What you need to know about the health care tax credit!

I like writing, but dislike the concept of blogging. It seems too self-centered—like everyone in the world is interested in my viewpoint. But it seems like the best possible way to distribute information to Tompkins Chamber members and people in this community about the Patient Protection and Affordable Care Act (PPACA—the Health Care Act).

So, first, here’s information about the health care tax credit for small employers. From 2010 through 2013 there is a tax credit for qualified small employers, who purchase health insurance for their employees. You are qualified if you employ no more than 25 full-time equivalent (FTE) employees during the tax year AND pay average FTE annual wages of no more than $50,000 AND have a health insurance plan for which the employer pays at least 50% of the premiums of those enrolled.

For 2010 the credit is 35% for for-profit and 25% for tax-exempt employers of the lesser of the amount the employer spent to purchase health insurance OR an amount to be named later. Seriously! The Secretary of Health and Human Services will benchmark an amount and this will be made public by the IRS at some point later this year.

But I’m not finished yet. The full amount of the tax credit only applies to employers with 10 or fewer FTE employees who average annual FTE wages of less than $25,000. There are also provisions for 2014 and later for employers who purchase their insurance through an insurance exchange (more about these in a future blog).

This is a wonderful tax credit. It could mean a good savings for small businesses and, if employers understand the provisions, it could spur increased employment. But, it also means that you better have a good accountant. I’m still not sure how the credit will work for not-for-profit businesses, like the Chamber, since we don’t generally pay income taxes. I’m told that there will be either a credit on another tax or a refund.

More later. There will clearly be more to blog about. The bill, PPACA, is about 2,000 pages long.

As always, don’t rely on this for tax advice. See a qualified accountant.

Jean's China Travel Journal - March 16, 2010

It’s not good when your wake-up call arrives at 4:15. But we made it to the airport and through the craziness of checking in with time to spare. Arrived at Shanghai’s smaller domestic airport on the first day that the new wing of the terminal was being opened. Wow, another spectacular place and everything worked even on the first day. We stopped for lunch on the way to our hotel and many of my fellow travelers are desperate for some American food. I find it odd that people didn’t anticipate eating Chinese food at every meal for the week. I think the food is quite good and there’s a tremendous variety since we are served family style at tables with giant lazy susans. But Chinese breakfast on the plane was a challenge. Congee is sort of like thin oatmeal, but made from white rice instead of oats. That was served with a sealed plastic pouch of pickled vegetables and a dark brown hardboiled egg. I think it was a duck egg boiled and then soaked in tea. The roll was filled with sweet bean paste. Not what we’re used to, but a new take on the breakfast of champions.

More later.

Jean's China Travel Journal - March 15, 2010

Our breakfast briefing at Reed Smith LLP, a leading legal firm in Shanghai, on China’s Legal Climate and Challenges for Foreign Invested Capital was a learning experience. China’s government’s stimulus package of about $650 billion has worked in ways that America’s hasn’t. A few differences: China put on 2nd and 3rd shifts on construction projects to get more people working; it got banks to really lend to businesses; and it distributed prepaid debit cards to people in areas of high unemployment quickly to infuse cash into the economy. Of course, it’s easier to accomplish these tasks when the government’s state-owned businesses are about 60% of the economy. Yet, who would have imagined that private enterprise controls about 40% of the economy even 10 years ago?

I climbed the great wall of China. Okay I climbed only a very small part at Juyong Guan pass. The mountains on either side of this pass jut towards the sky. With snow on the ground and the steps climbing was very tricky. A few people in our group made it all the way to the top of the pass where some of the “steps” were more than 30 inches high. Coming down was harder than going up and the wind was wicked. It gave me a sense of respect for the Chinese people who built most of this wall in the 14th to 16th centuries during the Ming dynasty as a protection from the Mongols to the north. In fact it gave me respect for the Chinese people who restored it in the 1980s.

We also visited the Ming Tombs and the Hall of Eminent Favor, which has been made into a museum containing some artifacts from the one tomb that was excavated and an impressive statue of Yongle, the 3rd Ming Emporer. But the most impressive part of the building is the construction. The roof is supported by 40 foot-tall cedar columns that are more than 12 feet in circumference at the bottom. The tombs were built in this area because the ridge of mountains protects the area on 3 sides and keeps the evil spirits carried on the north wind away from the area.

We had dinner tonight at a banquet hall with about 200 other Chamber executives from the U.S., Norway, Bermuda, and Great Britain. Some Chinese officials from the Ministry of Culture joined us. We were greeted upon arrival by dragon and lion dancers and entertained by a trio of musicians that played “Oh, Susannah” and “Red River Valley” on erhu (a two-stringed violin). I think I may be experiencing culture shock. Most of the other Chamber execs are here to see and experience China, but are not part of our Ford Foundation Fellowship group. They have more time for sightseeing and shopping, but I’m so glad to be able to participate in the discussions and workshops being presented.

Back to the hotel to pack. We have to be out of the hotel at 5 a.m. tomorrow to catch the 7:30 flight to Shanghai.

Jean's China Travel Journal - March 14, 2010

Arrived in Beijing last evening with a group of fellow Chamber execs. All of us are ACCE (Association of Chamber of Commerce Executives) Ford Foundation RSD Fellows. RSD stands for Regional Sustainable Development and each of us worked on projects dealing with efforts to make our communities better in the 21st Century.

Thanks to ACCE and Ford for sponsoring this trip to China. We'll be spending 3 days in Beijing and 4 in Shanghai and meeting with a people working in China on issues ranging from Environmental Sustainability and Corporate Social Responsibility to Foreign Investment and the Talent Landscape.

Beijing is impressive. The airport (which was totally rebuilt for the 2008 Olympics) is extraordinarily beautiful and everything worked incredibly well from Immigration to Customs. We passed through temperature detectors that are set to find people with high fevers. Luckily we all passed with flying colors.

We're staying at the Beijing Marriott City Wall, which is built next to the only remaining section of the wall of the "common" city--to distinguish it from the Imperial and the Forbidden Cities. It's a lovely hotel with an elegant lobby and beautiful rooms. The bathroom is a delight to someone who just spent 14 hours flying from JFK to PEK.

There are 17 million people living in Beijing. Within the 3rd ring--the Common City (the first is the Forbidden City and the second the Imperial City)--are hotels, the enormous train station, office and government buildings, and the Central Business District. The boulevards are wide and the traffic is fierce. Our guide says there are more than 4 million automobiles registered in the Beijing area.

Most of the office buildings are pretty bland in design--about 30 story glass blocks, but one is very striking for two reasons. The China TV building is called "the blue jeans building" by locals. It's a two offset glass towers with a cantilevered connection that forms the belt and torso, It's a pretty odd building by itself, but is made much odder by the burned out building adjacent to it. It was completely destroyed one year ago during the spring festival by fireworks. Fireworks here are pretty serious and a little out of control. The developers are still trying to figure out how to take down the blackened and twisted hulk since it shares a foundation with the other two towers here.

What Really Counts

March 17 is and always will be St. Patrick’s Day to me. It’s a day to celebrate my Irish heritage, break out my mother’s recipe for corned beef and cabbage, and bake a few loaves of whole wheat soda bread.

But this year it’s also the day that we should be receiving the census form in the mail. So now we have another great reason to celebrate.

The U.S. Census is an amazing thing. It provides us with a snapshot of America and with the tools to apportion legislative seats at the local, state and national level. It gives school boards accurate data to assess whether they should build new classrooms or convert some buildings to new uses. It allows city and regional planners to consider where new water and sewer infrastructure needs to be built or whether roads or other transportation systems need to be updated. Businesses can evaluate what communities might need their goods based on demographics. Marketers can learn more about their potential audiences. And, in 70 years it provides an opportunity for your grandchildren to look back and find where you were living in 2010.

But the census only works if you fill out the form and get it back. I am very concerned that we may once again get an undercount in Tompkins County. In 2000 our official count was 96,501 when estimates put our number at just about 100,000. The 2008 estimate is 101,136 and we want to get to that number and make sure that everyone who resides here is counted here, but the calendar makes this very difficult.

Every address in the county should receive a form. But there is generally only one form provided per living unit. College students living off-campus should fill out the form here in Tompkins County since that’s where they live 9 to 10 months of the year. But they have to fill out one form and include all the people living in the apartment. If the form isn’t returned by the end of April for a specific address then census enumerators visit that address to try to find out who lives there. Unfortunately many college students leave town or move in early May and the census enumerators will only find an empty apartment.

So, what can you do? Please fill out the form and get it back in the mail. If you have questions, go to www.2010.census.gov and find out the information. If you are a landlord please talk to your tenants and remind them to fill out the census form and return it. If you don’t receive a form in the mail by the end of March please go to the Questionnaire Assistance Center (QAC) at Tompkins County Public Library and fill out a census form. There will be other QACs in the County as well.

A few years ago I hunted through 1910 census data to find my paternal grandparents, who had died in the influenza epidemic in 1918. My father never spoke about them much and I didn’t know their middle names or where they’d been living. It was a joy to find their names. So give your descendents a gift and fill out the form.

G.L.A.M—Grow, Learn, Advocate, Market Your Chamber, Your Resource

ADVOCACY

I was thrilled and a little surprised to read a recent editorial in The Tattler, the Ithaca High School student newspaper, supporting the Collegetown Terrace Apartments Project. The editorial writers correctly noted one of the interesting current ironies in local government. The City of Ithaca’s Common Council’s Planning Committee is considering rezoning several areas of the City from R3 to R3aa. R3 zoning allows multiple unit housing and larger numbers of units than in R3aa. This, of course, is at the same time that the City of Ithaca has publicly supported the County’s Comprehensive Plan, which encourages infill development and increased housing opportunities.

The Collegetown Terrace Apartment project would build about 1260 units of housing in the area bounded by State Street, Quarry Street, and Valentine Place. To do this it would demolish about 19 properties, with about 635 units, and replace them with six or seven apartment buildings. As I understand it the project was developed in keeping with the current zoning regulations, but might need a variance to get a building permit.

I was really delighted by this editorial because the writers identified two very important points and because they cared enough about housing to write about this subject. Their points were that “Demand for housing will not diminish if people aren’t allowed to develop in the city; Ithaca’s suburbs will just expand instead, swallowing more open space.” And secondly, “The real issue at work is NIMBY syndrome—Not In My Backyard. ‘Nodal’ growth is great, but not here.” Infill projects help prevent sprawl and it’s certainly ironic that the City is considering whether to limit such projects not only on East State Street but in other areas of the city while generally supporting “smart growth” concepts.

Developers simply ask to know the rules. Once ground-rules are established these entrepreneurs can take it from there and obtain financing while supplying the risk tolerance that makes dreams become realities. Unfortunately when the ground-rules are uncertain developers become very wary of investing their time and start-up money in a community that changes the rules in the middle of the game.

The Chamber’s Governmental Affairs Committee has supported a resolution that supports this development. The resolution is working its way through committees and will be reviewed by the Board of Directors in February. Common Council’s Planning and Economic Development Committee will meet and review the rezoning proposal on the evening of February 17th. We’ll be there to voice the opinion of the Chamber’s Board. We hope you will consider lending your voice as well.

Your Chamber, Your Resource: Grow, Advocate, Market, Learn

What does the Chamber do? When a group of us tried to pare the answer down to a reasonable size, eliminate detail, and find the kernel at the core of our work we came up with four words: advocate, market, grow and learn.

The Chamber advocates for our members with our elected representatives, with local, state and national governments, and with planning boards and sewer commissions. We help businesses and organizations market their services and products to each other and to the world. The Chamber’s website and membership directory reach tens of thousands of potential clients and customers every year. Chamber members utilize the services of the Chamber to help grow their organizations. They meet other entrepreneurs and service providers at networking events and create opportunities to do business with each other. And through workshops, webinars and one-on-one business counseling they learn to do all of these activities better.

One of the most important ways the Chamber can advocate for our community in 2010 is to encourage everyone to participate in the Census. You’ll be hearing more about the Census over the next few months and materials will begin showing up in your mailbox soon. We will be asking you to let your employees know about the Census and the importance of being counted. The funding for many federal programs is tied to population statistics and without an accurate count our county could lose needed dollars.

The Chamber is partnering with the Census to help get this message out and we have received several thousand pedometers with the slogan “The Tompkins County Chamber of Commerce Wants YOU to be Counted U.S. Census 2010.” We’ll be distributing these at events in January and February. It’s a great way to get healthy by counting your steps and to help our county continue to have a healthy population count!

Bread and Circuses

Radio, newspapers and magazines are full of stories of celebrity misadventure, political malfeasance and generally bad behavior. “Hiking the Appalachian Trail” is the new catchphrase for the liaisons of political bedfellows and we’ve just lived through four days of the aftermath to Michael Jackson’s untimely death.

These stories can divert us from news that really matters such as the continuing global economic trauma and unrest throughout the Mideast, much of Africa and parts of Southeast Asia. Sometimes it seems there’s a magician whose fast talk and fast hands are distracting us so that the illusion will startle us. But the illusion needs to be exploded. We need to see the reality underneath.

I’m not blaming the media. Bread and circuses have distracted people since long before the invention of the printing press. Juvenal deplored the petty actions of politicians about 1800 years ago when he wrote about how the people were giving up their birthright of political involvement as Roman citizens for free wheat (bread) and costly entertainments (circuses). But a free society requires an active and informed citizenry.

Congress will be voting soon on healthcare reform and energy policy. If you haven’t called or written your Congressman about these issues, why haven’t you? If you haven’t called your NYS Senator’s office to deplore or applaud their recent actions—depending on your viewpoint—why haven’t you?

I realize that the bread and circuses have been even more appetizing and distracting than usual, but the real issues continue. In the current recession the bread is likely to become less tasty so the time to start noticing what’s happening in Washington and Albany is right now.

A Victory and a Challenge

The last few weeks has seen a great triumph for the business community and Tompkins County. After a stunning blow to our community—the announcement that Continental Airlines would be discontinuing service to and from the Ithaca Tompkins Regional Airport (ITH)—Senator Schumer came to the airport to reveal that Continental would be staying. The business community, led by the Tompkins County Chamber of Commerce, the Air Service Board, and Tompkins County Area Development, rallied quickly and called Senator Schumer to ask for help. Senator Schumer responded to our calls and spent considerable time and effort to bring Continental to the table to listen to the business suggestions and analysis that a group of business leaders proposed. The result is slightly reduction in the number of flights and a challenge to our community to use the service or to risk losing it.

Senator Schumer also brought to us more information about the problems at Newark International. We knew that air traffic congestion was forcing Continental to reduce flights. But Senator Schumer was familiar with problems in the FAA and management at Newark that helped us make our case with officials at Continental.

In the last seven months with three airlines operating from ITH we’ve seen great service. You can now reach more than 200 destinations world-wide with one-stop service. Prices have been amazing. I recently flew round-trip to Roanoke on a Continental-Northwest code-share for $180 round trip and just purchased a round-trip ticket to Raleigh for $210 roundtrip. Our airport works efficiently and well with this level of service.

But, if the people of Tompkins County don’t use our airport, we will lose air service. The airlines need to use their aircraft efficiently and they simply won’t continue half-empty flights. I urge you to register at www.flyithaca.com and use it to book your air travel. Costs are absolutely competitive, service is excellent, and you’ll avoid long-lines and the hassle of driving one, two or more hours to get on a flight. So don’t take this victory for granted. You have great choice now, but it could be our last chance.