Energy Cost Assistance in New York
Issue Overview: Small businesses have cited high energy costs as a major obstacle to future growth, profitability and new job creation. To address this problem, the Senate advanced in their Upstate Now legislation (S.5953) a tax credit program that would help small businesses with the rising cost of energy. The bill would specifically provide a credit of two cents per kilowatt hour directly to eligible small businesses tax liability.
Businesses that do not owe taxes would receive a rebate check. The New York State Senate passed a Small Business Assistance Plan (S.1456) that would provide $350 million refundable tax credit to provide relief to small businesses (with 20 or less employees) from rising energy costs. The Senate plan would also eliminate the Petroleum Business Tax on non-residential heating fuel, further reducing energy expenses for small businesses.
NFIB Position: NFIB supports the energy plan because it would help more than 386,000 small businesses across New York State with the rising cost of energy. NFIB's December 2005 survey of small-businesses conditions in New York indicated that energy was the No. 1 factor driving up the cost of doing business.
Issue Status: The Senate's Upstate Now legislation was passed in the Senate and has not been introduced in the Assembly.
