What's happening
This bill creates a tax credit for manufacturing companies with an existing New York location that relocate at least 50 out-of-state employees to New York.
Why it matters
Targets actual job creation, not just business relocation. The tax credit is only available to manufacturing companies that bring at least 50 "long term" jobs from out of state, meaning the policy is designed to increase stable employment rather than incentivize superficial or short-lived moves.
Commissioner flexibility allows for real-world exceptions. The bill empowers the commissioner to define what counts as a "long term" job and to make exceptions for companies affected by contract loss, facility closure, or catastrophic events—helping ensure the credit rewards genuine investment rather than penalizing companies for circumstances beyond their control.
Credit formula ties incentive directly to payroll impact. The tax credit amount is calculated as 2.5% of the average salaries of the new jobs multiplied by the number of jobs relocated, potentially making the incentive more attractive to companies that create higher-paying positions and maximizing the economic impact per dollar of tax benefit.
Fiscal safeguards limit potential revenue loss. The credit cannot reduce a company's tax below the minimum required by law, and any unused credit can be carried forward, which helps balance economic development goals with the protection of the state’s tax base.
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Tax Credit for Relocating Jobs
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History
- Referred to economic development
- Referred to economic development
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
5605
2017-2018 Regular Sessions
IN ASSEMBLY
February 10, 2017
Introduced by M. of A. NORRIS -- read once and referred to the Committee on Economic Development
AN ACT to amend the economic development law and the tax law, in relation to creating a tax credit for manufacturing companies that have one established place of business in the state and relocate a minimum of fifty employees from outside the state into the state
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. The economic development law is amended by adding a new section 107 to read as follows:
§ 107. Encourage manufacturing jobs. 1. The commissioner shall promote the location and development of new businesses in the state by encouraging manufacturing companies that already have at least one established place of business in the state and bring at least fifty employees from an out of state location to the state for the purposes of expanding their manufacturing company.
2. The commissioner shall determine what companies qualify for a tax credit pursuant to section one hundred eighty-seven-t of the tax law, but only manufacturing companies that bring long term jobs to the state shall be eligible for such credit, provided that:
(a) the commissioner shall have the power to define and determine which jobs are "long term"; and
(b) notwithstanding paragraph (a) of this subdivision, a manufacturing company that loses its contract, closes a facility or suffers from a catastrophic event as determined by the commissioner shall not be deemed ineligible for such credit.
§ 2. The tax law is amended by adding a new section 187-t to read as follows:
§ 187-t. Manufacturing jobs incentive credit. 1. General. A taxpayer shall be allowed a one time credit, to be credited against the taxes imposed under sections one hundred eighty-three, one hundred eighty-
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD09668-01-7
A. 5605 2
four, and one hundred eighty-five of this article. Such credit, to be computed as hereinafter provided, shall be allowed for qualified manufacturing companies pursuant to section one hundred seven of the economic development law. Provided, however, that the amount of such credit allowable against the tax imposed by section one hundred eighty-four of this article shall be the excess of the credit allowed by this section over the amount of such credit allowable against the tax imposed by section one hundred eighty-three of this article.
2. Amount of credit. The amount of the credit under this section shall be 2.5 percent of the average salaries of the newly created manufacturing jobs multiplied by the number of new jobs brought into the state by such companies.
3. Carryover. In no event shall the credit under this section be allowed in an amount which will reduce the tax payable to less than the applicable minimum tax fixed by section one hundred eighty-three or one hundred eighty-five of this article. If, however, the amount of credit allowable under this section for any taxable year reduces the tax to such amount, any amount of credit not deductible in such taxable year may be carried over to the following year or years and may be deducted from the taxpayer's tax for such year or years.
§ 3. This act shall take effect immediately and shall apply to taxable years beginning on or after the first of January next succeeding the date on which it shall have become a law; provided, however, that effective immediately, the addition, amendment and/or repeal of any rule or regulation necessary for the implementation of this act on its effective date are authorized and directed to be made and completed on or before such effective 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.