Statement from MACNY President & CEO: Assembly One House Budget Includes Manufacturers Tax Parity
Date: March 15, 2022
Issue: Tax Parity for All New York Manufacturers
Statement from MACNY President & CEO Randy Wolken
Assembly One House Budget Includes Manufacturers Tax Parity
MACNY – The Manufacturers Association of Central New York and the Manufacturers Alliance of New York State today announced that the Assembly One-House Budget Proposal includes tax parity for manufacturers in New York State. It would phase in a zero percent tax rate for manufacturers over three years. For the first time, manufacturers organized as S-Corps, proprietorships, LLCs or “pass-through entities” would be treated the same as larger manufacturers. This would make New York State one of the most competitive places to retain or locate a manufacturing company.
We are calling on the State Legislature and Governor to include this tax parity in the final state budget which is due on April 1. This would provide tax relief to New York’s small-to-medium sized manufacturers that continue to recover from the pandemic. Also, it would put them on a level playing field with manufacturing companies in other states with no or low income tax rates and with C-Corp manufacturers already located here in New York.
In 2014, a zero percent corporate franchise tax rate was enacted for manufacturers organized as C-corps. This tax cut accounted for only 25% of manufacturing companies in New York State. While it provided significant help to those manufacturers, it left 75% of manufacturers still paying one of the highest tax rates in the nation.
We are grateful to the State Assembly for including this critical language in its One-House Budget Proposal and to Assemblyman Al Stirpe who sponsored the original Assembly bill.