Senate & Assembly One-House Budget Recap: What’s In
This week, the New York State Senate and Assembly released their one-house budget proposals for the 2022-23 New York State Budget.
Here is a recap of some of the important things that were included in these one-house proposals, this does not include all budget items, just the ones we felt were most important to our members:
Clean Water, Clean Air, and Green Jobs Environmental Bond Act (TED, Part NN, OO) – Modified (increased) in both houses
The Governor’s proposal includes a $4 billion “Clean Water, Clean Air, and Green Jobs Environmental Bond Act.” The bond act would support capital improvements and enhancements in the following areas: flood risk reduction/restorations; open space, working lands conservation, and recreation; climate change mitigation; and water quality improvement and resilient infrastructure. The bond act would go before voters as a ballot measure during the November 2022 general election.
This proposal also requires the payment of prevailing wage as well as the use of Project Labor Agreements for any construction related to this act.
Brownfield Cleanup Program (TED, Part LL) – Senate accepts and modifies, Assembly rejects
There are changes to the Brownfield Cleanup Program proposed in the budget. The application sunset date is extended by five years due to continued program demand. The program would also expand to provide new categories of eligibility for tangible property credits, to incentivize cleanups in disadvantaged communities. The budget also establishes a program fee that would be deposited into the Hazardous Waste Remediation Fund to support the program.
This proposal would expand the prevailing wage to be applied to projects that receive Brownfield tax credits. These credits were carved out of the original expansion of prevailing wage in the 2020 budget.
Extend the Infrastructure Investment Act (TED, Part AA) – Both houses accept and modify
The Governor’s proposal extends the authorization of certain state entities to utilize design-build contracts for capital projects through December 31, 2027. There are PLA and prevailing wage provisions included in this section.
Accelerate the Middle-Class Tax Cut (REV, Part A) – Accepted by both houses
The Governor’s proposal accelerates the middle-class tax cuts to take effect in tax year 2023. Households making $43,000-$161,000 and individuals making $20,000-$80,000 will have their tax rate lowered from 6.09% to 5.97%. For households making $160,000-$323,000 and individuals making $80,000-$215,000, the tax rate will be lowered from 6.41% to 6.33%.
Extend the Authorization of Revenues to and Costs from the Dedicated Highway and Bridge Trust Fund (TED, Part P) – Both houses accept
The Governor’s proposal extends various motor vehicle transaction fees.
Authorizes DASNY to Provide Services to Not-For-Profit Corporations (TED, Part EE) - Rejected by both houses
The Governor’s proposal would expand DASNY’s ability to service not-for-profit corporations for capital infrastructure projects costing less than $5 million.
Extend and Enhance the Hire-A-Vet Tax Credit for Three Years (REV, Part H) – Accepted and Modified in both houses
The Governor’s proposal extends the Hire-A-Vet tax credit through tax years beginning before January 2026 for veterans who begin employment before January 2025. The bill also includes Space Force veterans, eliminates the requirement that they be discharged after September 11, 2001 and increases the credit to 15% of the wages paid to the hired veteran. In addition, the cap is increased to $15,000 for full time veterans and $7,500 for part time veterans.
Provide Small Business Tax Relief (REV, Part C) – Accepted by both houses, modified in Senate
The Governor’s proposal increases the small business subtraction modification for taxpayers from 5% to 15% of the net business or net farm income. The bill also expands the definition of a small business to include LLCs, partnerships or New York S corporations that is not a farm and employs one or more people with a gross business income of less than $1.5 million.
Create a Tax Credit for Small Business COVID-19 Related Expenses (REV, Part E) – Accepted in both houses, modified in Assembly
The Governor’s proposal provides a refundable credit to small businesses with $2.5 million or less of gross receipts that incurred capital costs between January 2021 and December 2022 to comply with public health or other emergency orders related to the COVID-19 pandemic. Businesses are eligible for a credit of 50% of their qualifying costs, up to $25,000. The program is capped at $250 million.
Small Business Seed Funding Grant Program (TED, Part CC) – Accepted, Modified, and expanded by both houses
The Governor’s proposal provides funding to micro and small businesses incorporated and licensed or registered in New York State; have between $5,000 and $1 million in gross receipts or expenses of at least $10,000 and started operations on or after March 1, 2019. Grants will be provided through Empire State Development.
Increase the State Low-Income Housing Tax Credit Aggregate Cap Growth (REV, Part J) – Accepted in both houses
The Governor’s proposal increases the aggregate dollar amount for the low-income housing tax credit by $7 million for 2022-2025.
Extend the New York Youth Jobs Program Tax Credit for an Additional Five Years (REV, Part N) – Accepted in both houses
The Governor’s proposal extends the credit for employers that employ at-risk youth through December 31, 2027.
Extend the Empire State Apprenticeship Tax Credit for an Additional Five Years (REV, Part O) – Accepted in both houses
The Governor’s proposal extends the tax credit for hiring new qualified apprentices through 2027.
Extend the Clean Heating Fuel Tax Credit for Three Years (REV, Part K) – Accepted in both houses
The Governor’s proposal extends the $.01 per percent of bio-heating fuel (not to exceed 20 cents per gallon) for purchasing bio-heating fuel for residential purposes until January 2026.
Provide Tax Credits for the Phase-Out of a Certain Grade of Fuel Oil (REV, Part I) – Accepted in both houses, modified in Senate
The Governor’s proposal creates a new Grade No. 6 Heating Oil Conversion Tax Credit equal to 50% of the conversion costs paid during January 1, 2022 and before July 1, 2023, not to exceed $500,000 per municipality.
Extend the Alternative Fuels and Electric Vehicle Recharging Property Credit for Five Years (REV, Part P) – Accepted in both houses, modified in Senate
The Governor’s proposal extends this credit through December 31, 2027.
Extend the Workers with Disabilities Tax Credit for Six Years (REV, Part Q) – Accepted in both houses, modified in Senate
The Governor’s proposal extends the tax credit for employers that hire workers with disabilities through January 1, 2029.