Relates to the empire zone wage tax credit for certain manufacturers.
Ayes (54): Addabbo, Avella, Ball, Bonacic, Boyle, Breslin, Carlucci, DeFrancisco, Diaz, Dilan, Farley, Felder, Flanagan, Gallivan, Gipson, Griffo, Grisanti, Hannon, Hassell-Thomps, Hoylman, Kennedy, Klein, Lanza, Larkin, Latimer, LaValle, Libous, Little, Marcellino, Marchione, Martins, Maziarz, Montgomery, Nozzolio, O'Brien, O'Mara, Parker, Peralta, Ranzenhofer, Ritchie, Robach, Sampson, Savino, Serrano, Seward, Skelos, Smith, Squadron, Stavisky, Stewart-Cousins, Tkaczyk, Valesky, Young, Zeldin
Nays (5): Gianaris, Krueger, Perkins, Rivera, Sanders
Excused (2): Espaillat, Golden
TITLE OF BILL: An act to amend the tax law, in relation to certain manufacturers
Adjust the calculation of various components of the wage tax credits under subdivision (k) of section 606 of the tax law for certain manufacturers certified in the empire zone.
SUMMARY OF PROVISIONS:
Section 1. Makes provisions for the calculation of the empire zone wage tax credits under section 606(k) of the tax law for certain manufacturers.
Section 2. Effective date.
Empire zone enterprises are vital businesses within our communities that encourage job growth and foster economic development. And, this is especially true in areas of New York which have seen a steady loss of manufacturing jobs in recent years. As an incentive to participate in the Empire Zones Program, certified entities qualify for tax credits and refunds. For example, under New York State tax law, an empire zone enterprise that grows employment after its certification date is entitled to certain wage tax credits based on the amount of increase.
Businesses seeking to participate in the Empire Zones Program must be certified by the local Zone Administrative Board before certification by the State Department of Economic Development. The date of designation of lands and certification of the company by the local Zone Administrative Board is critical to the calculation of the wage tax credits under the Program because the business must grow its employment after established dates to receive these credits. This bill would allow certain manufacturers who have complied with the spirit of the law, and have relied on the wage tax credit as a significant component of its budget, to receive five years of wage tax credits as originally intended under the Empire Zones Program.
PRIOR LEGISLATIVE HISTORY:
This act shall take effect immediately and shall apply to taxable years beginning on and after January 1, 2010.
STATE OF NEW YORK ________________________________________________________________________ 7763 IN SENATE June 5, 2014 ___________Introduced by Sen. VALESKY -- read twice and ordered printed, and when printed to be committed to the Committee on Investigations and Govern- ment Operations AN ACT to amend the tax law, in relation to certain manufacturers THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Subsection (k) of section 606 of the tax law is amended by adding a new paragraph 3-a to read as follows: (3-A) IN THE CASE OF A MANUFACTURER: (I) THAT HAS ACQUIRED THE ASSETS OF A PLASTICS MANUFACTURER PREVIOUSLY OPERATING IN NEW YORK STATE, (II) IS CERTIFIED AS AN EMPIRE ZONE ENTERPRISE WITH AN EFFECTIVE DATE ON OR AFTER JANUARY FIRST, TWO THOUSAND NINE, AND (III) EMPLOYS AN AVERAGE OF MORE THAN THIRTY FULL-TIME EMPLOYEES EACH YEAR IN WHICH IT QUALIFIES FOR A CREDIT UNDER THIS SUBSECTION, THEN, SUCH MANUFACTURER SHALL BE DEEMED TO HAVE AN EMPLOYMENT NUMBER AS OF SUCH CERTIFIED ENTITY'S EMPIRE ZONE DESIGNATION DATE OF ZERO; SHALL BE ELIGIBLE TO CLAIM WAGE TAX CREDITS PROVIDED FOR BY THIS SUBSECTION FOR TAX YEAR TWO THOUSAND TEN AND THE FOUR TAX YEARS THEN FOLLOWING; AND SHALL BE DEEMED TO BE A NEW BUSINESS FOR PURPOSES OF THIS SUBSECTION FOR TAX YEAR TWO THOUSAND TEN AND THE FOUR TAX YEARS THEN FOLLOWING. S 2. This act shall take effect immediately and shall apply to all taxable years beginning on or after January 1, 2010.EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD15505-01-4