Assemblyman Perry Helps Pass State Budget That Creates Jobs and Cuts Taxes for Businesses

Assemblyman Perry (D-Kings County – 58th AD) announced he helped pass a 2014-15 state budget that focuses on creating jobs and promoting a more business-friendly climate in New York State (A.8557-D, A.8554-E, A.8555-D).

“This year’s budget invests in programs to jumpstart job creation,” said Assemblyman Perry. “It also cuts taxes for businesses, helping them grow and create jobs.”

Helping manufacturers

In an effort to attract more businesses to the state and create more local jobs, the budget provides tax incentives to manufacturing businesses looking to set up shop here in New York. One such incentive eliminates the income tax on manufacturers, saving businesses $193 million dollars starting in 2014-15, creating jobs and revitalizing the economy.

The budget further relieves manufacturers by offering a tax credit equal to 20 percent of their property tax cost. Businesses that were worried about locating or expanding in New York will no longer face the same burdensome property taxes that discouraged those before them. This will save manufacturing businesses another $100 million each year starting in 2015-16.

“We are making it easier for manufacturers to do business here, so they can hire more workers,” said Assemblyman Perry. “Whether it’s cutting their property taxes or lowering their income tax rate to 0 percent, we are helping to encourage technological innovation and create the good-paying, high-quality jobs we need to put New Yorkers back to work.”

Reducing utility costs

New York companies pay some of the highest energy costs in the nation. The budget’s elimination of the 18-a temporary utility surcharge will lower their cost of doing business, making it possible for businesses to hire more employees.

Keeping NY jobs here

The budget also includes a corporate tax cut that will amount to approximately $500 million when fully phased in. This initiative merges New York’s bank tax and corporate tax and lowers the corporate tax rate from 7.1 percent to 6.5 percent. The budget also phases out the practice of calculating the corporate tax based on assets rather than income.

“By merging the bank and corporate tax, we can ensure that there will be consistency in taxation for all businesses,” said Assemblyman Perry. “These changes will encourage corporations, banks and other financial institutions to keep jobs here in New York.”

Additionally, the budget provides $70 million in Excelsior Tax Credits for a fourth round of Regional Economic Development Councils (REDCs) and $150 million in flexible, new economic development capital funding. REDCs will continue to focus on the unique strengths and priorities of each region, providing crucial funding and boosting the economy, added Assemblyman Perry.

Supporting small businesses and MWBEs

The state budget includes a $300,000 increase to the Community Development Financial Institution (CDFI) Assistance Program. CDFIs provide loans to businesses that don’t quality for traditional bank loans. They also provide credit guidance through counseling and business development assistance.

The budget also includes $1 million to support the Minority- and Women-owned Business Enterprise (MWBE) Development Lending Program, a $365,000 increase from the executive budget proposal. A new MWBE Investment Fund is also included within the lending program. The fund would provide critical financial support to foster the development of new and emerging ideas and promote the long-term financial performance and success of early-stage MWBEs.

“MWBEs and other small businesses are the drivers of our state’s economy. We need to be sure we are doing everything we can to help them compete,” Assemblyman Perry said. “Removing barriers for small businesses allows them to participate in the rebuilding of our economy.”

Supporting innovation and a skilled workforce

The state budget restores $3.5 million for Centers of Excellence, which link universities with various technology industries. Specializing in nanoelectronics, bioinformatics, photonics, environmental systems, wireless applications, and information technology, the Centers were established to encourage rapid commercialization of scientific breakthroughs.

“It’s imperative that we support innovation in every way we can, especially when it comes to getting new technological advancements on the market,” said Assemblyman Perry. “We are operating in a truly global economy, it’s time we start supporting work that can compete.”

Expanding the NY Works Program

Furthermore, the budget expands the NY Youth Works Program, which encourages businesses to hire unemployed, disadvantaged youth, ages 16 to 24, by connecting it to community colleges. Tying the occupational training component of the NY Youth Works Program to the Job Linkage Program will help encourage more employers to hire inner-city youth, said Assemblyman Perry.

Improving transportation and job opportunities

To promote job growth while rebuilding our crumbling infrastructure, the budget dedicates over $3.4 billion for capital improvement of all transportation infrastructure.

The budget includes $438.1 million for the Consolidated Highway Improvement Program (CHIPs) and $39.2 million for the Marchiselli program. It also dedicates an additional $40 million in funding to help local governments repair local roads and bridges impacted by the harsh winter.

“After the winter we’ve had, many of our local roadways have deteriorated,” said Assemblyman Perry. “This money will help cover the costs of much-needed repairs across the state, without overloading localities’ budgets.”

The 2014-15 budget allocates $4.8 billion for statewide transit. Downstate systems will receive over $4.6 billion, an increase of $91.2 million, and upstate transit systems will receive $178.7 million, an increase of $5.1 million. Supplementary legislation is in place to dedicate additional general fund money indexed to the growth in upstate sales tax. Upstate airport and railroad improvements are also on their way with $10 million allocated for each.