 2013 and restore the permanent base tax back to one third of one percent.

Part D: Allows a credit for the first 200,000 barrels of beer brewed in NY, 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.

Part E: Changes the applicable credit percentage from 10 percent to 30 percent for the film post production tax credit. Also moves unconsolidated law into consolidated law.

Part F: Creates an "Angel Investor" program with a pool of $7 million and also creates a 35 percent angel investor credit.

Justification

This comprehensive bill 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.

Legislative history

This is a new bill.

Fiscal implications

This bill will save New York businesses $394 million this year.

Effective date

Effective immediately.