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NYS: Still hostile towards employers
May 11, 2010

Here’s Governor Paterson’s latest plan to close the state budget gap:  Give businesses only half of the tax credits they expect to receive in 2010, 2011, 2012. In other words, renege on the contracts the state entered into with private sector employers.

If your company participates in one of the more than 30 economic development programs listed below, you will be impacted by this latest proposed assault on the employer community. How? You signed a contract with the state to receive a tax credit as part of an incentive program, and budgeted accordingly. You upheld your end of the deal: hired the people you committed to hire, installed the green technology you said you would, or rehabbed the historic property as you pledged. Now, without warning, your tax credit will be half of what was promised. And it will be half of what you have budgeted in 2011 and 2012, too.

This sends a loud and clear message to the state’s already struggling private sector and any companies that are considering doing business in New York – our state remains hostile toward employers.

What Governor Paterson is proposing is nothing more than a hidden business tax increase — individual businesses will pay more in taxes than they would under current law – and violate the terms of agreements designed to assist in job creation and capital investment. All this, during a lingering recession when New York employers are struggling to keep the lights on, and their workers employed.                                                                                                                                                                     

To fight this proposal, we need you to do two things:                                                                                   

1). Send a message today to Albany in opposition to Paterson ’s tax credit deferral plan.

2). Reply to this email explaining how the plan to defer 50% of the credits would impact your bottom line. We’re collecting this information statewide, to share with elected officials as we walk the halls of the state capitol to oppose this plan.

Last year, the taxpayers and job creators of this state were saddled with a budget that included more than $8 billion in new and higher taxes. The governor and legislature must commit to budgeting practices that do not increase state spending, do not add new taxes and fees, do not include an increase in assessments or mandates and do not add to more state debt. Earlier this year, Unshackle Upstate proposed a $12 billion dollar savings plan that could serve as a solution to the state's fiscal problems.

We’re tracking the state legislature’s action on this and many other budget proposals closely. Remember:  Election day 2010 is Judgment Day.

Sincerely,

Andrew J. Rudnick

Programs impacted by Governor Paterson’s proposal:

Alternative Fuels Credit
Credit for Employment of Persons with Disabilities
Special Additional Mortgage Recording Tax Credit
Investment Tax Credit
Rehabilitation of Historic Properties Credit
Companies who Provide Transportation to Individuals with Disabilities
Clean Heating Fuel Credit
Biofuel Production Credit
Empire State Commercial Production
Conservation Easement tax credit
Purchase of an Automated External Defibrillator
Fuel Cell Electric Generating Equipment Expenditures
EZ Wage tax credit
EZ Capital Tax credit
EZ ITC
EZ EIC
Employment Incentive credit
QEZE Tax reduction Credit
QEZE Credit on Real Property Tax
Brownfield Redevelopment Tax credit
Remediated Brownfield Real Property Taxes for Qualified Sites
Environmental Remediation Insurance Credit
Security Training tax credit
QETC Facilities Operations and Training Credit
QETC Employment Credit
QETC Capital Tax credit
Low Income Housing Credit
Green Building Credit
Credit for servicing certain mortgages
Historic Homeownership Rehabilitation
Solar Energy System Equipment credit
CAPCO Credit
Power for Jobs Credit