Scarinci Hollenbeck, LLC
The Firm
201-896-4100 info@sh-law.comFirm Insights
Author: Scarinci Hollenbeck, LLC
Date: August 5, 2015
The Firm
201-896-4100 info@sh-law.comLast week, New York state legislators passed a bill that makes businesses held accountable for tax incentives if they do not meet job creation goals. The bill is a significant development because the state tax incentives totaled $554 million last year, a nine percent increase over 2013.
The new law is expected to take effect within the next six months. Industrial development agencies play a key role in employment creation with tax breaks enabling these companies to relocate to New York state. These tax breaks and incentives are viewed as vital aspects of conducting business in New York state because they help companies offset other tax and utility expenses. Ultimately, the new law means that industrial development agencies in New York state will be required to create policies in the event of discontinuing tax breaks when a company halts operations, relocates or misses job creation and retention goals. Therefore, employers will now be held responsible for meeting the job creation goals they set in order to qualify for certain state business tax breaks.
However, according to the New York State Comptroller’s Office, these businesses and real estate development firms have established job creation goals for the tax breaks without following through on their promises. Comptroller Thomas DiNapoli was critical of the system in place because it does not hold companies accountable for ensuring that they reach their specific quotas for job creation. The goal of the new legislation is to make these businesses and industrial development agencies more transparent. With more scrutiny in the process of industrial development agency project applications, DiNapoli feels that requiring agreements in the project will ensure that companies meet job creation goals. Otherwise, their tax incentives will be revoked and they will be responsible for the unpaid taxes. Ultimately, DiNapoli feels that the new legislation will increase the benefits of job creation.
“By increasing scrutiny of IDA project applications and requiring project agreements to include the recapture of benefits if job creation goals are not met, we can address many of the concerns raised in audits by my office over the years,” noted DiNapoli.
The significance of the tax incentives was highlighted in the legislation, particularly in the Albany region. Albany was awarded 397 projects in 2014, with $93.7 million in tax exemptions, more than any other region in the state. This included a series of recent major industrial development projects such as the $110 million restructuring of the Albany Medical Center.
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Corporate consolidation involves two or more businesses merging to become a single larger entity. The result is often a stronger and more competitive company that can better navigate today’s competitive marketplace. What Is Corporate Consolidation? Corporate consolidation closely resembles a basic merger transaction. The primary difference is that a consolidation creates an entirely new business […]
Author: Dan Brecher
Business law plays a critical role in nearly every aspect of running a successful enterprise, from negotiating a commercial lease to drafting employee policies to fulfilling corporate disclosure obligations. Understanding what is business law and your legal obligations can help your business run smoothly and build productive relationships with clients, business partners, regulators, and others. […]
Author: Dan Brecher
Corporate transactions can have significant implications for a corporation and its stakeholders. For deals to be successful, companies must act strategically to maximize value and minimize risk. It is also important to fully understand the legal and financial ramifications of corporate transactions, both in the near and long term. Understanding Corporate Transactions The term “corporate […]
Author: Dan Brecher
Ongoing economic uncertainty is forcing many companies to make tough decisions, which includes lowering staff levels. The legal landscape on both the state and federal level also continues to evolve, especially with significant changes to the priorities of the Equal Employment Opportunity Commission (“EEOC”) under the Trump Administration. Terminating an employee is one of the […]
Author: Angela A. Turiano
While filing annual reports may seem like a nuisance, failing to do so can have significant ramifications. These include fines, reputational harm, and interruption of your business operations. In basic terms, “admin dissolution for annual report” means that a company is dissolved by the government. This happens because it failed to submit its annual report […]
Author: Dan Brecher
Antitrust laws are designed to ensure that businesses compete fairly. There are three federal antitrust laws that businesses must navigate. These include the Sherman Act, the Federal Trade Commission Act, and the Clayton Act. States also have their own antitrust regimes. These may vary from federal regulations. Understanding antitrust litigation helps businesses navigate these complex […]
Author: Robert E. Levy
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
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.
Let`s get in touch!
Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!