New York S 4427: Relates to a business tax credit for purchase of data breach insurance

Bill Text

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S04427 Summary:

BILL NOS04427 

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SAME ASNo Same As

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SPONSORASHBY

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COSPNSR

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MLTSPNSR

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Amd §§210-B & 606, Tax L

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Relates to a business tax credit for purchase of data breach insurance.

Go to top S04427 Actions:

BILL NOS04427 

&nbsp

02/04/2025REFERRED TO BUDGET AND REVENUE

01/07/2026REFERRED TO BUDGET AND REVENUE

Go to topS04427 Committee&nbspVotes:

Go to topS04427 Floor&nbspVotes:

There are no Assembly votes for this bill in this legislative session.

Go to topS04427 Text:

 STATE OF NEW YORK
 ________________________________________________________________________

 4427

 2025-2026 Regular Sessions

 IN SENATE

 February 4, 2025
 ___________

 Introduced by Sen. ASHBY -- read twice and ordered printed, and when
 printed to be committed to the Committee on Budget and Revenue

 AN ACT to amend the tax law, in relation to a business tax credit for
 purchase of data breach insurance; and providing for the repeal of
 such provisions upon expiration thereof

 The People of the State of New York, represented in Senate and Assem-
 bly, do enact as follows:

 1 Section 1. Section 210-B of the tax law is amended by adding a new
 2 subdivision 61 to read as follows:
 3 61. Data breach insurance credit. (a) A taxpayer that is a business or
 4 owner of a business shall be allowed a credit against the tax imposed by
 5 this article equal to twenty-five percent of the premium paid during the
 6 taxable year for qualified data breach insurance. For purposes of this
 7 section, the term "qualified data breach insurance" means coverage
 8 provided by an insurance company for expenses or losses in connection
 9 with the theft, loss, disclosure, inaccessibility, or manipulation, of
 10 data.
 11 (b) In order to qualify for such credit, taxpayers shall adopt and be
 12 in compliance with one of the following:
 13 (1) Version 1.0 of the framework for improving critical infrastructure
 14 cybersecurity published by the national institute of standards and tech-
 15 nology as in effect on February twelfth, two thousand fourteen or subse-
 16 quent versions or iterations; or
 17 (2) Any similar standard specified by the state comptroller, after
 18 consultation with the director of the office of information technology
 19 services.
 20 (c) In the case of insurance coverage under which amounts are payable
 21 for other than expenses or losses described in paragraph (a) of this
 22 subdivision:
 23 (1) No amount shall be treated as premiums for qualified data breach
 24 insurance unless the charge for such insurance is either separately

 EXPLANATION--Matter in italics (underscored) is new; matter in brackets
 [ ] is old law to be omitted.
 LBD08839-01-5

 S. 4427 2

 1 stated in the contract, or furnished to the policyholder by the insur-
 2 ance company in a separate statement;
 3 (2) The amount taken into account as the premium paid or incurred for
 4 such insurance shall not exceed such charge; and
 5 (3) No amount shall be treated as paid or incurred for such insurance
 6 if the amount specified in the contract, or furnished to the policy-
 7 holder by the insurance company in a separate statement, as the charge
 8 for such insurance is unreasonably large in relation to the total charg-
 9 es under the contract.
 10 (d) Premiums shall be taken into account under paragraph (a) of this
 11 subdivision only if such premiums are paid or incurred in the ordinary
 12 course of the taxpayer's trade or business.
 13 (e) This subdivision shall not apply to a business which employs one
 14 hundred and one or more employees.
 15 § 2. Section 606 of the tax law is amended by adding a new subsection
 16 (qqq) to read as follows:
 17 (qqq) Data breach insurance credit. (1) A taxpayer that is a business
 18 or owner of a business shall be allowed a credit against the tax imposed
 19 by this article equal to twenty-five percent of the premium paid during
 20 the taxable year for qualified data breach insurance. For purposes of
 21 this section, the term "qualified data breach insurance" means coverage
 22 provided by an insurance company for expenses or losses in connection
 23 with the theft, loss, disclosure, inaccessibility, or manipulation, of
 24 data.
 25 (2) In order to qualify for such credit, taxpayers shall adopt and be
 26 in compliance w