The manufacturing tax cut in the final 2014-15 state budget, which originally was proposed only for upstate, now includes all counties, including Rockland, Westchester and Putnam.
The cut means the net income tax rate will be reduced to zero as an incentive for manufacturing companies to continue economic growth, attract new businesses and create jobs, according to Assemblyman Ken Zebrowski, D-New City.
Zebrowski was the only Democrat to vote “no” on the one-house budget resolution for the Assembly, which is controlled by Democrats, in mid-March because it didn’t include the cut for Rockland. The county has lost several major manufacturers, including Novartis, which announced in January that it would close its Suffern plant and lay off 525 workers.
Sen. David Carlucci, D-New City, said excluding Rockland from the tax cut plan was unacceptable. “Our county deserves this incentive as much as anyone in order to attract new business and spur economic growth. I appreciate that my colleagues recognized my efforts and dissatisfaction, and finally included us in the final budget,” he said in a statement.
Assembly members Ellen Jaffee, D-Suffern, and James Skoufis, D-Woodbury, Orange County, also pushed for the manufacturing tax cut to apply to the region. Upstate is defined as north of the Metropolitan Transportation Authority region, whose Hudson Valley counties include Putnam, R0ckland, Westchester, Orange and Dutchess.
Jaffee has said excluding Rockland County would be discriminatory and the tax cut is an “economic magnet.”
Here’s the description of the tax cut from Gov. Andrew Cuomo’s news release on the budget deal earlier this week:
Cutting Manufacturer’s Taxes to Zero: The Budget agreement lowers the cost of doing business for manufacturers, making New York a more attractive place for firms to locate and create jobs. The Budget will establish a 20 percent real property tax credit for manufacturers who own or lease property and lowers the tax rate on income for all manufacturers from the current 5.9 percent to zero in 2014 and thereafter.
(Journal News file photo of Assemblywoman Ellen Jaffe and Assemblyman Ken Zebrowski.)