Bill > S04427

This bill creates a tax credit for small to medium-sized businesses (specifically those with 100 or fewer employees) that purchase data breach insurance. The credit is equal to 25% of the premium paid for qualified data breach insurance, which covers expenses or losses related to data theft, loss, disclosure, inaccessibility, or manipulation. To be eligible for the credit, businesses must adopt and comply with either the National Institute of Standards and Technology's (NIST) cybersecurity framework version 1.0 or a similar standard specified by the state comptroller. The bill includes specific requirements for how insurance premiums are calculated and documented, such as ensuring the insurance charges are separately stated and not unreasonably large. The tax credit applies to both corporate and personal income taxes and will be in effect for five years from the date it becomes law, after which the provisions will automatically expire. This legislation aims to incentivize businesses to invest in data breach insurance and improve their cybersecurity practices by offering a financial benefit.

Budget and Finance

https://www.nysenate.gov/legislation/bills/2025/S4427