State Senate has own Upstate plan

The state Senate revived an elaborate, Republican-drafted economic development bill for Upstate New York, one that competes with Gov. Eliot Spitzer's own upstate initiative.

The 10-point proposal, which Republicans dubbed "Upstate Now," passed the Senate 54-3 on Wednesday. The $3.7 billion initiative remains unchanged from when it was first introduced and passed in May 2007, by a unanimous vote. This year, three Democratic senators from New York City switched their votes.

The bill died in the Assembly last year, and it could meet the same fate again. Democrats, who control the Assembly, must square the Senate plan with a proposed $1 billion upstate development fund Spitzer outlined in his proposed budget earlier this week.

Many business interests, including the Business Council of New York State Inc., have praised the bill for its focus on tax relief and investments targeting manufacturers and small businesses. Highlights of the bill include eliminating the corporate franchise tax, property tax rebates for small businesses and tax credits for health insurance and renewable energy usage.

The plan also allots $155 million in new capital investment funds and another $58 million for economic development initiatives.