Bill > S09520

This bill, known as the "savings accounts for a variable economy (SAVE) for small businesses act," establishes a program for small businesses to create tax-advantaged savings accounts, referred to as "small business savings accounts." The state's tax commissioner will set standards for these accounts, aiming to minimize fees and risk while offering various investment options. Contributions to these accounts are tax-deductible, up to a limit of ten percent of the business's gross profits from the previous year. Distributions from these accounts are not taxed if they are considered "qualified distributions," meaning they are made during a period of economic hardship, as defined by specific economic indicators or commissioner-determined periods, and are used for job creation or financial stabilization. Businesses eligible for these accounts are those with twenty-five or fewer full-time employees and an annual net income under $250,000. The bill also provides exemptions from certain business and personal income taxes for contributions to and qualified distributions from these accounts, with provisions to recapture tax benefits if funds are not used for qualifying purposes. The commissioner is required to report annually on the effectiveness of these accounts in supporting small businesses during economic downturns and in fostering job growth.

Government Affairs

https://www.nysenate.gov/legislation/bills/2025/S9520