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Special Incentives for NY Manufacturers

Wayne Berkowitz, CPA, J.D., LL.M. 04.09.2014 | Client Alert

The recently passed New York State Budget provides meaningful incentive tax breaks for “qualified New York” manufacturers(1) including “qualified emerging technology companies”.  Notably, the bill extends beyond earlier proposals that would have applied only to “upstate” manufacturers. 

The following apply for tax years commencing on January 1, 2014 to qualified manufacturers state-wide.

  • Refundable real property tax credit: A refundable credit against both the corporate franchise tax and the personal income tax of 20% of real property taxes paid.
  • Zero rate of corporate level tax:  Under the franchise tax.

(1) The term “manufacturer” is defined to include entities that produce goods by manufacturing, processing, assembling, refining, farming, agriculture, horticulture, floriculture, viticulture or commercial fishing—as long as the entity has a minimum amount of property (by reference to tax basis) in New York State and derives more than 50% of gross receipts from the sale of goods attributable to the relevant activity.  A qualified New York manufacturer is a manufacturer that has certain manufacturing property in New York with a federal adjusted basis at the end of the year of at least one million dollars or has all of its real and tangible personal property located within New York.


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