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- Referred to investigations and government operations
- Referred to investigations and government operations
Full text
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Sponsor's memo
BILL NUMBER:S3562
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 bill
This bill would phase out the corporate franchise tax over a two-year period on businesses which are manufacturers.
Summary of specific provisions
Section 1- Amends section 208 of the Tax Law by adding two new subdivisions 20 and 21 to define the terms "manufacturer" and "principally engaged."
Section 2 -Amends section 209 of the Tax Law by adding a new subdivision 11 to provide that (a) for any taxable year beginning on or after Janu- ary 1, 2014, a manufacturer shall be exempt from 50% of the corporate franchise tax and (b) for any taxable year beginning on or after January 1, 2015, a manufacturer shall be exempt from all of the corporate fran- chise tax.
Section 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 manufactur- ers employing more than 541,000 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 incen- tive 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 imper- ative 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 manufac- turers that have operated, invented, and employed workers in the State
Prior legislative history
2011-2012 S.4172
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, 2013, provided howev- er 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.