Qualified manufacturers will receive a new 20 percent real property tax credit and an elimination of their entire net income tax. For a manufacturing firm to qualify, they must have taxable property in New York valued at $1 million or more, or have all of its real property assets located in New York.
Expedited Phase-Out of 18A Energy Tax:
Unshackle Upstate has aggressively opposed the 18a energy tax, which is levied on every ratepayer in the state, since its implementation in 2009. While we will still work towards its outright repeal, we are pleased that this budget expedites its sunset and reduces its rates on all energy consumers over the next four years.
Reduction of the State Corporate Tax:
The State’s corporate tax rate on net income will be reduced from 7.1 percent to 6.5 percent beginning in 2016
Reform of the Estate Tax:
New York’s Estate Tax, long considered the most punitive in the nation, is reformed by raising the minimum asset threshold from $1 million to the federal standard of $5.25 million.
This is critical not only for our small businesses and farms, but for you too. This is not about giving a tax cut to the ultra-wealthy as some would have you believe. This tax hits all of us that have a home, retirement and life insurance portfolio valued at more than the $1M threshold. Now we can sleep at night knowing our families will not be taxed on the estate we leave.
Many of the issues highlighted above have been a prominent focus of advocacy efforts for several years and were included in Unshackle Upstate’s 2014 policy agenda. We are very pleased to see Gov. Cuomo and the Legislature take action on these issues important to small businesses, large employers and individual taxpayers.