Bill > A07991

This bill authorizes the creation of small business tax-deferred savings accounts, allowing eligible small businesses, as defined by existing law and meeting specific tax requirements, to establish these accounts with financial organizations licensed or chartered in New York or by the federal government. Deposits into these accounts, up to $5,000 annually, and any interest earned are tax-deferred, meaning they are not counted as income for tax purposes, provided the funds are withdrawn and used for "qualifying purposes." Qualifying purposes include expenditures for tangible property, such as buildings and structural components, primarily used in the business, or other expenses deemed by the Department of Economic Development to improve competitiveness and productivity, leading to the creation or retention of full-time jobs. If funds are withdrawn for non-qualifying purposes, they will be taxed in the year of withdrawal. The bill also mandates annual reporting on the program's usage and impact, and directs the Department of Taxation and Finance to create necessary rules and regulations for its implementation.

Business and Industry

https://www.nysenate.gov/legislation/bills/2025/A7991