Bill > S06539

This bill establishes a new program for small business tax-deferred savings accounts in New York, allowing qualifying small businesses to create special savings accounts with financial organizations where they can deposit up to $5,000 annually on a tax-deferred basis. The accounts are designed to help small businesses save money for qualifying business purposes, such as purchasing tangible property, buildings, or making expenditures that improve business competitiveness and productivity. Deposits and their earned interest will be tax-deferred, meaning they won't be taxed when deposited, but if the money is withdrawn for non-qualifying purposes, it will be included in the business's taxable income for that year. The bill requires the departments of taxation and finance and economic development to track the program's usage, including the number of participating businesses, total deposits, average account balances, and types of withdrawals. Financial organizations eligible to host these accounts must be licensed or chartered in New York, federally chartered, or regulated by the Securities and Exchange Commission. The program will be reviewed annually, with reports published and distributed to state leadership, and the implementing regulations must be developed within 180 days of the act becoming law.

Business and Industry

https://www.nysenate.gov/legislation/bills/2025/S6539