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Bill > S03614


NY S03614

NY S03614
Exempts minority depository institutions from the corporate franchise tax for a period of ten years from the date of commencement of business.


summary

Introduced
01/29/2025
In Committee
01/29/2025
Crossed Over
Passed
Dead

Introduced Session

2025-2026 General Assembly

Bill Summary

AN ACT to amend the tax law, in relation to exempting minority depository institutions from the corporate franchise tax for a period of ten years

AI Summary

This bill provides a corporate franchise tax exemption for minority depository institutions (MDIs) for a period of ten years from the date they begin business operations. A minority depository institution is a financial institution defined under the Federal Financial Institution Reform, Recovery, and Enforcement Act of 1989, which typically refers to banks where at least 51% of the stock is owned by minority group members or that primarily serves minority communities. The tax exemption would apply to tax years starting on or after January 1, 2026, and aims to support and encourage the growth of financial institutions that serve underrepresented communities by providing them with a significant financial incentive through reduced tax burden during their initial decade of operations. By amending the tax law to include this new provision, the bill seeks to create a more supportive environment for minority-owned or minority-focused banks to establish and expand their businesses in New York state.

Committee Categories

Budget and Finance

Sponsors (1)

Last Action

REFERRED TO BUDGET AND REVENUE (on 01/29/2025)

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