Tax Relief and Reform
*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 her in New York.
*One such incentive eliminates the income tax on manufacturers, saving businesses $193 million 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.
Keeping New York 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.
Reducing the property tax burden
This year’s state budget ensures that hardworking families continue paying the lowest tax rate in
over 60 years and provides for a $350 child tax rebate, while also giving them substantial property tax
*Provides significant property tax relief for homeowners across the state by offering a two-year
property tax credit in the form of a direct check, provided that a local government and school district
stay within the 2 percent property tax cap.
*To benefit for a second year, schools and localities would have to propose a detailed cost-cutting
*This measure will not only help families save money, but will also incentivize efficiency, saving
taxpayers over $1.5 billion over the next 3 years.
Keeping New York affordable
*In last year’s budget, the Assembly fought to phase out the 18-a utility surcharge imposed on energy bills
*This year’s budget accelerates the phase-out, lowering the surcharge rates by $200 million annually for both residential and commercial customers and $600 million over the next three years.
Estate Tax Reform
*The enacted budget also provides much-needed reform to the state’s estate tax by raising the income threshold from $1 million to $5.2 million over the next four years.
*This increase will save taxpayers $355 million when fully phased in. ·