In an op-ed in today’s Times Union, Kenneth Adams, president and CEO of The Business Council, expresses his concern that state government is creating a climate of uncertainty in New York, rather than fostering an environment that encourages private sector investment and job creation.

“The nation may be creeping out of the recession. Second quarter corporate earnings reports are encouraging. Manufacturing is doing well. The banking sector is on solid ground again. Exports are up.

Still, employment numbers remain grim, and if there is one state likely to suffer a “jobless recovery,” it’s New York.

Just when the rest of the state recognizes that the only thing that matters is private sector job growth, Albany has come up with a new strategy to deter investment and discourage companies from hiring: uncertainty.

New York business owners have had to cope with high taxes and burdensome regulations for decades. Now there’s more. It has become increasingly hard to predict what’s next in the state’s business environment. The uncertainty created by state government is stripping away something business owners depend on in tough economic times: predictability.

It’s not just that politicians have spent seven months unable to agree on a state budget. The sense of uncertainty is exacerbated when policy makers can’t make up their minds or break promises previously made to the business community.

Beyond several anti-business measures built into the 2011 budget, the two worst decisions for the long-term economic health of New York involve the state violating commitments it made to firms that have been playing by the rules and investing here.

First, a three-year deferral of already earned tax credits. Many companies have made significant investments to create and retain jobs in New York, clean up brownfields or make their facilities cleaner and more efficient. Part of their calculation in making those investments included tax credits to offset the high cost of doing business here. Now the state says, “Hold on, you can’t get your credits until 2013.”

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A bi-partisan coalition of lawmakers today introduced new legislation the U.S. House of Representatives that would provide an investment tax credit for new innovative technology that produces clean, zero-emission electricity from waste heat generated by industrial processes. The Heat is Power Act, sponsored by Representatives Paul Tonko (NY-21), Jay Inslee (WA-01), Shelly Berkley (D-NV-01) and Ron Paul (TX-14), would help stimulate growth in the waste heat to electricity market and create new jobs.

“This tax credit creates an incentive for a renewable technology with the potential to create jobs and allow American companies to export to other countries,” said Congressman Paul Tonko (NY-21). “It’s critical that we embrace these new innovations in clean energy that will help lessen our dependence on fossil fuels and reduce energy costs.”

“We shouldn’t allow clean energy produced by waste to go wasted,” said Rep. Jay Inslee (WA-01). “By implementing this policy, we will be able to incentivize the deployment of technologies that can capture thermal energy from waste and convert it to electricity.”

The Heat is Power Act would modify sections 45 and 48 of the U.S. tax code to include waste to heat and provide a 30% investment tax credit for the installation of the technology in industrial settings. American companies have created technology that can harness heat waste from smokestacks and other industrial processes such as oil and gas production and turn that energy into zero-emissions electricity. The tax credit will put this technology on the same footing as other renewables such as wind and solar power, and help develop a new, American clean energy industry that will lead to job growth.

The development of a domestic waste heat market will also position the U.S. to capture the global market in clean energy exports and create manufacturing jobs here in America for decades to come.

According to a Quinnipiac Poll, “New York State government is dysfunctional, 83 percent of voters say, the highest number ever measured in the state, according to a Quinnipiac University poll released today.

A total of 80 percent of New York State voters are “somewhat dissatisfied” or “very dissatisfied” with the way things are going in the state, also the highest dissatisfaction ever in New York, the independent Quinnipiac (KWIN-uh-pe-ack) University poll finds.

New York State voters say 59 - 21 percent that all candidates for state office should sign a pledge that they will support the creation of an independent group to draw legislative district lines. There is no difference in support among Democrats, Republicans or independent voters.

Nineteen percent of voters would vote against a candidate who refuses to sign the pledge on that issue alone. There is little difference in support among political or regional groups.

New York State voters disapprove 76 - 16 percent of the way the State Legislature is doing its job, the highest disapproval ever recorded for this group.

To clean house in Albany, all New York State senators, even their own local senator, should be voted out of office this November, voters say 51 - 36 percent. Voters say 50 - 34 percent that State Assembly members, even their own representative, should go, too.

“New Yorkers are fed up with Albany. The resentment is bigger than we’ve ever measured. Just about half think that the whole Legislature should be voted out of office - even their own state senator and Assembly member,” said Maurice Carroll, director of the Quinnipiac University Polling Institute.”

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Nick Reisman writes on LoHud.com - “The lazy days of summer continued for state lawmakers on Wednesday as they briefly gaveled in and out of session and took no action to complete a state budget, now more than 17 weeks overdue.

The Legislature returned to Albany at the order of Gov. David Paterson, but the governor’s attempt at getting lawmakers to act on the budget or a host of other issues fell flat. Each session day, in which legislators receive $171 for food and lodging, ends up costing taxpayers about $100,000.

Lawmakers have another shot at getting something done today. Both the Senate and Assembly plan to meet at 10 a.m.

The state’s fiscal year began April 1, but Paterson and lawmakers have yet to reach a final deal on the roughly $136 billion spending plan.

After session started around 6:30 p.m. in the Assembly and Senate, lawmakers recited the pledge and the proclamation calling the special session by Paterson was read.

But no votes were cast on any matter in either house. They adjourned for the day slightly before 7 p.m.

They are on pace to break the record for the latest state budget, set Aug. 11, 2004.

Even if the Democratic-led Legislature wanted to act, they were limited in their ability to do so.”

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Recent IRS announcements

IR-2010-80 Closing Deadline Extended to Sept. 30 for Eligible Homebuyer Credit Purchases

The IRS has just recently update their web site here are some highlights:

IRS Small Business & Self Employed Tax Center

This section offers a broad range of resources across federal and state agencies, as well as industry/profession specific information for self-employed entrepreneurs, employers and businesses.

IRS Virtual Small Business Tax Workshop

Nine interactive lessons designed to help new small business owners learn their tax rights and responsibilities.

IRS Video Portal

The IRS Video Portal offers video and audio presentations on tax topics for small businesses, individuals and tax professionals.

It is critical that the legislature adopt a new, statewide economic development power program in the 2010 session.

The Power for Jobs and the Energy Cost Savings Benefit programs expired on June 2, 2010, leaving several hundred energy-intensive businesses facing higher costs and uncertainty regarding future power supply and prices.

Kenneth Adams, President & CEO of The Business Council of New York State, Inc. stated, “New York needs a permanent economic development power program now. Competitively priced power is crucial for employers and workers across New York, and particularly for upstate manufacturers. We support legislation that has already passed the Senate with broad, bipartisan support, and deserves broad Assembly support as well. A permanent power program will support hundreds of energy-intensive businesses and tens of thousands of high paying jobs.”

We strongly support Assembly approval of S.8065, which has already passed the Senate with broad, bipartisan support (vote of 59 to 2).

This legislation includes key provisions necessary to support high paying jobs and promote new capital and energy efficiency investments, resulting in significant economic returns to the state. These include:

• A new, permanent program to replace the Power for Jobs and Economic Development Power programs that will provide predictability and certainty for program participants.
• A 910 MW program that will give the state more economic development power resources than are available under expiring programs, that can accommodate new program participants statewide.
• Allocation-based power benefits and long-term contracts of up to seven years that will provide competitive, stable electric power prices to energy intensive businesses.
• Eligibility criteria that assure significant, long-term economic return to the state, including the number and value (wages and benefits) of jobs created and retained, investments in capital equipment and energy efficiency, the significance of energy costs to a business’ competitiveness, and the local economic significance of the facility.

To read more click here.

In response to Governor Paterson’s announcement that he is calling the Legislature back to address unfinished business, statewide business groups have joined together in urging the Assembly to immediately take up and pass Energize New York. Energize New York, a long term fully sustainable energy economic development power program bill, has been endorsed by the Administration, and previously passed the Senate this session with overwhelming support. To date, Assembly leadership has refused to bring the critical bill to the floor for a vote.

This issue has risen in urgency with the already expired short term Power for Jobs, Energy Cost Savings benefits and High Load Factor Programs that were discontinued over a month ago. If the current programs expire without a long term solution passed, businesses statewide will be heavily impacted, seeing an immediate sharp rise in their electricity costs, already some of the highest in the nation. If not addressed immediately, a lapse in energy benefits, coupled with the high costs of doing business in New York State and our current economic crisis will cause catastrophic results to the state’s economy, including employee layoffs, downsizing, relocation and potential closings.

Energize New York has already received praise and overwhelming support from businesses and economic development organizations statewide. Supporters understand that a long term program will assist New York State in weaving through this current economic crisis by supporting jobs and critical businesses that sustain our economy, produce vast economic benefits to the State, allow businesses to make long term investments, and make New York State more competitive in retaining businesses to open or relocate to our State. The Energize New York bill also contains substantial retroactive language, meaning businesses would be held harmless for any high costs of electricity they may encounter during the current lapse in the preexisting short term Power for Jobs programs.

Of additional importance, the Energize New York bill has received overwhelming bipartisan support in the Senate, passing with a vote of 59-2, with cosponsors Senator Aubertine (D-Cape Vincent) and Senator Maziarz (R-Newfane) leading the charge. The Administration also publicly endorses Energize New York. Governor Paterson made this point known when he released his list of unfinished and important items to be addressed this week, and included Energize New York as one of these issues.

To read more click  statewide-to-assembly-pass-energize-ny-07-27-2010

From Cuomo 2010 - “Andrew Cuomo and Nassau County Executive Ed Mangano today joined together to rally support to pass a statewide property tax cap. As part of his New NY Agenda, Cuomo has proposed a property tax cap that would limit increases in property taxes, both for local government and schools, to two percent annually or the rate of inflation whichever is lower. Mangano today announced his support for Cuomo’s plan. To build public support for his property tax cap, Cuomo today launched www.capNYpropertytaxes.com, an on-line resource for New Yorkers to learn about Cuomo’s plan and to directly contact their state representatives to urge them to support the cap.

Republican Rick Lazio has proposed a 2½ percent cap and Buffalo-area developer Carl Paladino, wants state and local tax cuts but hasn’t specifically advocated a property-tax cap.

Legislators are scheduled to return to Albany tomorrow to attempt to finish the revenue portion of the state’s budget. Gas drilling moratorium legislation that was tabled at the eleventh hour a month ago is still pending and ripe for consideration. The bill would prevent the issuance of drilling permits until May 15, 2011 to supposedly allow additional time for study and review of hydraulic fracturing. The DEC has been reviewing and studying this issue for over two years while drilling has been on hold and is set to issue final regulations this fall when permitting is expected to begin.

In the meantime drilling has been ongoing in Pennsylvania where thousands of new, well-paying jobs have been created and millions of dollars in state and local revenues generated. We are facing a $9.2 billion budget deficit in New York and a continued population drain. Drive through the small towns in central New York and the Southern Tier and witness the boarded up stores and farms for sale. The landowners are not looking for a hand out. They have been presented with a rare opportunity to develop a domestic natural resource that will provide clean, cheap energy to New Yorkers and economic stability to their communities.

Another moratorium will force more New Yorkers to seek better opportunities out of state and we will continue to see business and farm foreclosures and economic blight upstate. Legislators must trust the experts at the DEC to formulate comprehensive drilling regulations that allow safe, clean development of the Marcellus Shale to move forward. Waiting is not an option.

Bill Hammond writes in the Daily News about how the fight to be the GOP’s candidate for Governor is hurting the republicans chances to beat Andrew Cuomo.

“The GOP primary for governor is quickly devolving into a race to the bottom.

Rick Lazio and Carl Paladino (above) should be debating who has the smartest ideas and best credentials to fix New York’s broken government.

They should be bashing the many embarrassments perpetrated by Albany’s all-Democratic leadership over the past two years.

They should be probing for chinks in the armor of Attorney General Andrew Cuomo, the Democrat who’s crushing both of them in poll numbers and fund-raising.

Instead, they’re jockeying over who’s more willing to exploit the searing memory of 9/11 - by posturing against a proposed Muslim-oriented community center near Ground Zero.”
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