2022 NYS Budget Highlights
On Saturday, April 2nd New York State (NYS) approved a $220 billion budget, which is $4 billion more than the Executive’s initial proposal, and $8 billion more than FY 2021.
The State budget was nearly a week late as lawmakers negotiated controversial legislation like bail reform and funding for the Buffalo Bills stadium.
The Chamber was pleased that NYS saw the importance of extending the Brownfield Cleanup Program, repealing broadband’s fiber-optic fees to expand access to high-speed internet in rural areas, and in providing tax credits to help businesses recover from the pandemic. However, we were very disappointed to see that after nearly a year of fighting, there is no funding allocated to assist employers with unemployment insurance tax relief. We are now forced to rely on the federal government to once again bail us out of a mess business owners did not create.
- Alcohol to Go
- Restaurants may now sell alcohol to-go; however, they cannot sell full bottles and the wine or liquor must be purchased with a “substantial food item” (definition yet to be determined).
- Liquor stores may now open on Christmas.
- The State’s Fiber-optic Right-of-Way Tax has been repealed which will reduce the cost on broadband providers and incentivize them to invest in projects that expand highspeed internet in rural areas.
- Brownfield Cleanup Program (BCP)
- The BCP is extended for 10 more years, however the State has issued a $50,000 non-refundable application fee. The Chamber and Upstate United advocated against this fee believing that it would push developers away from initiating projects in Upstate NY. Developers can apply for a waiver if they can demonstrate a financial hardship”.
- $7 billion will be spent over the next 4 years to expand childcare access across NYS. “The budget increases the income eligibility threshold for child care subsidies to 300 percent of the federal poverty level ($83,250 for a family of four)”.
- NYC providers who expand childcare will receive a tax credit. Upstate providers were not included in this credit.
- Medicaid coverage is now expanded for low-income undocumented immigrants ages 65+ and for new mothers.
- Tax Cuts
- Accelerated Middle-Class Tax Cuts
- The 2019 middle-class tax cuts were initially set to phase in by 2025, however, they’re now accelerated by two years.
- Temporary Gas Tax Holiday
- From June 1, 2022 – December 31, 2022, the State has issued a temporary gas holiday, meaning New Yorkers will pay 16 cents less per gallon at the pump. The 17.3 percent petroleum business tax will remain.
- Accelerated Middle-Class Tax Cuts
- The Farm Workforce Retention Credit was increased from $600 per employee to $1,200 per employee through 2025.The budget also included a Farm Employer Overtime Tax Credit which aims to offset the cost farmers will spend on overtime when the threshold changes from 60 hours to 40 hours. While the credit will be paid in “two semi-annual installments”, farmers can apply to receive the first installment in advance by the end of July.
- Emergency Rental Assistance Program (ERAP) and Landlord Rental Assistance Program (LRAP)
- $800 million will be directed toward ERAP and $125 million for the LRAP.
- Bail Reform
- Includes a series of measures that will make changes to discovery disclosure, expands bail eligibility for gun offenses, closes gaps in Raise the Age, extends Kendra’s Law, allows Judges to require mental health evaluations prior to pretrial release, etc.
- Film Tax Credit
- Extended for 3 years but applicants are now required to submit a diversity plan with their application.
- Buffalo Bills Stadium
- $600 million will be directed to the new Buffalo Bills stadium in Orchard Park.