Schumer Announces New Plan To Lure Businesses To Long Island
SCHUMER ANNOUNCES NEW PLAN TO LURE BUSINESSES TO LONG ISLAND
IDA Bonds, Essential to Lure Businesses are Capped Too Low, Senator Calls for Limit to be Quadrupled - From $10 Million to $40 Million
Schumer, a Member of the Finance Committee, also asks to Expand Eligibility to Include Hi tech and Bio tech Companies, Essential for Growth on Long Island
Schumer: Long Island is In Economic Double Jeopardy; Higher Real Estate Costs and Fewer Effective Loans
In an effort to lure more businesses to Long Island, today U.S. Senator Charles E Schumer, a member of the Finance Committee which has jurisdiction over taxes, called for a quadrupling of the cap of tax exempt bonds offered by Nassau and Suffolk Counties economic development agencies. The Industrial Development Agencies (IDA's) are able to give tax exempt bonds to attract business under certain conditions. These bonds can amount to dramatic savings in the cost of expansion, relocation, retention or redevelopment projects. By law the bonds can only be used for capital expenditure up to $10 million. Because the cost of property on Long Island is so high - with some industrial space selling for between $75 and $100 a square foot, and high end office space that can be close to $200 a square foot, $10 million doesn't go as far on Long Island as it does in other parts of the country.
"Long Island is in double jeopardy when it comes to economic development: first, real estate costs are higher and second - government can't offer as much compared to other areas," Schumer said.
Because the cost of property on Long Island is high, Schumer, a member of the Senate Finance Committee, which has jurisdiction over the tax code today announced his plans to offer a bill to change this provision in the tax code by raising the cap to $40 million in capital expenditure.
"This is a subtle but significant way we can put Long Island business on a more competitive footing with business in places with cheaper real estate," Schumer said.
Schumer also plans to offer legislation to expand the pool of recipients that can receive these grants. Since 1986 the IRS has stringently defined manufacturing businesses, this bill would change the definition of manufacturing companies as defined buy the IRS to include technology firms in an effort to bring them to Long Island.
http://schumer.senate.gov/SchumerWebsite/pressroom/press_releases/2005/PR41716.IDA.061505.html