55° Good Evening
55° Good Evening

State considers tax credits for job creation

Members of the New York State Senate speak

Members of the New York State Senate speak in Albany. (June 24, 2009) Photo Credit: AP

State Senate Republicans Wednesday continued to make their case for a proposal that would create jobs and provide relief to small businesses, highlighting Long Island companies squeezed by both new taxes and the effects of the recession.

The plan, which is expected to be formally proposed soon, includes a recurring tax credit of up to $5,000 for each new job created, the elimination of the corporate franchise tax for businesses with 50 employees or less or a net income of less than $2 million, a state spending cap and a moratorium on new taxes and fees on small businesses and manufacturers.

"The bottom line is you need to make businesses more affordable for those in existing businesses in New York State, and that's what this plan attempts to do," said Sen. Charles J. Fuschillo Jr. (R-Merrick), who is proposing the plan with Sens. Carl Marcellino (R-Syosset), Kemp Hannon (R-Garden City) and Dean Skelos of Rockville Centre, the Senate's Republican leader.

Fuschillo later added, "Unless you provide incentives for companies to sustain what they have and reduce taxes, you are not addressing the problem."

Chris Brown, president of the Wantagh Chamber of Commerce, threw his support behind the senators' plan Wednesday, noting that his medical supply company and other small firms have been hit hard by the Metropolitan Transportation Authority payroll tax and other new fees.

But the Senate Democratic majority, which this month will begin holding small-business roundtables to solicit ideas, criticized Senate Republicans for lacking fiscal discipline when they were in power.

And Gov. David A. Paterson's office, which assembled a small-business task force and received its recommendations, questioned how such a proposal would be funded.

"We'd be happy to take a look at this bill once they introduce it, and at that time we will also hopefully learn how they plan to pay for it," said Morgan Hook, Paterson's spokesman.


We're revamping our Comments section. Learn more and share your input.

More news