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June 18, 2010


Honorable William T. Stachowski  (sent to all members of the WNY state delegation and state leadership)
New York State Senate
Legislative Office Building, Room 918
Albany, NY 12247


Dear Senator Stachowski:

On behalf of the 2,500 employer members of the Buffalo Niagara Partnership, I urge your particular opposition to the current budget negotiations which include Governor Paterson’s tax credit deferral proposal which would suspend 50% of all business tax credits that would otherwise be claimed during 2010, 2011, and 2012. This proposal is simply another hidden business tax increase that violates the terms of agreement between the state and businesses who have earned these tax credits for investments that they have already made in New York.

Additionally, budget negotiations must not significantly reduce funding to the new economic development program slated to replace the expiring Empire Zones program, which is virtually irrelevant given that it would only provide $50 million per year in new tax credits for eligible businesses statewide – a fraction of the value of the current $515 million Empire Zone program. This significant cut is in stark contrast to the proposed $85 million increase in the Film Production Tax Credit program, whose benefits are limited to one NYC-centric industry. Moreover, the proposed Excelsior Jobs program fails to offset our state’s high taxes, promote capital investment, or boost job growth and retention – the Empire Zone program’s foremost goals.

A thoughtful replacement program to the Empire Zones program will signal to both in-state and out-of-state business that New York can deliver effective economic development incentives to eligible businesses who want to stay and grow in New York, most especially in Upstate.

Our state must work to make itself more attractive to new business investment, not less. Both of these budget proposals will erode key economic development incentives thus, adversely affecting state’s economic recovery and its efforts to promote private sector jobs.

New Yorkers need your leadership.  I strongly encourage you to table the tax credit deferral proposal given the repercussions it could have on the thousands of businesses across the state that are relying on these promised tax credits, and to push for an extension of the current Empire Zones program in the absence of an acceptable alternative.  If these proposals are approved, the outcome is inevitable – measurably less private sector investment resulting in a significant loss of current and prospective jobs in a state and at a time when we call ill afford it.

Sincerely,

Andrew J. Rudnick