Senator Charles J. Fuschillo, Jr.,(8th Senate District -Merrick) announced recently that the new state budget includes a plan to reduce the State's Gross Receipts Tax (GRT) on energy which will reduce utility costs for every business and residential ratepayer in New York State. The GRT reduction was part of a $1.3 billion package of tax cuts included in the budget. Senator Fuschillo and Governor Pataki targeted GRT as a major tax cutting priority this year.

"By cutting the GRT we will reduce the operating costs of New York businesses by millions of dollars enabling them to remain competitive in a global market, allowing them to grow and create more new jobs," said Fuschillo.

According to Senator Fuschillo, the GRT will be eliminated from manufacturing businesses immediately and will save them $51 million annually. The GRT paid by commercial customers will be completely phased out over four years, saving commercial rate payers $235 million annually when fully implemented.

"High energy costs have been targeted as a significant impediment to business and job growth in New York State," said Fuschillo. "By eliminating this portion of the GRT, we will put businesses in New York on a much more equal footing with their competitors."

In addition, the budget will gradually reduce the GRT rate paid by residential rate payers by 40 percent, from 3.25 percent to 2 percent over five years. When fully implemented, the reduction will save residential rate payers $172 annually.

The budget will also provide an additional 300 megawatts of low cost energy to businesses under the Power Of Jobs program. This will provide nearly $250 million in offsetting tax credits over the four year contract period to help reduce energy costs, make distressed businesses more competitive and encourage job growth.