Alesi Promotes Partnership with Silver

Senator Jim Alesi is working with Speaker Sheldon Silver to pass legislation in New York that authorizes a CAPCO program:

Republican Sen. Jim Alesi, who has broken ranks with his party to support gay marriage, and done so vocally, is now promoting his work with Speaker Sheldon Silver, a Democrat and someone Republicans in upstate New York have made a habit of characterizing as a villain.

“Senator Alesi teams with Speaker Silver to assist New York businesses,” read the headline on Alesi’s news release: “Senator Jim Alesi (R,C,I – Perinton) and Assembly Speaker Shelly Silver joined forces to pass legislation that will assist businesses in New York State receive capital that is not available from traditional commercial banks through all stages of development – prestart-up, start-up, expansion, or survival.”

The bill, which has passed both houses, relates to raising $150 million in private venture capital from insurance companies. It is co-sponsored by Assemblyman Joseph Morelle, who is chairman of the state Insurance Committee.

The full (lengthy) release, which trumpets Alesi’s “banner week” in Albany:

Senator Jim Alesi (R,C,I – Perinton) and Assembly Speaker Shelly Silver joined forces to pass legislation that will assist businesses in New York State receive capital that is not available from traditional commercial banks through all stages of development – prestart-up, start-up, expansion, or survival.

“As I have said repeatedly, my top priorities this Session have been revitalizing New York’s economy and putting people back to work,” said Senator Alesi, “and this legislation will do both. What our small businesses and entrepreneurs need is assurances that we hear their concerns and that are here to help, that New York State is, in fact, ‘Open for Business.’ The millions of dollars in private venture capital that will be raised because of this vital legislation, will revitalize our struggling economy and create new jobs, and no one could argue that New York doesn’t need new jobs right now.”

To boost the state economy, this legislation (S.5587-C) authorizes New York to license certified capital companies to raise $150 million in private venture capital from insurance companies, which would then be invested in qualified businesses, emphasizing viable, smaller businesses which traditionally have had difficulty in attracting institutional venture capital. In exchange, the certified capital company will receive premium tax credits, whose issuance is delayed four years. Created over a decade ago, this would be the sixth time the CAPCO program is amended and certified.

The CAPCO program has a proven history of success and growth. New York’s Certified Capital Law was signed into law on August 7, 1997 to spur the growth of businesses and employment in New York State. Program One created $100 million of tax credit incentives for insurance companies that invest in CAPCOs. The law was amended in 1999, 2000, 2004 and 2005, adding four additional programs. Programs Two, Three, Four, and Five created $30 million, $150 million, $60 million and $60 million, respectively, in tax credit incentives.

Companies funded under the CAPCO program fall primarily in the following business sectors: business services (including computer, internet services, health and scientific services), financial services, and manufacturing. Through 2009, these sectors have benefited from the creation or retention of 34,878 jobs and the program’s portfolio companies have supported a total of 90,428 jobs in New York, resulting in the economic growth of over $9 billion for the state.

Specifically to this legislation, Program Six would authorizes the state to license CAPCOs to raise $150 million in private venture capital from insurance companies, which would then be invested in qualified businesses in exchange for premium tax credits, whose issuance is delayed four years.

In order to qualify for the tax credits, each certified capital company must satisfy a number of requirements in its investment portfolio. These include:

· Two-thirds of its investment of certified capital must go towards qualified businesses located in underserved areas;
· Ten percent of its investment must be directed towards qualified seed funds, certified as such by the Superintendent of Financial Services;
· Fifty percent of its investments must go towards businesses focused on emerging technology products and services;
· No more than $15 million can be invested towards one individual company;
· A certified capital company under CAPCO-6 would be required to return 15 percent of its net profits on qualified investments to the Department of Financial Services; and
· This legislation also adds to the reporting requirements already present in previous CAPCO programs to ensure compliance with the requirements set forth above.

Most importantly, New York State has not renewed its successful CAPCO program since 2005. In order to ensure that small businesses in Upstate New York have access to capital to start-up and expand the CAPCO program had to be reauthorized in 2011.

Passage of CAPCO continues Senator Alesi’s banner week of enacting legislation to revitalize New York State’s struggling economy. Yesterday, the Senate passed legislation (S.5782) introduced by Senator Jim Alesi to provide greater resources to assist emerging businesses and to foster job growth. Like CAPCO, S.5782 would make available millions of dollars to small businesses in New York State to encourage innovation and job creation.

To support emerging business ideas and products that result in job growth and retention in New York State, this legislation would revive New York’s Capital Access Program by strengthening the statute governing its function and by providing for new funding. This would greatly assist small businesses by enhancing the climate for lending in traditional and alternative financial institutions. In addition to funding the Capital Access Program, funds will be used to finance the Corporation’s bonding guarantee assistance program. This program will aid small businesses, including minority-owned and women-owned firms, in obtaining the necessary bonding authority to secure State contracts.

This bill would also establish the Innovate NY Fund that would leverage federal funding by providing monies to entities, including regional and local economic development organizations, technology development organizations, research universities and investment funds, which would use the funding to make seed-stage investments in New York State small businesses.

Senator Alesi is a former small business owner, and as Chairman of Economic Development, brought real experience and common sense to several of this year’s top economic initiatives – most importantly as the Chairman of the Joint Budget Conference Committee on Economic Development, spearheading a state budget that reduces government spending, cuts the deficit, removes crippling regulations on New York’s small businesses, and sets New York on the path to economic recovery. For these efforts, among others, Senator Alesi was re-appointed to the New York State Small Business Advisory Board.

In January, the Senate passed Senator Alesi’s 2011 Job Creation and Retention Package, a comprehensive proposal to improve our state’s economic climate by providing businesses with a three-year tax credit, up to $5,000 for every new job created, eliminating taxes for small businesses and manufacturers with 50 or fewer employees, or less than $2 million in net income, that pay the state corporate franchise tax, and rolling back the income tax surcharge imposed on small businesses during the last legislative cycle. The legislation also places a moratorium on new taxes, fees and regulations.

“The simplicity of my plan is also its strength,” said Senator Alesi of the Job Creation and Retention Package. “Give businesses incentives and the ability to stay and grow here in New York and then leave them alone as they try and do so. Instead of repeatedly taxing and regulating them, let us reward businesses and manufacturers when they create new jobs and give them incentives to create more!”

Also in January, Senator Alesi voted in favor of Governor Cuomo’s property tax cap legislation for all New Yorkers. The proposal would place a cap on the growth of school property taxes at two percent (2%) or the Consumer Price Index (CPI), whichever is less. If passed by the Assembly, New York State will become the 44th state to cap local property taxes.

“The high cost of living, from food to gasoline to property taxes, is taking its toll on hardworking, overburdened taxpayers,” said Senator Alesi. “The time for action is now. All New Yorkers, from young families to retired seniors, business owners to laborers, must have faith that we hear their concerns about cutting taxes and reducing government spending” Coupled with a property tax cap is mandate relief, and Senator Alesi remains an ardent supporter of not imposing any additional unfunded mandates on taxpayers in Monroe County and across New York State.

“Together, these provisions will help ensure that New York State remains ‘Open for Business,’ by creating a climate within which innovation, creativity and growth can flourish,” concluded Senator Alesi.

View the original article on Democrat and Chronicle.

To boost the state economy, this legislation (S.5587-C) authorizes New York to license certified capital companies to raise $150 million in private venture capital from insurance companies, which would then be invested in qualified businesses, emphasizing viable, smaller businesses which traditionally have had difficulty in attracting institutional venture capital. In exchange, the certified capital company will receive premium tax credits, whose issuance is delayed four years. Created over a decade ago, this would be the sixth time the CAPCO program is amended and certified.

The CAPCO program has a proven history of success and growth. New York’s Certified Capital Law was signed into law on August 7, 1997 to spur the growth of businesses and employment in New York State. Program One created $100 million of tax credit incentives for insurance companies that invest in CAPCOs. The law was amended in 1999, 2000, 2004 and 2005, adding four additional programs. Programs Two, Three, Four, and Five created $30 million, $150 million, $60 million and $60 million, respectively, in tax credit incentives.

Companies funded under the CAPCO program fall primarily in the following business sectors: business services (including computer, internet services, health and scientific services), financial services, and manufacturing. Through 2009, these sectors have benefited from the creation or retention of 34,878 jobs and the program’s portfolio companies have supported a total of 90,428 jobs in New York, resulting in the economic growth of over $9 billion for the state.

Specifically to this legislation, Program Six would authorizes the state to license CAPCOs to raise $150 million in private venture capital from insurance companies, which would then be invested in qualified businesses in exchange for premium tax credits, whose issuance is delayed four years.

In order to qualify for the tax credits, each certified capital company must satisfy a number of requirements in its investment portfolio. These include:

· Two-thirds of its investment of certified capital must go towards qualified businesses located in underserved areas;
· Ten percent of its investment must be directed towards qualified seed funds, certified as such by the Superintendent of Financial Services;
· Fifty percent of its investments must go towards businesses focused on emerging technology products and services;
· No more than $15 million can be invested towards one individual company;
· A certified capital company under CAPCO-6 would be required to return 15 percent of its net profits on qualified investments to the Department of Financial Services; and
· This legislation also adds to the reporting requirements already present in previous CAPCO programs to ensure compliance with the requirements set forth above.

Most importantly, New York State has not renewed its successful CAPCO program since 2005. In order to ensure that small businesses in Upstate New York have access to capital to start-up and expand the CAPCO program had to be reauthorized in 2011.

Passage of CAPCO continues Senator Alesi’s banner week of enacting legislation to revitalize New York State’s struggling economy. Yesterday, the Senate passed legislation (S.5782) introduced by Senator Jim Alesi to provide greater resources to assist emerging businesses and to foster job growth. Like CAPCO, S.5782 would make available millions of dollars to small businesses in New York State to encourage innovation and job creation.

To support emerging business ideas and products that result in job growth and retention in New York State, this legislation would revive New York’s Capital Access Program by strengthening the statute governing its function and by providing for new funding. This would greatly assist small businesses by enhancing the climate for lending in traditional and alternative financial institutions. In addition to funding the Capital Access Program, funds will be used to finance the Corporation’s bonding guarantee assistance program. This program will aid small businesses, including minority-owned and women-owned firms, in obtaining the necessary bonding authority to secure State contracts.

This bill would also establish the Innovate NY Fund that would leverage federal funding by providing monies to entities, including regional and local economic development organizations, technology development organizations, research universities and investment funds, which would use the funding to make seed-stage investments in New York State small businesses.

Senator Alesi is a former small business owner, and as Chairman of Economic Development, brought real experience and common sense to several of this year’s top economic initiatives – most importantly as the Chairman of the Joint Budget Conference Committee on Economic Development, spearheading a state budget that reduces government spending, cuts the deficit, removes crippling regulations on New York’s small businesses, and sets New York on the path to economic recovery. For these efforts, among others, Senator Alesi was re-appointed to the New York State Small Business Advisory Board.

In January, the Senate passed Senator Alesi’s 2011 Job Creation and Retention Package, a comprehensive proposal to improve our state’s economic climate by providing businesses with a three-year tax credit, up to $5,000 for every new job created, eliminating taxes for small businesses and manufacturers with 50 or fewer employees, or less than $2 million in net income, that pay the state corporate franchise tax, and rolling back the income tax surcharge imposed on small businesses during the last legislative cycle. The legislation also places a moratorium on new taxes, fees and regulations.

“The simplicity of my plan is also its strength,” said Senator Alesi of the Job Creation and Retention Package. “Give businesses incentives and the ability to stay and grow here in New York and then leave them alone as they try and do so. Instead of repeatedly taxing and regulating them, let us reward businesses and manufacturers when they create new jobs and give them incentives to create more!”

Also in January, Senator Alesi voted in favor of Governor Cuomo’s property tax cap legislation for all New Yorkers. The proposal would place a cap on the growth of school property taxes at two percent (2%) or the Consumer Price Index (CPI), whichever is less. If passed by the Assembly, New York State will become the 44th state to cap local property taxes.

“The high cost of living, from food to gasoline to property taxes, is taking its toll on hardworking, overburdened taxpayers,” said Senator Alesi. “The time for action is now. All New Yorkers, from young families to retired seniors, business owners to laborers, must have faith that we hear their concerns about cutting taxes and reducing government spending” Coupled with a property tax cap is mandate relief, and Senator Alesi remains an ardent supporter of not imposing any additional unfunded mandates on taxpayers in Monroe County and across New York State.

“Together, these provisions will help ensure that New York State remains ‘Open for Business,’ by creating a climate within which innovation, creativity and growth can flourish,” concluded Senator Alesi.