Cuomo’s Plan to Sunset 18-a Will Provide Relief for Manufacturers

Governor Cuomo’s Executive Budget proposal contains an item critical to bringing down the cost of electricity for local manufacturers. The Governor’s plan calls for the scheduled sunset of the 18-a Utility Tax on March 31, 2017. A mandated tax on the end user’s utility bill, 18-a hits manufacturers and other high demand users the hardest and puts them at a competitive disadvantage.

The elimination of 18-a has long been a priority of the Buffalo Niagara Partnership. In our 2017 Advocacy Agenda, we call not only for its scheduled elimination, but put our state leaders on the notice that we will guard against the creation of a replace tax that negatively impacts manufacturers.

Late last year, the Partnership joined with allies from all across New York State to encourage the Governor to include the 18-a sunset in his budget. Click here to read the letter.

The 18-a Utility Tax – officially known as the Temporary State Energy and Utility Service Conservation Assessment – was adopted in 2009 to help fill a state budget gap and is directed toward the general fund. Since 2009, the tax was reduced and extended once in 2013.

To read more about where the Partnership stands on the Governor’s Executive Budget, click here.

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About Grant Loomis

Vice President, Government Affairs