Assemblymember Phil Steck (D-Colonie) announced that the Assembly passed legislation he authored to ensure businesses receive tax credits under the Empire Zones program (A.9220-C). The legislation would fix a bureaucratic requirement that is preventing a local company, Precision Valve & Automation, from getting the tax credits it needs to invest and create jobs. The measure has also been passed in the Senate and will await consideration from the governor.
Precision Valve qualified for the tax credit but then the State Tax Department decided unexpectedly to limit the tax credit only to manufacturing for sale in New York. Much of Precision Valves work involves manufacturing robotic devices for export. The company was declared ineligible despite the fact that it is a fast-growing enterprise employing about 180 people in the region.
Local businesses like Precision Valve & Automation are driving forces for sustainable economic growth in our region, said Assemblymember Steck. Theres no reason these companies, which provide hundreds of good-paying jobs in our community, should be denied tax credits designed to support job creation. The point here is jobs, not whether sales are in New York or overseas. In fact, we want to encourage manufacturing for export. That is good for our economy, as it reduces our balance of trade problem. When Upstate New York was a leader in manufacturing, much of our manufacturing was for export.
With the passage of this bill, I hope that this legislation will encourage businesses to consider remaining and investing in New York, said Tony Hynes, CEO of Precision Valve & Automation. I want to thank Assemblymember Phil Steck and the Albany-Colonie Regional Chamber for their advocacy and tenacity in addressing a significant tax credit issue. Assemblymember Steck met Mr. Hynes on a visit to Precision Valves facility on a tour of local businesses arranged by the Chamber.
When Precision Valve & Automation came to us for assistance with their tax issue, we immediately turned to Assemblymember Steck to assist us in finding a legislative fix that would allow PVA to grow and prosper right here in the Capital Region, said Mark Eagan, President and CEO of the Albany-Colonie Regional Chamber of Commerce.
Moreover, Precision Valve & Automation is committed to expanding its operations right here in the Capital Region. If the company were to receive the tax credits, it would be able to invest about $5 million in its Latham plant and hire about 30 new employees. Instead, the company is being told by the state tax department it owes $100,000 in unpaid taxes, which is preventing its expansion and forcing it to look out of state for locations to expand.
The state tax department cant change the rules in the middle of the game and impose arbitrary requirements on local companies, said Assemblymember Steck. This legislation will right a wrong that is hurting job creation and preventing economic growth in our community.