Bill > A07991

This bill establishes a new program for small businesses in New York to create tax-deferred savings accounts with specific financial restrictions and benefits. Small businesses can open these accounts with authorized financial organizations, and can deposit up to $5,000 annually, with deposits and earned interest being tax-deferred. The funds can only be used for qualifying purposes, such as purchasing tangible business property or making expenditures that improve business competitiveness and potentially create or retain full-time jobs. If funds are withdrawn for non-qualifying purposes, they will be included in the business's taxable income for that year.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 and report annually on the program's usage, including the number of participating businesses, total deposits, average account balances, and types of withdrawals. The departments are also tasked with developing regulations for the program within 180 days of the act's effective date, which will be the first of April following its passage into law. This initiative aims to provide small businesses with a tax-advantaged savings mechanism to support their growth and operational investments.

Business and Industry

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