Tax relief for manufacturers aims to boost NYS economy
Manufacturing businesses in western New York can expect tax relief through this year’s state budget. The effort aims to improve the economic competitiveness of upstate New York.
State Senator Tim Kennedy says the western New York economy supports more than 50,000 manufacturing jobs. He says measures in the 2014-2015 budget aim to spur the creation of more good-paying jobs in the industry.
“This is good news for businesses. Businesses know that New York State is taking steps in the right direction to make sure that they have a seat at the table, that those businesses are sustained here, that they don’t have to look outside this region anymore,” said Kennedy.
The budget calls for manufacturing businesses that own or lease property to receive a 20 percent real property tax credit. It cuts the income tax rate for manufacturers to zero, and it accelerates the phase out of the 18-A utility surcharge to reduce energy costs for businesses and residents.
President of Industrial Support Incorporated, Dave Sullivan says the relief will make it easier for his company to compete nationally and internationally.
“Any costs we as companies can save we can put into hiring more people and grow our business. So, it’s very important. Power costs are much lower in other parts of the country. So, any way that can help us save is very much appreciated,” said Sullivan.
The manufacturing tax relief will be funded through surplus dollars in the state budget. This year’s budget totaled at $139 billion. Kennedy says the measures will boost the competitiveness of the state and help return Buffalo to its historic economic strength.
“It’s very, very positive news for businesses, for job creation, and future opportunities in the state of New York, especially for Buffalo and western New York that’s built a reputation of having these blue collar manufacturing jobs,” said Kennedy.