Assemblymember Brindisi: Final state budget helps middle class and small businesses

March 28, 2013

Assemblymember Brindisi (D-Utica) announced the passage of the 2013-14 state budget that includes significant tax relief for middle-class families and small businesses (A.3009-D).

“This year’s state budget helps Mohawk Valley families,” Assemblymember Brindisi said. “It creates new opportunities for our veterans and our youth, while providing real tax relief for our businesses.”

Locking in lowest tax rate in 60 years

The 2013-14 state budget keeps the current tax rate in place, locking in the lowest tax rate for middle-class families in 60 years. Approximately 4.4 million taxpayers, more than 99 percent of those filing statewide, benefited from $690 million in tax relief stemming from the tax restructuring in 2011, which is why this extension is so critical for hardworking families, Assemblymember Brindisi noted. The budget extends this middle-class tax cut for three additional years.

“Locking in income taxes at the lowest rate in 60 years will help working families for another three years. More people keeping more of their paychecks will help our economy rebound,” Assemblymember Brindisi said.

Tax credits for Mohawk Valley businesses

In a continued effort to make New York a friendlier place to do business and create jobs, the budget provides tax relief measures to the business community that will:

• Provide a veteran’s tax credit for businesses that hire veterans. For taxable years 2015 and 2016, this credit would be worth 10 percent of the wages paid to a qualified veteran during the first full year of employment or 15 percent of the wages if the veteran is disabled.
• Phase out the 18-A utility assessment surcharge; by fiscal year 2017-18, the savings for utility customers will reach $500 million.

“The new veterans’ tax credit will fulfill our obligation to take care of the veterans who honorably served our country while helping local businesses at the same time. And the military base retention efforts will ensure that our local military facilities continue to play an integral part in the Mohawk Valley’s economy,” Assemblymember Brindisi said.

Manufacturers’ tax rates reduced

The 2013-14 budget reduces the current 3.25 percent tax rate on manufacturing companies to 2.4 percent by 2018, which is a 26% reduction in taxes.

“Tax relief for manufacturers will create new capital to invest in innovation and job growth,” Assemblymember Brindisi said. “Decreasing the economic burden on manufacturers will mean more jobs for our hardworking families and more prosperity in the Mohawk Valley.”

NY Youth Works tax credit extended

The 2013-14 budget will renew the inner-city youth employment program, providing a $24 million tax credit over four years for employers who hire unemployed youth 16 to 24 years of age who reside in Utica.

“This tax credit is a win –win. Businesses will receive a tax credit for hiring new employees and young adults will have more job opportunities,” Assemblymember Brindisi said. “When a young adult has a job they learn about responsibility, and the opportunity to build a successful career.”

The program and credit would be available to employers in the clean energy, health care, advanced manufacturing and conservation industries. Eligible employers would receive up to $4,000 if they retain the workers for an entire year. The program would be extended through 2017.

New small business support initiatives

The budget establishes the New York State Innovation Venture Capital Fund and the New York State Business Incubator and Innovation Hot Spot Support Act, which are programs designed to assist the start-up and growth of newly established business and technology companies in the state.

The $50 million Innovation Venture Capital Fund will provide early-stage seed money for investments in new businesses and promote the transition from research and development to commercialization. The Business Incubator and Innovation Hot Spot Support Act will designate high-tech business incubators and 10 “hot spots” to encourage private-sector growth with higher education institutions. Companies operating within an Innovation Hot Spot also will be eligible for tax exemptions.

“The Mohawk Valley already has the groundwork laid for higher education and private-sector partnerships,” Assemblymember Brindisi said. “I have and will continue to fight to make the Mohawk Valley one of the ten innovation hot spots, so that we can expand on our already successful technology initiatives.”

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