What's happening
This bill phases out and then eliminates the franchise tax on business corporations that are manufacturers in New York.
Why it matters
Significantly reduces and then eliminates franchise tax liability for manufacturers. , which could lower operating costs and incentivize manufacturing businesses to expand or relocate to New York.
Defines "manufacturer" and "principally engaged" in clear, quantifiable terms. (more than 50% of gross receipts from manufacturing activities), which establishes a strict threshold for eligibility and aims to prevent tax avoidance by non-manufacturing entities.
Applies the exemption to combined groups of corporations. only if the group as a whole meets the manufacturing threshold, potentially affecting large, multi-entity corporate structures and their tax planning.
May impact state revenue and broader business tax policy. , raising questions about how New York will offset potential lost tax income, and could prompt debates about the fairness and economic effectiveness of industry-specific tax breaks.
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Who cares
Headline styles
End Tax on Manufacturers
Plain English, a few words. Used as the page title.
Sponsors
History
- Referred to ways and means
- Referred to ways and means
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
2180
2017-2018 Regular Sessions
IN ASSEMBLY
January 17, 2017
Introduced by M. of A. SCHIMMINGER, MAGNARELLI, MAGEE, BRINDISI, LUPAR- DO, ZEBROWSKI -- Multi-Sponsored by -- M. of A. BARCLAY, GIGLIO, GOODELL, HOOPER, KOLB, LAVINE, OAKS, PALMESANO, PEOPLES-STOKES -- read once and referred to the Committee on Ways and Means
AN ACT to amend the tax law, in relation to phasing out the franchise tax on business corporations that are manufacturers
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Section 208 of the tax law is amended by adding two new subdivisions 13 and 14 to read as follows:
13. The term "manufacturer" shall mean a taxpayer which during the taxable year is principally engaged in the production of goods by manufacturing, processing, assembling, refining, mining, extracting, farming, agriculture, horticulture, floriculture, viticulture or commercial fishing. Moreover, for purposes of computing the capital base in a combined report, the group shall be considered a "manufacturer" for purposes of this article only if the combined group during the taxable year is principally engaged in the activities set forth in this subdivision, or any combination thereof.
14. The term "principally engaged" shall include a taxpayer or a combined group if, during the taxable year, more than fifty percent of the gross receipts of the taxpayer or combined group, respectively, are derived from receipts from the sale of goods produced by manufacturing. In computing a combined group's gross receipts, intercorporate receipts shall be eliminated.
§ 2. Section 209 of the tax law is amended by adding a new subdivision 13 to read as follows:
13. (a) For any taxable year beginning on or after January first, two thousand eighteen, a taxpayer who is a manufacturer shall be exempt from fifty percent of all taxes imposed by this article.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD05722-01-7
A. 2180 2
(b) For any taxable year beginning on or after January first, two thousand nineteen, a taxpayer who is a manufacturer shall be exempt from all taxes imposed by this article.
§ 3. This act shall take effect immediately and shall apply to taxable years commencing on or after January 1, 2017; provided, however, 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.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.