State Senate Sets Economic Growth Bill
The Senate Democratic Majority recently passed a comprehensive jobs package of 10 bills that will put New Yorkers back to work, create new jobs and spur economic growth for businesses across the state. The Majority’s jobs plan, which comes immediately after the Senate Majority passed Energizing New York, a permanent program to replace Power for Jobs, will:
• Establish “land banks” in order to foster the development of vacant and abandoned property;
• Extend by 7-years the Empire Zone capital credit for not-for-profit projects;
• Provide small businesses with an SBA loan tax credit to encourage business growth;
• Encourage modern companies with tax credits for start-up technology companies;
• Clarify the definition of work activities to include work-study and internship positions.
Senate Majority Conference Leader John L. Sampson said, “To work our way out of fiscal crisis, we must get New Yorkers back to work. By investing in small businesses we can create the lasting jobs and strong businesses New York needs for sustainable economic growth.”
Because job creation and economic revitalization are the Senate Democrats top legislative priority, this plan complements many initiatives that have already become law which have helped save or create 400,000 jobs, safeguarding New York’s workforce from the full effect of the national recession.
Energizing New York
The Senate Majority has taken the lead on putting New Yorkers back to work by passing legislation to reform the state’s low cost power for economic development programs, including the expired Power for Jobs, by creating a new streamlined “Energize New York” program that positions the state for long term job growth.
Power for Jobs
Supporting more than 330,000 jobs, primarily Upstate and on Long Island, Power for Jobs provides low-cost energy to participating businesses who, in turn, keep jobs in New York State.
Green Jobs NY
The first-in-the-nation “green jobs” program, this plan creates 14,000 good-paying construction jobs, lowers energy costs, and weatherizes more than one million homes. Local contractors, certified to perform the retrofits will be able to expand their crews, creating new and permanent jobs in green construction and additional jobs in local businesses and manufacturing that serve those new workers. TANF/Federal Stimulus Funds Targeted to Infrastructure Upgrades and Community Needs
Targeted federal reconstruction dollars are developing a 21st century infrastructure model for New York, creating 50,000 new construction jobs in the process, as well as adding resources and new jobs to fields which have seen their need grow since the economic decline, including non-profit and community-based organizations. These funds also placed nearly 1,400 new police officers on the streets and supported Welfare-Work initiatives for low income New Yorkers.
Other programs already passed by the Senate include reforms to the Minority- and Women-Owned Business (MWBE) program and IT-insourcing. Senate Majority Job Creation Plan Establishing Land Banks for Abandoned Properties
S4281A / Valesky: A stagnant Upstate economy, along with associated population decline, has resulted in a large number of vacant and abandoned properties. One example is the City of Buffalo, which has more than 20,000 vacant land parcels, 500 vacant structures and over 22,000 vacant residential units. This bill seeks to solve the problems of vacant and abandoned property by encouraging the development of these properties to promote economic growth through the establishment of land banks. As type-C notfor profit corporations, the land banks will have the ability to manage and revitalize such property without existing legal constraints. Extending the Empire Zones Capital Tax Credit
S7675 / Stachowski: This unique tax credit, a little known part of the Empire Zones Program, would otherwise sunset with the Empire Zone Program on June 30, 2010. According to not-for-profits throughout the state, this credit has proved to be very valuable in attracting investments and contributions, especially for those organizations located in distressed areas. Clarifying Definition of Work Activities
S7336 / Squadron: This bill would allow certain public assistance recipients to participate in work-study and internship positions and have those hours of participation count toward the recipient’s work activity requirements. Work-study and internship positions have provided many individuals with the experience and the opportunity to transition from assistance to employment through a combination of employment activities and education. Such activities should, in many instances, be countable toward the student’s work participation requirements.
Stimulating Small Businesses
This package of five bills aims to foster economic growth and activity for small businesses throughout New York.
S6696 / Foley: This legislation will allow small businesses that have paid a loan guaranty fee to the SBA in order to obtain an SBA 7(a) guaranteed loan to receive a tax credit for the fees that are part of the SBA loan program. In an effort to encourage business growth and to assist small businesses, a number of other states have been providing tax credits for the fees which are part of the SBA loan program. New York State should offer its small businesses the same tax credit for any fees paid to the SBA in order to obtain a loan.
Senator Brian X. Foley (D-Blue Point) said, “In today’s economic situation, we must take every opportunity to help small businesses survive. Small business is the cornerstone of many of our communities. Providing businesses with a tax credit totaling the amount of fees paid to receive a guaranty loan will give them a little bit of a break. Many of the small business owners I have talked to have said that this is exactly what they need - a little bit of help to keep their heads above water and keep their businesses open.”
S3477 / Perkins: A “niche market” is a targeted market comprising individuals and businesses that have similar interests and needs which can be readily identified and that can be easily targeted and reached, or groups of potential customers who share common characteristics making them especially receptive to the company’s product, services or opportunity. S3477 establishes a competitive program to provide grants of up to $200,000 to a not-for-profit corporation or Manufacturing Extension partnership program with a demonstrated capacity to conduct market analysis and target new markets for niche products for manufacturers, to enable the grant recipients to work with and assist small manufacturers identify and develop niche markets.
Senator Bill Perkins said, “Small business enterprises make up a large percentage of employment in the manufacturing sector. This bill will assist not only in their survival, but in their ability to expand and be innovative, as well as to create and maintain job growth.”
S8028 / Stachowski: This legislation calls for the creation of the New York State Task Force on Health Care Cost Reduction through Entrepreneurial Innovation with the responsibility of producing a comprehensive statewide plan for the development of industries that deliver products and services that will reduce the cost of health care while creating jobs and stimulating economic activity throughout the state. This bill aims to encourage the cooperation of health care providers, manufacturers, service providers, researchers and engineers to develop innovative solutions to health care issues.
S7048 / Stachowkski: Business incubators can play an integral role in New York State’s innovation economy by providing start-up and early-stage companies with the resources and technical know-how to become viable, independent companies. This bill would establish an incubator network within NYSTAR to bring continuity, stability and standardization in the delivery of incubator services to the technology transfer and commercialization process.
S7729A / Krueger: This legislation authorizes the Urban Development Corporation to award grants, on a competitive basis, to local development corporations, municipalities, educational institutions, and other not-forprofit organizations for the costs involved in starting or expanding a kitchen incubator/shared-use facility. The bill is intended to facilitate the growth of food-related businesses using the business incubator model that has been so successful in other industries.
Encouraging High-Tech Businesses
S1229 / Thompson: One of the cornerstones of economic growth in New York State is research and development in science and technology at nonprofit research institutions in the State that may have commercial potential and that can result in the formation of knowledge-based industries. This legislation expands the availability of tax credit refunds for start-up technology companies to help them overcome certain barriers to the commercialization within New York State of scientific and technological discoveries from nonprofit research entities located in the State.
S8016 / Stachowski: This bill creates the “Mobile High-Technology Training Facilities Program” within NYSTAR to award competitive grants to qualified applicants for the development of mobile high-technology training facilities.