Bill > S00236

This bill amends the New York State tax law to authorize the creation of small business tax-deferred savings accounts. These accounts can be used by small businesses, as defined in the state's economic development law, to improve their facilities or procure machinery and equipment. Deposits into these accounts and any interest earned on them are exempt from state income tax. Withdrawals from the accounts for eligible expenses are also exempt, but an additional 10% tax is imposed on withdrawals not used for the intended purposes.