Tom Rivers of the DailyNewsonline.com writes - “Gov. David Paterson and the majority of the state Legislature wants to scrap the Empire Zone program and come up with something new, a program that isn’t so generous to businesses.

The Empire Zone rewards companies that create jobs and make capital improvements. Local economic development agencies and state-wide business groups have praised the program for fueling business expansions in the state, including rural communities such as Genesee, Orleans and Wyoming counties.

Paterson’s budget proposal would retroactively apply new criteria for qualification to existing Empire Zone participants. A substantial number of the 9,800 businesses getting Empire Zone benefits could be removed from the program, including companies that have made major capital investments in New York, according to the Business Council of New York. The zone-certified companies employ approximately 380,000 people…

The Business Council of New York State, The New York State Economic Development Council and The Independent Power Producers of New York all oppose Paterson’s changes. The groups last week issued a joint statement, asking for the governor and Legislature to continue the program without drastically reducing the benefits.

The tax credits needed “to offset uncompetitive high costs, particularly property tax costs in New York,” the groups said in a news release.”

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