Enacts the "New Start New York act" to reduce certain taxes on businesses and establishing the 3-D program

Summary of provisions

Section 1. Sets forth the short title of "New Start New York act."

Section 2. This act enacts into law major components of legislation enabling existing businesses to compete, succeed and create jobs. Each component in contained in parts A-D as follows:

Part A. This part accelerates the repeal of the Article 18-a utility bill surcharge from 2017 to 2015. Section 6 of part NN of chapter 59 of the laws of 2009, amending the public service law relating to financing the operations of the department of public service, the public service commission, department support and energy management services provided by other state agencies, as amended by section 2 of part BB of chapter 59 of the laws of 2013, is amended to set forth an effective date and change the date of repeal for subdivision 6 of section 18-a of the public service law as added by section four of this act.

Part B. Increases the five percent small business and farm income deduction to ten percent. Section 1. Paragraph 39 of subsection (c) of section 612 of the tax law, as added by section 1 of part Y of chapter 59 of the laws of 2013, is amended to allow small businesses and farms tax deductions of 5 percent of net items of income, gain, loss and deduction attributable to such business or farm for taxable years beginning after 2014, and ten percent for taxable years beginning after 2015.

Part C. Establishes a STAR property tax exemption for small businesses. Section 1. Paragraph (a) of subdivision 2 of section 425 of the real property tax law, as amended by section 1 of part E of chapter 83 of the laws of 2002, is amended to include small businesses which satisfy the criteria set forth for a basic STAR exemption.

Part C. Section 2. Establishes the type of property which may qualify for an exemption to be a primary place of business of a small business. (a-1) To qualify for an exemption pursuant to this section,

a small business must be a business entity, other than a sole proprietorship, which employs not less than two employees, nor more than fifty employees at its primary place of business. (a-2) For the purpose of this section, "person" or "owner" shall include a small business.

Part D. Section 1. Amends the economic development law by adding a new Article 22 to be known as the "3-D Program" which allows Startup NY benefits to businesses that Dream, Design, and Develop a product in this state. This section outlines the eligibility criteria for manufacturers in order to participate in the 3-D program. This section also outlines the tax benefits associated with the 3-D Program available to participating small businesses.

Section 3. Sets forth a severability clause. Section 4. Sets forth the effective date.

Justification

This legislation is designed to catalyze the innovation, design and manufacture of new products by creating a more business-friendly climate in New York with additional tax relief and reform. The New Start NY plan is designed to encourage through the concept for entrepreneurs of DREAM IT HERE. DESIGN IT HERE. DEVELOP IT HERE. The goal being for innovators to be able to bring exciting new ideas from the drawing board to the marketplace under the umbrella of components created in this new tax relief package and business friendly initiatives. Therefore, simultaneously creating the opportunity for job growth and sustainability of our small business community which continues to be the backbone of our economy.

Legislative history

New legislation

Fiscal implications

To be determined

Effective date

This act shall take effect immediately; provided that the applicable effective date of Parts A through D of this act shall be as specifically set forth in the last section of such parts.