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                  STATE BUDGET INCLUDES $4.1 BILLION IN TAX CUTS

Hardworking New Yorkers Will Receive Direct Rebate Checks, Child Education
        redits, Marriage Penalty Ends, Sales Tax on Clothing and Shoes Eliminated
      The 2006-07 New York State Budget includes over $4.1 billion in tax cuts that will return money to New York's hard working families and help make New York more economically competitive.  The tax cuts include direct school property tax rebate checks to homeowners, new tax credits to parents of school age children and the elimination of onerous taxes like the state sales tax on clothing and shoes and the marriage income tax penalty.

         New Yorkers pay far too much in taxes.  With a State budget surplus this year, the goal was to return as much of that money as possible to the taxpayers beginning this year and eliminate even more taxes going forward,      The new State budget is an enormous victory for the hardworking, overburdened taxpayers of this state. New Yorkers will be able to keep more of the money they work so hard to earn and will see tangible results, not just at tax time, but throughout the year.

      The highlight of the budget is the $1 billion annual STAR Rebate Program that will send checks directly to homeowners.  The plan is based on the Senate Majority Rebate-NY initiative proposed earlier this year.  In New York City, property taxpayers will receive a rebate check and personal income taxpayers, including renters, will receive a School Tax Reduction Personal Income Tax Credit.

      Taxpayers will save additional money with the newly created Empire State Child Credit that will provide a $330 per child tax break to parents of school age children (ages four to sixteen).  The $600 million plan is New Yorkers will save money when they buy clothing and shoes priced under $110 per item as a result of the elimination of the state sales tax
on these items.  Localities are encouraged to eliminate their share of these taxes, thereby helping further reduce taxes for shoppers and increasing New York's retail clothing industry's competitiveness with neighboring states.

      Married taxpayers will save $41 million as a result of an agreement to eliminate the personal income tax marriage penalty.  The new guidelines would increase the standard deduction for married taxpayers to $15,000 for joint filers and to $7,500 for married taxpayers filing separately, bringing them in line with single taxpayers.

      Dozens of other tax credits, breaks and exemptions will help return money to taxpayers, keep New York economically competitive and create jobs, including:

      National Guard Exemption ($1 million)- expands the current exemption
      for military pay earned by members of the New York National Guard who are
      on active duty in the State to combat terrorism in the State to those
      members on active duty at the request of the Federal government;

      Credit  for  Volunteer  Firefighters  and  Emergency  Personnel  ($26
      million)-  In order to encourage more of New York's residents to join their
      local  volunteer  fire  departments, the legislative budget  will allow the
      volunteer  firefighter  a  $200  personal  income  tax credit for volunteer
      firefighter  and  emergency  personnel not receiving the local property tax
      exemption;

      Biofuels Tax Credit ($10 million)- provide manufacturers of qualified
      bio-fuel  products, primarily ethanol and bio-diesel, with a refundable tax
      credit.   The credit would be 15 cents a gallon, capped at $2.5 million per
      plant,  per  year, for up to four years.  This credit will benefit New York
      State's  farmers  and  consumers  and would help keep energy dollars in the
      State and would ease fuel prices for New York State consumers;

      Film  Credit  Increase  to   $60  Million  Annual  State  Cap  -  The
      legislative  budget  increases the annual cap on the credit that is allowed
      for  the production of film and television shows. The cap will be increased
      from  $25 million at the State level and $12.5 million at the City level to
      $60  million  and  $30  million,  respectively.  The expiration date of the
      program is extended to January 1, 2012;

      Commercials  Tax  Credit - The legislative budget enacts a $7 million
tax  credit  pool  allocated  to  qualified production companies filming or
recording  radio  commercials  in  New  York.   The value of the program is
divided  between  commercial  activity  growth, downstate and upstate.  The
credit sunsets January 1, 2012;

      Empire Zone Changes - The legislative budget amends the Empire Zone
Program by allowing companies who make new significant capital investments
of at least $750 million to qualify as â" new business" for purposes of
zone benefits at the location of the significant investment even if they
currently have a New York State presence. To qualify, the business will be
required to meet a targeted job growth amount;

      Eliminate  S-Corp  Differential  ($40 million)- eliminates burdensome
tax  computation  for  small  businesses, enabling them to only pay a fixed
dollar  minimum, thus enabling small businesses to reinvest and grow in New
York;
      Land  Conservation Tax Credit ($1 million)- In order to preserve open
space  within  the  State, the legislative budget will allow landowners who
donate  land to a conservation agency through a conservation easement a tax
credit for the property taxes paid on the easement;

      Brownsfields  Extender ($15 million)-- The legislative budget extends
the  enhancements  to the brownfield cleanup program's environmental zones,
designed  to  encourage  redeveloping underutilized and contaminated sites,
that are scheduled to expire on August 31, 2006, for four years;

      Reinstate  REIT  Real  Estate Transfer Tax Reduction- extends the tax
reduction  on  the New York State real estate transfer tax and the New York
City  real  property  transfer  tax  for  conveyances  of  real property to
existing  real  estate investment trusts (REITS) until August 31, 2008.  In
addition,  the  bill  makes  the tax reductions retroactive to the previous
sunset date of September 1, 2005;

      Admission  Charges  to  Amusement  Parks- makes permanent the partial
state  and  local  sales tax exemption for admissions charges to qualifying
amusement parks which would expire April 1, 2006;
      Low  Income  Housing  Credit  ($40  million)- increases the aggregate
amount of state low-income housing tax credits available from $8 million to
$12 million in SFY 2006-07;

      Marginal  Tax  Rate for Annuity Premiums ($3 million)- amends the tax
limitation  provision  that  applies  to  life  insurance  companies  whose
premiums  consist of at least 95 percent annuity premiums by providing that
the  limitation  amount  is computed by using the amount of premiums of the
insurance company which are in excess of 95 percent of total premiums;

      Sales Tax Vendor Credit ($54 million)- increases the sales tax vendor
credit  for  retail  establishments, including many small vendors, from 3.5
percent  of  a State only base to 5 percent of a State and local base.  The
quarterly cap also increases from $150 to $200 over two years.
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Revised: September 03, 2006 .