New York Governor Andrew Cuomo released his FY14-15 budget on January 21, 2014, which was subsequently revised by 21-day and 30-day amendments on February 12, 2014, and February 21, 2014, respectively. Click here for our summary of the budget as introduced, and here for our summary of subsequent amendments.
In addition to substantial tax reform, the budget also proposes significant changes to the state’s tax credits regime. If enacted, for tax years beginning on or after January 1, 2014, such tax credit changes include: prohibiting certain retroactive tax credit claims, revising the definition of a qualified New York manufacturer, repealing the existing Investment Tax Credit for certain taxpayers, establishing a new ‘refined’ Investment Tax Credit, and creating a real property tax credit for qualified New York manufacturers. Several existing tax credits would also be revised, including the Brownfield Cleanup Program, the Youth Works Program, and the Empire State Commercial Production Tax Credit.
Finally, in addition to the creation and modification of tax credits, the proposed legislation would revise the manner in which the MTA Surcharge tax is calculated for taxpayers claiming tax credits on their New York State tax returns.