Bill > A02460

This bill establishes the "Savings Accounts for a Variable Economy (SAVE) for Small Businesses Act", which creates a new tax-advantaged savings program for small businesses. Under this program, eligible small businesses (defined as those with 25 or fewer full-time employees and annual net income under $250,000) can open small business savings accounts that offer tax deductions for contributions up to 10% of the business's gross profits from the previous year. The accounts provide tax-preferred treatment for qualified distributions during specified periods of economic hardship, such as when the gross domestic product declines or during federally declared disaster areas. Qualified distributions must be used for specific purposes like worker hiring or financial stabilization to support job retention or creation, and these distributions would not be included in the business's gross income. If funds are not used for qualifying purposes, they will be treated as taxable income and added back to the business's tax liability in the subsequent year. The bill also requires the tax commissioner to prepare an annual report evaluating the effectiveness of these savings accounts in supporting small business financial stability. The provisions will take effect for taxable years beginning after the bill's enactment.

Budget and Finance

https://www.nysenate.gov/legislation/bills/2025/A2460