Creates 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 to the state; provides that manufacturing companies shall be allowed a credit in the amount of 2.5 percent of the average salaries of newly created manufacturing jobs multiplied by number of new jobs brought to the state.
STATE OF NEW YORK
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4595
2011-2012 Regular Sessions
IN ASSEMBLY
February 4, 2011
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Introduced by M. of A. CORWIN, GIGLIO, KOLB, MONTESANO, MURRAY, RAIA,
TENNEY -- Multi-Sponsored by -- M. of A. BARCLAY, BURLING, CALHOUN,
CASTELLI, CROUCH, DUPREY, JOHNS, McDONOUGH, McKEVITT, MOLINARO,
RABBITT, REILICH, N. RIVERA, SALADINO, SMARDZ, STEVENSON -- read once
and referred to the Committee on Economic Development
AN ACT to amend the economic development law and tax law, in relation to
creating a tax credit for manufacturing companies that have one estab-
lished place of business in the state and relocate a minimum of fifty
employees from outside the state to the state
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. The economic development law is amended by adding a new
2 section 107 to read as follows:
3 § 107. Encourage manufacturing jobs. 1. The commissioner shall promote
4 the location and development of new businesses in the state by encourag-
5 ing manufacturing companies that already have at least one established
6 place of business in the state and bring at least fifty employees from
7 an out of state location to the state for the purposes of expanding
8 their manufacturing company.
9 2. The commissioner shall determine what companies qualify for a tax
10 credit pursuant to section one hundred eighty-seven-q of the tax law,
11 but only manufacturing companies that bring long term jobs to the state
12 shall be eligible for such credit, provided that:
13 (a) the commissioner shall have the power to define and determine
14 which jobs are "long term"; and
15 (b) notwithstanding paragraph (a) of this subdivision, a manufacturing
16 company that loses its contract, closes a facility or suffers from a
17 catastrophic event as determined by the commissioner shall not be deemed
18 ineligible for such credit.
19 § 2. The tax law is amended by adding a new section 187-q to read as
20 follows:
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD08137-01-1
A. 4595 2
1 § 187-q. Manufacturing jobs incentive credit. 1. General. A taxpayer
2 shall be allowed a one time credit, to be credited against the taxes
3 imposed under sections one hundred eighty-three, one hundred eighty-
4 four, and one hundred eighty-five of this article. Such credit, to be
5 computed as hereinafter provided, shall be allowed for qualified manu-
6 facturing companies pursuant to section one hundred seven of the econom-
7 ic development law. Provided, however, that the amount of such credit
8 allowable against the tax imposed by section one hundred eighty-four of
9 this article shall be the excess of the credit allowed by this section
10 over the amount of such credit allowable against the tax imposed by
11 section one hundred eighty-three of this article.
12 2. Amount of credit. The amount of the credit under this section shall
13 be 2.5 percent of the average salaries of the newly created manufactur-
14 ing jobs multiplied by the number of new jobs brought into the state by
15 such companies.
16 3. Carryover. In no event shall the credit under this section be
17 allowed in an amount which will reduce the tax payable to less than the
18 applicable minimum tax fixed by section one hundred eighty-three or one
19 hundred eighty-five of this article. If, however, the amount of credit
20 allowable under this section for any taxable year reduces the tax to
21 such amount, any amount of credit not deductible in such taxable year
22 may be carried over to the following year or years and may be deducted
23 from the taxpayer's tax for such year or years.
24 § 3. This act shall take effect immediately and shall apply to taxable
25 years beginning on or after the first of January next succeeding the
26 date on which it shall have become a law; provided, however, that effec-
27 tive immediately, the addition, amendment and/or repeal of any rule or
28 regulation necessary for the implementation of this act on its effective
29 date are authorized and directed to be made and completed on or before
30 such effective date.
