Bill > S05644

This bill establishes a tax credit for contractors who award subcontracts to Minority and Women-owned Business Enterprises (MWBEs) or Service-Disabled Veteran-Owned Business Enterprises (SDVOBEs) as part of state contracts, beginning in 2026. The credit is worth 35% of the total payments made to qualified subcontractors within the taxable year, with specific requirements and definitions. A "qualified subcontractor" must be a certified MWBE or SDVOBE that maintains its headquarters in New York state, and a "state contract" includes purchases of goods, services, or construction projects for state agencies. The bill includes provisions to prevent contractors from manipulating subcontractor relationships solely to claim the credit, and allows for tax credit carryover if the full credit cannot be used in a single tax year. The credit can be applied against state tax obligations, and any excess credit can be treated as an overpayment and potentially refunded. This legislation aims to support small, minority-owned, and veteran-owned businesses by providing a financial incentive for prime contractors to work with these enterprises on state-related projects.

Budget and Finance

https://www.nysenate.gov/legislation/bills/2025/S5644