Bill > S00386

This bill establishes the Savings Accounts for a Variable Economy (SAVE) program for small businesses, creating a new tax-advantaged savings account designed to help small businesses manage financial challenges. Under this program, eligible small businesses (defined as those with 25 or fewer full-time employees and annual net income under $250,000) can contribute up to 10% of their previous year's gross profits into a special savings account. Contributions to these accounts are tax-deductible, and distributions during specified periods of economic hardship can be tax-free if used for specific purposes like worker hiring or financial stabilization to retain or create jobs. The bill defines a "qualified distribution" as an amount withdrawn during an economic downturn (such as when the gross domestic product decreases) and reinvested in the business's workforce or financial stability. To prevent misuse, the bill includes provisions that require certification of distribution purposes and mandate that funds not used as intended will be subject to taxation in subsequent years. Additionally, the New York State tax commissioner is required to prepare an annual report evaluating the program's effectiveness in supporting small business financial stability and job retention. The program is set to take effect for taxable years beginning after the bill's enactment date.

Government Affairs

https://www.nysenate.gov/legislation/bills/2025/S386