Gov. Andrew Cuomo wants to eliminate the corporate income tax for manufacturers in upstate New York as part of a broad tax plan he plans to detail in his State of the State address this week.
Cuomo unveiled some of his tax proposals on Monday, two days before he’s scheduled to deliver his annual address near the state Capitol. Much of Cuomo’s plan was recommended earlier this year by a pair of commissions he created to offer recommendations on how to reduce taxes and simplify the state’s tax code.
When it comes to corporate taxes, Cuomo wants to reduce the tax rate from 7.1 percent to 6.5 percent. For manufacturers, Cuomo on Monday proposed funding a 20 percent property-tax credit, while reducing the corporate income-tax rate to zero for those located upstate.
“I think this is important. I think that businesses will get this,” Cuomo said at the state Capitol. “At a time when everything is going up in life, every cost is going up, you don’t hear about a cost going back to where it was in 1968. And that’s exactly what I want to do with the corporate tax rate.”
Among the major proposals is an income-tax credit that would essentially freeze property taxes for two years, but only if a resident’s municipality stays within the state’s 2 percent property-tax cap and agrees to share services with other local governments.
Cuomo’s plan also calls for tying property taxes to a homeowner’s income level and ability to pay. The circuit breaker plan, as it’s known, would be phased in as the property-tax freeze phases out, according to state Budget Director Robert Megna.