What's happening
This bill increases the tax credit for real property taxes paid by qualified manufacturers from 20% to 100%.
Why it matters
Significantly increases financial incentives for manufacturers. By raising the tax credit from 20% to 100% of real property taxes paid, this bill could dramatically lower the cost of owning and operating manufacturing facilities in New York.
Aims to boost manufacturing sector competitiveness. The enhanced credit could help attract new manufacturers to the state and retain existing ones by improving the bottom line for these businesses, potentially counteracting higher-than-average property taxes.
Could impact local economies and job creation. Lower operating costs for manufacturers may encourage expansion, investment in new equipment, or hiring of additional employees, which could benefit local communities through job growth and increased economic activity.
Potential trade-offs for state revenue. While beneficial to manufacturers, the measure could lead to substantial reductions in state tax revenues, possibly affecting funding for other state programs or requiring adjustments to the broader tax code.
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Who cares
Qualified New York manufacturers paying business franchise tax
The bill would increase their credit from 20% to 100% of eligible property taxes paid on New York property they own and principally use for manufacturing.
Qualified New York manufacturers claiming personal income tax credits
They would receive the same increase from 20% to 100%, excluding property taxes deducted in computing New York adjusted gross income.
Manufacturers claiming other tax credits
They would remain barred from using the same property taxes to calculate both this credit and another claimed credit.
Headline styles
Boost Tax Credits for Manufacturers
Plain English, a few words. Used as the page title.
Sponsors
14 Co-sponsors
2 Multi-sponsors
History
- Held for consideration in ways and means
- Referred to ways and means
- Referred to ways and means
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
4150
2019-2020 Regular Sessions
IN ASSEMBLY
February 1, 2019
Introduced by M. of A. PALMESANO, CROUCH, RAIA, GIGLIO, HAWLEY, ASHBY -- Multi-Sponsored by -- M. of A. BARCLAY, TAGUE -- read once and referred to the Committee on Ways and Means
AN ACT to amend the tax law, in relation to increasing the amount of the business franchise and personal income tax credits for real property taxes paid by qualified manufacturers
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Paragraph (a) of subdivision 43 of section 210-B of the tax law, as added by section 17 of part A of chapter 59 of the laws of 2014, is amended to read as follows:
(a) A qualified New York manufacturer, as defined in subparagraph (vi) of paragraph (a) of subdivision one of section two hundred ten of this article, will be allowed a credit equal to [twenty] one hundred percent of the real property tax it paid during the taxable year for real property owned by such manufacturer in New York which was principally used during the taxable year for manufacturing to the extent not deducted in determining entire net income. This credit will not be allowed if the real property taxes that are the basis for this credit are included in the calculation of another credit claimed by the taxpayer.
§ 2. Paragraph 1 of subsection (xx) of section 606 of the tax law, as amended by section 8 of part I of chapter 59 of the laws of 2015, is amended to read as follows:
(1) A qualified New York manufacturer will be allowed a credit equal to [twenty] one hundred percent of the real property tax it paid during the taxable year for real property owned by such manufacturer in New York which was principally used during the taxable year for manufacturing to the extent not deducted in computing New York adjusted gross income. This credit will not be allowed if the real property taxes that are the basis for this credit are included in the calculation of another credit claimed by the taxpayer.
§ 3. This act shall take effect immediately and shall apply to taxable years commencing on or after January 1, 2019.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD07555-01-9
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.