Bill > A07588

This bill enacts the "New York small business growth and support act" to provide tax exemptions for newly established small businesses during their first three years of operations. Specifically, the bill defines a "small business" as an entity with 50 or fewer full-time equivalent employees and annual gross receipts not exceeding $5 million. For the first three years of operation, qualifying small businesses would be exempt from state income tax, franchise tax on business corporations, and the metropolitan commuter transportation mobility tax (MCTD tax). To be eligible, businesses must register with the department within six months of starting operations, file annual compliance statements, and adhere to all federal and state labor, health, and safety laws. The tax exemptions do not apply to businesses primarily selling tobacco, alcohol, or firearms, or to professional service corporations. If a business ceases operations or relocates outside New York within five years of claiming these exemptions, the tax benefits will be added back to their tax liability. The bill aims to support entrepreneurs, stimulate job creation, and encourage economic development by reducing the tax burden on new small businesses during their critical early years of operation.

Budget and Finance

https://www.nysenate.gov/legislation/bills/2025/A7588