IPPNY Supports Governor Cuomo's Tax Reforms
Changes will Reduce Barriers to Doing Business in New York
Albany, N.Y., 1/21/14 - The Independent Power Producers of New York, Inc. (IPPNY) commends Governor Andrew M. Cuomo for recognizing the detrimental financial impact on New York businesses of a complicated tax structure and proposing positive changes in his 2014-2015 Budget Address. The Governor has recommended the reduction of the rate of the Corporate Franchise Tax from 7.1 to 6.5 percent as well as the partial elimination and expedited phase-out of the temporary surcharge on utility bills under Section 18-a of the Public Service Law.
IPPNY President & CEO Gavin J. Donohue said that these proposals will improve the economic competitiveness of New York and help the economy grow. "Streamlining the tax structure and lowering the tax rate will provide relief for IPPNY Members and other New York businesses." Regarding the immediate elimination of the 18-a tax on industrial customers and the acceleration of its phase-out for remaining customers, Donohue said that the time has come for this temporary charge to end. "New York already has among the highest electric bills in the country, with up to 70 percent of a typical residential bill being comprised of delivery charges and State-imposed taxes and fees - including the 18-a surcharge. The 18-a assessment is a tax on all New Yorkers that further stifles economic growth and creates barriers to living and working in this state."
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The Independent Power Producers of New York, Inc. (IPPNY) is an Albany-based trade association representing the competitive power supply industry in New York State. IPPNY Members generate over 75 percent of New York's electricity using a wide variety of generating technologies and fuels including hydro, nuclear, wind, coal, oil, natural gas and biomass.
