Leibell Proposes Business Tax Credit for Job Creation

Businesses creating new jobs could benefit by receiving a $2,500 to $5,000 tax credit for each position established under an initiative conceived by State Senator Vincent Leibell.

"There is only one way to come out of a recession, and that's to create jobs. One of the tragedies of the last year in Washington resulted from President Obama's failure to push for job creation. Things can be done in New York as well as in Washington to help the faltering economy immediately—one of which is to give a tax incentive to businesses and entities that will create employment. New York must proceed immediately in this year's state budget," said the veteran senator.

Leibell sat down with the PCN&R to outline his initiative. "The plan will keep people working," said Leibell, who added: "It will give small businesses from Brewster to Buffalo real incentives to create jobs and get our economy moving in the right direction."

Ed Galligan, owner of the Carmel Flower Shop, urged the senator to "push hard in making this law become reality. The small businessperson needs help and the new jobs initiative that reduces taxes while encouraging new job creation makes sense."

Leibell stressed that the tax credit proposal would apply only to new jobs. Leibell said his proposal also would place a moratorium on new business fees and taxes as well as eliminating corporate franchise tax for hundreds of small businesses with 50 or fewer employees and garnering less than $2 million in annual income.

While the legislation seems promising in stimulating the local economy, Robert Farley, chief counsel for the senator, stressed Tuesday that the bill was in its embryonic stage: "The bill has just been introduced by Senator Leibell in the Senate and while he has been talking it up in the Assembly, there are no sponsors at this time in the lower house."

Farley said he couldn't imagine that Gov. Paterson would not endorse the legislation because "we are talking about revitalizing the economy in the private sector by creating new jobs." Farley also said he saw no negative implications for taxpayers should the Leibell bill become law.

When asked if he had any timetable, Farley replied: "The bill would become effective immediately; however, tax credits for local businesses would not occur until the following fiscal year."

In 2009, New York State lost 269,000 jobs. Leibell said the governor's budget projects an additional 40,000 jobs will be lost by year's end: "A novel approach is needed to stop the bleeding and job loss. My proposal will provide a much-needed shot in the arm for our state's stagnant economy."

Putnam Legislature Chairman Vincent Tamagna called small business "America's future. The small businessman and businesswoman will grow us out of the economic mess. The senator's job creation plan will allow for growth and success for the future."

Kevin Bailey, president of the not-for-profit Putnam County Economic Development Corporation, liked the idea, calling private sector job creation "our state's top priority. The tax credit idea for job creation will be a winner because our county, our region, and our state have lost thousands of jobs because New York taxes too much."