Lawmakers have extended indefinitely the state's investment tax credit (ITC) for the securities industry. This has been a top Business Council priority.
New York's powerful ITC has encouraged many businesses to invest in New York State. In 1998, lawmakers expanded the ITC to cover investments to securities firms, banks, insurers, and others in the financial sector in capital improvements and equipment used to conduct business.
This
ITC for the financial sector was due to expire in 2003, however.
The Council has strongly urged lawmakers to make it permanent.
"This
ITC has been effective in encouraging investment in the financial
sector, which is a critical part of New York's economy,"
said Business Council President Daniel B. Walsh. "Encouraging
and rewarding this investment is especially important now
as the financial sector in lower Manhattan faces major investment
decisions about where and how to rebuilt after the Sept. 11
terrorism."
Even
though the ITC was not due to expire until next year, The
Council has been urging lawmakers to act promptly to make
it permanent, Walsh noted.
"Major capital investment decisions are planned and debated for many months before they are made," he said. "Uncertainty about the future of this ITC could affect decisions about where to make capital investments."