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Sponsors
3 Co-sponsors
History
- Referred to investigations and government operations
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Relates to providing insurance corporations with a tax credit for investments made in rural business growth funds; establishes the New York agriculture and rural jobs fund
In Assembly Committee · Ways And Means · Sponsor Carrie Woerner
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 providing insurance corporations with a tax credit for investments made in rural business growth funds; and to amend the state finance law, in relation to establishing the New York agriculture and rural jobs fund
Purpose
The purpose of this legislation is to create the New York Agricultural and Rural Jobs Act to attract investment in small businesses in Rural New York State in order to grow and retain jobs, accelerate economic development and revitalize New York State's rural communities and agricultural businesses.
Summary of provisions
This legislation provides agriculture businesses and businesses located in rural New York access to affordable private growth capital in order to grow their businesses, create jobs and revitalize rural communities over a 5 year period.
The New York Agriculture and Rural Jobs Act utilizes a 65% tax credit to attract private capital contributions to a rural business investment fund ("RBIF") that invests capital into job-creating agriculture and rural businesses that need flexible financing.
This legislation includes oversight over the fund managers; as only RBIF fund managers who are qualified and certified by the U.S. Department of Agriculture (USDA) or the U.S. Small Business Administration (SBA) are able apply to manage the RBIF.
The legislation requires investment only in New York's small businesses as the businesses eligible for investment must have principal business operations in New York. Eligible businesses must also have fewer than 250 employees or less than $15 million in net income.
The program includes reporting requirements. Beginning in the second year, fund managers submit annual reports to the state, detailing all investments and economic impacts including rural jobs created or retained and average annual salaries of those jobs.
The tax credits are subject to strict recapture provisions if 100% of the eligible investments are not invested within 3 years. Further, the RBIF and its mangers face significant penalties if the 100% of the fund is not maintained for 5 years.
Justification
For years, Upstate New York was in a state of decay and decline. While areas of Upstate New York are experiencing some revitalization, much more needs to be done. The state must continue to find avenues to help assist rural communities and agribusinesses. Many agriculture businesses and small businesses located in rural New York still lack the needed capital to expand, grow and create jobs in rural areas to support rural communities.
The New York Agriculture and Rural Jobs Act is designed to attract investment in small businesses in rural New York in order to grow and retain jobs, accelerate economic development, and revitalize New York's rural, small businesses and communities. This state-level investment incentive focuses on giving New York's rural small
businesses and agriculture-focused businesses access to the financial support they need to grow and succeed.
Legislative history
New bill.
Effective date
This act shall take effect on January 1, 2017.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.