Legislation sponsored by state Sen. Jim Seward, R-Milford, would eliminate certain taxes for manufacturers in New York, saving them more than $100 million in the 2013-14 fiscal year and nearly $500 million once the measure is fully implemented.
Seward's bill would phase out, over a three-year period, taxes paid by manufacturers under the state's corporate franchise tax and personal income tax, according to a summary of the bill on the Senate's website.
The tax relief for manufacturers will save companies $114 million in the 2013-14 fiscal year and $495 over a three-year period.
Seward, who first introduced the bill in 2012, said in an interview Friday that the bill will help New York retain and create manufacturing jobs.
"We used to be a leader in terms of manufacturing jobs. We've seen a rapid decrease in manufacturing jobs over the last couple of decades or more," he said. "The McQuay announcement just adds to that deterioration. That just adds fuel to the fire that we've got to pay special attention to manufacturing, particularly in upstate New York and help to create the environment so that manufacturing companies not only stay here but we can grow them here."
Here is the summary of the bill:
ELIMINATING TAXES ON MANUFACTURERS: Over a three year period, the legislation would provide manufacturers throughout New York State with $495 million in tax relief — phasing out the taxes they pay under the state's Corporate Franchise Tax and Personal Income Tax. The first phase will begin for tax years beginning on January 1, 2014. This will save manufacturers $114 million in SFY 2013-14 and $495 million when fully phased in.
Seward reintroduced the bill on Feb. 14 and the legislation was referred to the Senate Investigations and Government Operations committee. As of Tuesday, there are no co-sponsors.