Enacts the small business jobs revitalization act; repealer

Section 2 This act shall be known as the "small business jobs revitalization act".

Section 3 Severability clause. If any part of this act is invalid it shall not impact the remainder.

Section 4 Establishes the act shall take effect immediately

Part A

Section 1 Amends section 210 of the tax law.

Part A (B) Amends the tax law for taxable years beginning on January 1, 2016 and before January 1, 2017 if the business income base is not more than $500,000 the amount shall be three and one-quarter percent of the income business base. If the business income base is more than $500,000 but not over $600,000 the amount shall be the sum of $16,520 and six and one-half percent of the excess of the business income base over $500,000 but not over $600,000 and thirty-two and one-half percent of the excess of the business income base over $550,000 but not over $600,000.

Part A (C) For taxable years beginning on or after January 1, 2017 and before January 1, 2018 if the business income base is not more than $500,000 the amount shall be two and nine-tenths percent of the income business base. If the business income base is more than $500,000 but not over $600,000 the amount shall be the sum of $14,500 and six and one-half percent of the excess of the business income base over $500,000 but not over $600,000 and thirty-six percent of the excess of the business income base over $550,000 but not over $600,000.

Part A (D) For taxable years beginning on or after January 1,2018 if the business income base is not more than $500,000 the amount shall be two and one-half percent of the income business base. If the business income base is more than $500,000 but not over $600,000 the amount shall be the sum of $12,500 and six and one-half percent of the excess of the business income base over $500,000 but not over $600,000 and forty percent of the excess of the business income base over $450,000 but not over $500,000. Section 2 Amends 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.

Part B Repeals sections 24, 28 and 31 of the tax law, subsections (gg), (jj) and (qq) of section 606 of the tax law, subdivisions 20, 23 and 32 of section 210-B of the tax law and subdivisions (b) and (c) of section 1201-a of the tax law, relating to the empire state film production credit, the empire state commercial production credit, and the empire state post production credit.

Part C Directs the empire state development corporation to cease all advertisement and promotional activities for the Start-Up NY Program.

Justification

New York's small businesses are stifled by a large tax burden and slow growth Upstate. This bill reduces the 9A rate for small business tax which will allow small businesses to reinvest and create more jobs. Ninety-seven percent of New York's businesses are small businesses with less than one hundred employees. These businesses employ thirty-six percent of the state workforce. Small businesses are New York's best hope for growing the economy and prosperous future. These cuts will be paid for through the repeal of the empire state film and production tax credits as well as the repeal of the Start-Up NY advertising budget. Recent studies have shown that both of these programs have been ineffective in creating jobs.

Legislative history

None.

Fiscal implications

To be determined.

Effective date

Effective Immediately, provided that the applicable effective date of Parts A through C of this act shall be as specifically set in the last section of such Parts.