Scarinci Hollenbeck, LLC
The Firm
201-896-4100 info@sh-law.comFirm Insights
NY Budget Ends Corporate Income Tax For Manufacturers
Author: Scarinci Hollenbeck, LLC
Date: April 28, 2014
Key Contacts
Back
A number of states have been lowering their corporate tax rates in recent years in order to remain competitive for businesses and high-net-worth individuals. The most recent state to do so is New York, in which, for the first time since 1917, manufacturers will no longer pay the state’s corporate income tax, according to Newsday. Ending this tax may help the Empire State hold on to manufacturers, some of whom are leaving for states like Texas, Florida and the Carolinas, which boast lower tax rates.
Before the new budget, manufacturers had been paying 5.9 percent of their earnings in taxes, the news source explained. Other types of corporations, which had been paying a rate of 7.1 percent, will now see their tax liability lowered to 6.5 percent. The budget was approved at 12:01 a.m. April 1, the first day of the new fiscal year.
The new budget takes Gov. Andrew Cuomo’s Start-Up NY initiative, which had aimed to create tax-free zones in order to encourage innovation, and applies it throughout the state, according to Forbes. There has been a lot of talk about New York’s high tax burden, with Texas Gov. Rick Perry even going as far as to target New York businesses in an attempt to recruit them for his state, and it looks like this problem is being addressed by Albany.
From 1992 to 2010, the Empire State only experienced a continuous net gain of adjusted gross income from one state – Michigan, Forbes explained. In 2011, Michigan Gov. Snyder eliminated the Michigan Business Tax in favor of a flat corporate income tax rate of 6 percent. Many in New York are hoping that the new corporate tax break will help the state to remain competitive as other states continue to lower their tax burdens.
- Practices: Tax and Trusts & Estates
- Locations: Red Bank, NJ, New York City, Little Falls, NJ
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Related Posts
See all
Before You Buy: Managing Real Estate and Permitting Risk for BESS Projects in New York and New Jersey
For developers pursuing battery energy storage system (BESS) projects, finding the right property is only the beginning. BESS site selection is as much a legal and transactional exercise as a real estate decision, with risk analysis central to the project’s ultimate success. Key Takeaways The core questions for BESS site selection in New York and […]
Author: Nicholas Wall
What Business Owners Get Wrong Before Meeting a Litigation Attorney
What should you expect when meeting a litigation attorney about a business dispute? You should expect to describe the dispute in your own words, hand over the most important documents, flag any deadlines or immediate threats, and leave with a clearer picture of the problem, what information is still needed, and the likely next steps. […]
Author: Michael Mietlicki
Arbitration vs. Litigation vs. Mediation: What New Jersey Businesses Should Know Before Signing a Contract
Arbitration resolves disputes privately before an arbitrator whose decision is usually final, while litigation resolves them in court with full rights of appeal. Whether a business ends up in arbitration or litigation is often decided when it signs the contract, long before any dispute arises. Key Takeaways When facing a contract dispute, carefully consider your […]
Author: Graham Staton
Can You Own Part of a New Jersey Business Without a Written Agreement?
Can you own part of a business in New Jersey without a written agreement? Yes, it is possible. Under New Jersey’s Uniform Partnership Act, a partnership can arise when two or more people carry on a business as co-owners for profit, whether or not they ever intended to form one. Ownership doesn’t necessarily depend on […]
Author: Michael Mietlicki
Crisis-Proofing Your New Jersey Business: Building a Crisis Response Plan Before You Need One
For New Jersey businesses, crisis preparedness should be viewed as a legal and operational function, not simply an emergency-management exercise. A well-designed crisis response plan can help preserve evidence, protect confidential communications, meet reporting obligations, limit unnecessary exposure, and prevent an already difficult situation from becoming a larger legal problem. Key Takeaways A serious crisis […]
Author: Sean M. Pena
Monmouth County's Next Development Wave: What Developers and Investors Need to Know
Monmouth County is entering a significant new phase of development. For those looking to acquire property or undertake a new project, understanding the market opportunity is only the beginning. The more important question is whether a particular property can actually be developed as contemplated and what approvals, agreements, and other conditions will be required to […]
Author: Donald M. Pepe
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.