Bill > A06340

This bill establishes a new tax credit for businesses that contract with minority or women-owned business enterprises (MWBEs), providing an incentive for companies to support these businesses. The credit allows taxpayers to claim one-third of their expenditures paid to MWBEs under certain contracts, with a maximum credit of $15,000 per tax year. To be eligible, the contract must not already be mandated by existing diversity contracting laws, and the taxpayer cannot be an MWBE themselves. The credit applies to both business franchise and personal income taxes, and can be carried forward to future tax years if the full amount cannot be used in a single year. Importantly, there is a statewide aggregate limit of $5 million in total credits per calendar year, which will be allocated by the state tax commissioner. The definitions of MWBEs are drawn from existing New York executive law, specifically referencing minority-owned and women-owned business enterprises as defined in section 310 of the executive law. The tax credit is designed to encourage voluntary support of minority and women-owned businesses by offering a financial incentive to companies that choose to contract with these enterprises.

Budget and Finance

https://www.nysenate.gov/legislation/bills/2025/A6340