Assemblyman William F. Boyland Jr. 2013-14 State Budget Includes Significant Tax Relief for Middle-Class Families, Small Businesses

March 28, 2013

Assemblyman William F. Boyland Jr. 55th District announced he helped pass 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 strikes a balance, helping make New York more affordable for hardworking families in our district and more hospitable for small businesses,” Assemblyman Boyland said. “Lowering taxes can provide real relief to families and can help businesses grow. This spending plan does just that.”

Keeping NY affordable for millions of hardworking families

To continue providing a fairer tax system in New York, the 2013-14 state budget extends the current tax rate first implemented in 2012, 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, which is why this multi-year extension is so critical for hardworking families, Assemblyman Boyland noted.

The budget extends this middle-class tax cut for three additional years and pays for it by requiring those making over $2 million per year – less than 1 percent of all New York residents – pay their fair share.

“By implementing a more progressive tax structure, we can continue to keep New York affordable for millions of families statewide,” Assemblyman Boyland said. “Asking the wealthiest among us to pay their fair share goes a long way to ensuring low- and middle-income New Yorkers a more secure future for years to come. Quite simply, it’s the right thing to do.”

Tax credits signal NY means business

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:

• phase out the 18-A utility assessment surcharge; by fiscal year 2017-18, the savings for utility customers will reach $500 million; and
• 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.

“By providing small businesses throughout the state with much-needed tax credits, we’ve sent a clear message: New York means business. This state budget puts money where it’s needed, giving small businesses already operating in New York more breathing room, and giving new businesses a reason to call New York home,” Assemblyman Boyland said. “Plus, this year’s budget gives us the opportunity to give additional help to veterans, a group that often faces some of the hardest struggles getting back into the workforce.”

Manufacturing tax cut good for businesses, workers

The 2013-14 budget reduces the current 3.25 percent tax rate on manufacturing companies to 2.4 percent by 2018.

“This tax cut will lower costs for manufacturers, making it easier for them to compete and grow. Companies growing in New York mean more decent-paying jobs for blue-collar workers,” Assemblyman Boyland said.

Renewing the promise to inner-city youth

The 2013-14 budget renews 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 a city of more than 55,000 or a town of 480,000.

“The benefits of this tax credit are twofold, giving at-risk youth a chance to gain valuable work experience and helping the businesses that hire them with much-needed tax relief,” Assemblymember said. “For many, this could be a first job where they learn the value of working.”

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

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