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New York Senate Passes 2012 NEW JOBS-NY Job Creation Plan

Thursday, May 31st, 2012

On Wednesday, the New York State Senate passed the 2012 NEW JOBS-NY Job Creation Plan, which must now go before the state Assembly for consideration.  Among many other provisions, this plan would provide the following new hiring-based incentives.

SMALL BUSINESS JOBS CREDIT: The plan would provide a 10 percent tax credit for about 800,000 small businesses that have at least one employee, have business income of less than $250,000, and that file under the personal income tax. This tax credit would help encourage new job creation by saving small businesses $80 million.

“HIRE-NOW-NY” TAX INCENTIVE: Our Hire-Now-NY proposal includes direct incentives to encourage businesses to begin expanding their workforce again. For each new job they create, a business would get a tax credit of up to $5,000.

The HIRE NOW benefit would increase to $8,000 if the qualifying new employee was unemployed.

 “HIRE-A-VET” ENHANCED CREDIT: The Senate job creation plan would provide an enhanced tax credit of up to $10,000 to any business that hires a veteran returning home from military service.

Sorry, the Senate’s press release was very scant on detail. If this plan passes the NY Assembly, I will investigate further and provide additional details on the WOTC Planet.

See the full press release on the NY Senate’s website.

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New Tax Credits Pass New York State Senate

Wednesday, February 9th, 2011

New York State Senator Joseph P. Addabbo issued a press release last week detailing his support for state senate bill S. 1891. The bill, which has passed the state Senate, provides a number of tax benefits to small businesses, including some hiring-based tax credits. 

From the press release:

Known as the Omnibus Tax Reduction Bill, the legislation provides for several tax reduction measures for individual and corporate taxpayers. First, with the New York Job Tax Credit, the benefit is equal to one hundred percent of the State withholding tax up to $5,000 for each job created above a business’s 2010 employment level.

Employers are eligible for an additional $3,000 per job if the new employee is receiving unemployment insurance at their time of hire.  This credit may be claimed for three consecutive tax years. Both personal income and corporate taxpayers are eligible to receive this credit.

To become law, the measures must still be considered by the state Assembly.

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Saying Goodbye to New York State’s Empire Zone Tax Incentive Program

Thursday, June 17th, 2010

A budget deal was struck Wednesday that will replace the State of New York’s Empire Zone program with a smaller less costly program.  No, I was not there.  But there have been a few good news sources on this topic today.

Budget deal cuts Empire Zones to save money

By Tom Precious, News Albany Bureau of the Buffalo News World & Nation

The Empire Zone program, the chief economic development program for upstate New York for the past decade, will be eliminated and replaced with a scaled-down version offering lower benefits and a shorter life span, under a deal reached Wednesday by budget negotiators for Gov. David A. Paterson and the State Legislature

The Empire Zone program, criticized over the years for bloated job-creation promises but still considered a vital tool in some distressed areas, will end June 30 to help reduce the state’s red ink. Companies already in the program will get benefits until their contracts expire.

AP Sources: NY Empire Zone program to be scrapped

By Michael Gormley, in Bloomburg Business Week.

Empire Zones would be replaced by the Excelsior Jobs program that would provide $250 million a year in tax breaks and credits. A senior Paterson administration official, who also spoke on the condition of anonymity because the deal [had not yet] been announced, said the new program will be aimed at “high growth, high wage industries.”

Key provisions would include:

Using a greater variety of tax incentives, including a job tax credit that subsidizes wages, an investment tax credit equal to 2 percent of what companies spend to expand or improve their operations, a research-and-development credit to encourage innovation; and a real property tax credit for “regionally significant projects.”

Targeting the aid for innovation and research companies, manufacturing, agriculture, and distribution firms. The new program would end subsidies to law firms, shopping mall development, utilities already located in New York and taverns that received aid under Empire Zones.

The program provides contracts for five years with annual reviews over job targets, as opposed to 10-year contacts under Empire Zones.

The incentives would total $50 million this year and rise to $250 million in the fifth year. By comparison, the Empire Zone program was expected to spend more than $600 million this year, a year of a fiscal crisis in which Paterson and the Legislature are trying to address a $9.2 billion deficit.

Apparently, companies already receiving benefits under the former program will continue to receive them until their contracts expire.



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