Manufacturing Tax Cuts and Parity | 2020

February 24th, 2020

S.4671-A (Kaplan) / A.636-B (Stirpe)

MEMORANDUM IN SUPPORT

Unshackle Upstate, a non-partisan, pro-taxpayer, pro-economic growth, education and advocacy coalition made up of business and trade organizations from all parts of Upstate New York strongly supports this legislation.

In 2014, New York State took and important step towards revitalizing Upstate’s once ubiquitous manufacturing sector by eliminating the corporate franchise tax for manufacturers organized as C-corps.

Unfortunately, not all manufacturers were able to take part in this tax reduction as only 25% of manufacturers in New York State are organized as C-Corps. Smaller manufacturers that are becoming a more important part of the sector are often incorporated in different ways.

This legislation improves upon the reforms of 2014 by allowing all manufacturers, including those organized as pass-throughs to realize the benefit tax reductions.

According to the sponsors, citing a study conducted by The Beacon Hill Institute from November 2017, the elimination of the PIT for pass-through manufacturers would increase private sector jobs by 3,455 the first full-year and by 4,850 in 2022.

Unshackle Upstate has consistently advocated for policies that will make New York a better place to do business. If enacted, this legislation would provide a positive benefit to thousands of New York manufacturers and make the state more attractive.

For these reasons, Unshackle Upstate supports this legislation.

Contact:
Michael Kracker,
Executive Director
716.541.1755
Michael.Kracker@unshackleupstate.com