New York S 695: Relates to authorizing small business tax-deferred savings accounts

Bill Text

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S00695 Summary:

BILL NOS00695 

&nbsp

SAME ASNo Same As

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SPONSORGALLIVAN

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COSPNSR

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MLTSPNSR

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Amd §§208 & 612, Tax L

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Relates to authorizing small business tax-deferred savings accounts for the purpose of improving facilities of such business and for procurement of machinery or equipment.

Go to top S00695 Actions:

BILL NOS00695 

&nbsp

01/08/2025REFERRED TO BUDGET AND REVENUE

01/07/2026REFERRED TO BUDGET AND REVENUE

Go to topS00695 Committee&nbspVotes:

Go to topS00695 Floor&nbspVotes:

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

Go to topS00695 Text:

 STATE OF NEW YORK
 ________________________________________________________________________

 695

 2025-2026 Regular Sessions

 IN SENATE

 (Prefiled)

 January 8, 2025
 ___________

 Introduced by Sen. GALLIVAN -- 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 authorizing the creation of
 small business tax-deferred savings accounts

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

 1 Section 1. Paragraph (a) of subdivision 9 of section 208 of the tax
 2 law is amended by adding a new subparagraph 24 to read as follows:
 3 (24) any deposit made by a small business as defined in section one
 4 hundred thirty-one of the economic development law into a small business
 5 tax-deferred savings account maintained by a banking organization as
 6 defined in subdivision eleven of section two of the banking law and
 7 established for the purposes of improving the facilities of such busi-
 8 ness or for procurement of machinery or equipment or any interest earned
 9 on any small business tax-deferred savings account.
 10 § 2. Subdivision 9 of section 208 of the tax law is amended by adding
 11 a new paragraph (c-4) to read as follows:
 12 (c-4) Entire net income shall include any withdrawal exclusive of
 13 interest income made by a small business as defined in section one
 14 hundred thirty-one of the economic development law from a small business
 15 tax-deferred savings account maintained by a banking organization as
 16 defined in subdivision eleven of section two of the banking law and
 17 established for the purposes of improving the facilities of such busi-
 18 ness or for procurement of machinery or equipment and an additional ten
 19 percent of any withdrawals exclusive of interest income from the small
 20 business tax-deferred savings account not used for improving the facili-
 21 ties of such business or for procurement of machinery or equipment.
 22 § 3. Subsection (b) of section 612 of the tax law is amended by adding
 23 a new paragraph 44 to read as follows:

 EXPLANATION--Matter in italics (underscored) is new; matter in brackets
 [ ] is old law to be omitted.
 LBD02612-01-5

 S. 695 2

 1 (44) Any withdrawal exclusive of interest income made by a small busi-
 2 ness as defined in section one hundred thirty-one of the economic devel-
 3 opment law from a small business tax-deferred savings account maintained
 4 by a banking organization as defined in subdivision eleven of section
 5 two of the banking law and established for the purposes of improving the
 6 facilities of such business or for procurement of machinery or equipment
 7 and an additional ten percent of any withdrawals exclusive of interest
 8 income from the small business tax-deferred savings account not used for
 9 improving the facilities of such business or for procurement of machin-
 10 ery or equipment.
 11 § 4. Subsection (c) of section 612 of the tax law is amended by adding
 12 a new paragraph 48 to read as follows:
 13 (48) Any deposit made by a small business as defined in section one
 14 hundred thirty-one of the economic development law into a small business
 15 tax-deferred savings account maintained by a banking organization as
 16 defined in subdivision eleven of section two of the banking law and
 17 established for the purposes of improving the facilities of such busi-
 18 ness or for procurement of machinery or equipment or any interest earned
 19 on any small business tax-deferred savings account.
 20 § 5. This act shall take effect immediately and shall apply to taxable
 21 years beginning on or after J