Economic & Job Creation Thwarted by State Budget Actions

As details of the State’s spending cuts included in the 2010-11 State Budget become clear, county leaders are alarmed over troubling statutory changes that will hinder current and future economic development in New York.The budget allows the Empire Zone Program to sunset on June 30, 2010, and defers several tax incentive programs designed to foster local economic growth. The budget defers 33 individual tax credits for three years.”This action sets a dangerous precedent for public-private partnership efforts used to spur economic development initiatives in our counties,” said Chemung County Executive Tom Santulli, president of the New York State Association of Counties (NYSAC). “I have worked hard with our local economic development organizations in the Southern Tier to bring in new businesses and jobs. These companies were promised incentives. How can it be legal for the State now to renege on this promise?”Under the provisions of the budget, corporate taxes would increase by the deferred amount during 2010 – 2013, in effect borrowing funds from private business that have already earned credits through their investments in New York. Deferring these tax credits, which are based on corporate investments, may have the opposite affect. New corporate investments and job creation may actually decrease as a result of these actions, further building on New York’s structural budget deficit.”A recession is the worst time for the State to turn its back on efforts to attract businesses and grow jobs. This is counter productive and confusing to businesses looking to locate or stay in our communities,” said Orange County Executive Ed Diana, president of the New York State County Executives Association.Among the deferrals include:· 9 Empire Zone Related Credits· Investment Tax credit· Employment Incentive Credit· Mortgage Recording Tax Credit· Mortgage Service Credit· Employment of Persons with Disabilities Credit· Alternative Fuels Credit· Low Income Housing Credit· Historic Rehabilitation Credit· Power for Jobs Credit· Historic Home Rehabilitation Credit· Green Building Credit· Brownfield Redevelopment Credit· Remediated Brownfield Real Property Tax Credit· Environmental Remediation Credit· Conservation Easement Credit· Commercial Production Credit· Bio-Fuels Production Credit· Clean Heating Fuel Credit· Solar Energy Credit· Transportation for the Disabled Credit· 4 other Minor Credits”All levels of government need to be united in maintaining and growing jobs. Our tax base is dwindling. Our population is decreasing. Many of those who remain in New York are on fixed incomes,” said NYSAC Executive Director Stephen J. Acquario. “We need to focus on growing our tax base through more strategic and effective economic development. The actions in this budget are simply not productive.”

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