Bill > S09705

This bill establishes a tax credit for contractors who award a subcontract to minority-owned business enterprises (MWBEs) or service-disabled veteran-owned business enterprises (SDVOBEs) in furtherance of a state contract. The credit is 35% of the total amount of payments made by the eligible contractor to the qualifying subcontractor. The bill defines a "qualified subcontractor" as an MWBE or SDVOBE certified under state law and headquartered in New York, and an "eligible taxpayer" as a contractor who awards a subcontract to such a qualifying subcontractor. The bill prohibits contractors from discharging an existing subcontractor solely to claim the credit. The credit can be carried over for up to three years if it exceeds the contractor's tax liability in the year it is claimed.