NY A05371

Exempts taxpayers classified as manufacturers from all corporate franchise taxes under Article 9-A of the tax law for taxable years beginning January 1, 2011 or later.

Defines "manufacturer" as a taxpayer principally engaged in production of goods through manufacturing, processing, assembling, refining, mining, extracting, farming, agriculture, horticulture, floriculture, viticulture, or commercial fishing.

Establishes that a taxpayer is "principally engaged" when more than 50 percent of gross receipts derive from the sale of manufactured goods.

Exempts individuals whose primary activity is as a manufacturer from personal income tax liability and sets the minimum taxable income tax rate to zero for manufacturers beginning January 1, 2011 or later.

Applies exemptions to combined reporting groups if the combined group is principally engaged in manufacturing activities, with intercorporate receipts eliminated from gross receipt calculations.