Bill > S08171

This bill establishes the Contract New York program to support emerging microbusinesses by providing tax credits to corporations that contract with these small businesses. An emerging microbusiness is defined as a business with fewer than five employees that is independently owned, operated by U.S. citizens or permanent residents, and at least 51% owned by socially and economically disadvantaged individuals. The bill requires the Department of Economic Development and Empire State Development Corporation to create and maintain a public registry of these emerging microbusinesses, which will include information like their operational region and industry classification. Corporations that enter into eligible contracts (valued between $25,000 and $100,000) with these microbusinesses can claim a tax credit equal to their payroll tax withholdings. The tax credit can be applied across different types of state taxes, including corporate franchise tax and income tax, and can be carried forward if the full credit cannot be used in a single tax year. The program aims to support small, disadvantaged businesses by incentivizing larger corporations to contract with them and help them grow.

Business and Industry

https://www.nysenate.gov/legislation/bills/2025/S8171