NY A06479

Establishes the New York State Cornerstone Program to provide tax benefits to established businesses (operating at least 10 years) that maintain or increase employment levels, with participation limited to 10 years and Commissioner of Economic Development authority to certify eligible manufacturers, high-tech, bio-tech, clean-tech, and agri-business enterprises.

Creates the New York State Discovery Program administered by the Foundation for Science, Technology and Innovation to provide tax incentives to start-up businesses (operating 2 years or less) that offer internships to high school, BOCES, and college students and commit to increasing employment, with grants up to $2,000 per internship paid from a Job Development Fund.

Establishes a Cornerstone Development Board consisting of state commissioners and appointees from the Governor and legislative leaders to oversee the cornerstone program and requires annual reporting to the Governor and Legislature on program management and economic/fiscal impact by September 1 each year.

Provides tax credits for both programs including discovery investment credits (20% of qualified property costs) and discovery wage tax credits (6.85% of gross wages for net new jobs created) applicable to corporate franchise, insurance franchise, and business and occupation taxes.

Reduces corporate franchise tax rates effective January 1, 2011 from 7.1% to 6.85% for most taxpayers, reduces utility tax rates, reduces telecommunications excise tax from 2.5% to 2%, and eliminates the S-corporation tax beginning in 2011.