Bill Text: NY A02271 | 2023-2024 | General Assembly | Introduced

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Bill Title: Creates a tax credit for manufacturing companies that have one established place of business in the state and relocate a minimum of fifty employees from outside the state to the state; provides that manufacturing companies shall be allowed a credit in the amount of 2.5 percent of the average salaries of newly created manufacturing jobs multiplied by number of new jobs brought to the state.

Spectrum: Strong Partisan Bill (Republican 11-1)

Status: (Introduced) 2024-01-03 - referred to economic development [A02271 Detail]

Download: New_York-2023-A02271-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                          2271

                               2023-2024 Regular Sessions

                   IN ASSEMBLY

                                    January 25, 2023
                                       ___________

        Introduced  by  M.  of  A.  NORRIS,  DeSTEFANO, J. M. GIGLIO, MORINELLO,
          BRABENEC, HAWLEY, LEMONDES -- read once and referred to the  Committee
          on Economic Development

        AN  ACT  to  amend  the  economic  development  law  and the tax law, in
          relation to creating a tax credit  for  manufacturing  companies  that
          have  one  established  place  of business in the state and relocate a
          minimum of fifty employees from outside the state into the state

          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:

     1    Section  1.  The  economic  development law is amended by adding a new
     2  section 107 to read as follows:
     3    § 107. Encourage manufacturing jobs. 1. The commissioner shall promote
     4  the location and development of new businesses in the state by encourag-
     5  ing manufacturing companies that already have at least  one  established
     6  place  of  business in the state and bring at least fifty employees from
     7  an out of state location to the state  for  the  purposes  of  expanding
     8  their manufacturing company.
     9    2.  The  commissioner shall determine what companies qualify for a tax
    10  credit pursuant to section one hundred eighty-seven-r of  the  tax  law,
    11  but  only manufacturing companies that bring long term jobs to the state
    12  shall be eligible for such credit, provided that:
    13    (a) the commissioner shall have the  power  to  define  and  determine
    14  which jobs are "long term"; and
    15    (b) notwithstanding paragraph (a) of this subdivision, a manufacturing
    16  company  that  loses  its  contract, closes a facility or suffers from a
    17  catastrophic event as determined by the commissioner shall not be deemed
    18  ineligible for such credit.
    19    § 2. The tax law is amended by adding a new section 187-r to  read  as
    20  follows:
    21    §  187-r.  Manufacturing jobs incentive credit. 1. General. A taxpayer
    22  shall be allowed a one time credit, to be  credited  against  the  taxes

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD02313-01-3
        A. 2271                             2

     1  imposed  under sections one hundred eighty-three and one hundred eighty-
     2  four of this  article.  Such  credit,  to  be  computed  as  hereinafter
     3  provided,  shall be allowed for qualified manufacturing companies pursu-
     4  ant  to  section  one  hundred  seven  of  the economic development law.
     5  Provided, however, that the amount of such credit allowable against  the
     6  tax  imposed by section one hundred eighty-four of this article shall be
     7  the excess of the credit allowed by this section over the amount of such
     8  credit allowable against the tax imposed by section one hundred  eighty-
     9  three of this article.
    10    2. Amount of credit. The amount of the credit under this section shall
    11  be  2.5 percent of the average salaries of the newly created manufactur-
    12  ing jobs multiplied by the number of new jobs brought into the state  by
    13  such companies.
    14    3.  Carryover.  In  no  event  shall  the credit under this section be
    15  allowed in an amount which will reduce the tax payable to less than  the
    16  applicable minimum tax fixed by section one hundred eighty-three of this
    17  article.  If, however, the amount of credit allowable under this section
    18  for any taxable year reduces the tax to such amount, any amount of cred-
    19  it not deductible in such taxable  year  may  be  carried  over  to  the
    20  following  year or years and may be deducted from the taxpayer's tax for
    21  such year or years.
    22    § 3. This act shall take effect immediately and shall apply to taxable
    23  years beginning on or after the first of  January  next  succeeding  the
    24  date  on  which  it shall have become a law.  Effective immediately, the
    25  addition, amendment and/or repeal of any rule  or  regulation  necessary
    26  for  the implementation of this act on its effective date are authorized
    27  to be made and completed on or before such effective date.