Entrepreneurs starting employer firms in New York could earn tax savings

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The New York state department is concerned over the lingering statewide unemployment rates. A new initiative to boost job creation could mean entrepreneurs considering business formation will save before they start through tax credits for every new job created. New York State Senate Republican Dean G. Skeloa recently announced a three-year tax credit for existing and startup employer firms, averaging between $2,500 and $5,000 for every job generated. The initiative also puts a morarotium on new taxes, fees, and regulations that are killing job-creation efforts in the state.

Under the new legislation, small business owners will receive credit equal to the amount of tax withholding for each job added to the payroll. The state department says this translates into credits of about $1,150 for a new job paying $30,000.

Moreover, entrepreneurs who hire from the ranks of the unemployed will see this tax credit grow by an additional $3,000 per newly employed New York citizen.

The initiative is also part of an effort to help keep businesses operating in New York and promote in-state incorporation. “Businesses continue to leave New York State because the government spends too much and taxes too much,” said Senator John DeFrancisco, the ranking Republican on the Senate Finance Committee.

Entrepreneurs who want to learn how to incorporate in New York to take advantage of these tax credits can visit the state department’s website or seek a professional incorporation service.