New York S 6539: Relates to authorizing small business tax-deferred savings accounts

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S06539 Summary:

BILL NOS06539 

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SAME ASNo Same As

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SPONSORSANDERS

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COSPNSRHELMING, HINCHEY, MAY

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MLTSPNSR

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Add §138-a, Ec Dev L; amd §§208 & 612, Tax L

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Relates to authorizing small business tax-deferred savings accounts.

Go to top S06539 Actions:

BILL NOS06539 

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03/17/2025REFERRED TO COMMERCE, ECONOMIC DEVELOPMENT AND SMALL BUSINESS

01/07/2026REFERRED TO COMMERCE, ECONOMIC DEVELOPMENT AND SMALL BUSINESS

Go to topS06539 Committee&nbspVotes:

Go to topS06539 Floor&nbspVotes:

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

Go to topS06539 Text:

 STATE OF NEW YORK
 ________________________________________________________________________

 6539

 2025-2026 Regular Sessions

 IN SENATE

 March 17, 2025
 ___________

 Introduced by Sens. SANDERS, HELMING, HINCHEY, MAY -- read twice and
 ordered printed, and when printed to be committed to the Committee on
 Commerce, Economic Development and Small Business

 AN ACT to amend the economic development law and 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. The economic development law is amended by adding a new
 2 section 138-a to read as follows:
 3 § 138-a. Small business tax-deferred savings accounts. 1. A "small
 4 business taxpayer" or "small business" shall have the same meaning as
 5 defined in section one hundred thirty-one of this article and shall meet
 6 the requirements of paragraph (f) of subdivision one of section two
 7 hundred ten of the tax law.
 8 2. Any small business shall be authorized to establish with any finan-
 9 cial organization a small business tax-deferred savings account and to
 10 make deposits into and withdrawals from such account. For purposes of
 11 this section, "financial organization" shall mean an organization
 12 authorized to do business in the state of New York and (a) which is
 13 licensed or chartered by the department of financial services, (b) is
 14 chartered by an agency of the federal government, or (c) is subject to
 15 the jurisdiction and regulation of the securities and exchange commis-
 16 sion of the federal government.
 17 3. The amount deposited into such tax-deferred savings accounts and
 18 any interest earned on such deposits shall be subject to the provisions
 19 of subparagraph twenty-four of paragraph (a) of subdivision nine of
 20 section two hundred eight and paragraph forty-eight of subsection (c) of
 21 section six hundred twelve of the tax law, unless such amounts are with-
 22 drawn and expended for a purpose other than a qualifying purpose.

 EXPLANATION--Matter in italics (underscored) is new; matter in brackets
 [ ] is old law to be omitted.
 LBD10229-01-5

 S. 6539 2

 1 4. For the purposes of this act, a qualifying purpose shall include
 2 small business taxpayer expenditures (a) for tangible personal property
 3 or other tangible property, including but not limited to buildings
 4 and structural components of buildings, that are principally used in the
 5 ordinary course of the taxpayer's trade or business and (b) other
 6 expenditures deemed appropriate by the department, which will improve
 7 the competitiveness and productivity of a small business and results in
 8 the creation or retention of full-time jobs.
 9 5. The monies deposited into such tax-deferred savings accounts during
 10 any taxable year may not exceed five thousand dollars.
 11 6. On or before April first, two thousand twenty-seven and annually
 12 thereafter, the department, in consultation with the department of taxa-
 13 tion and finance, shall report on the number of small business taxpayers
 14 utilizing this program, the aggregate amount deposited for which a tax
 15 credit was claimed, the average aggregate amount on deposit in small
 16 business savings accounts, the amount of qualifying and non-qualifying
 17 withdrawals, and any other such data deemed necessary and appropriate by
 18 the department.
 19 § 2. Paragraph (a) of subdivision 9 of section 208 of the tax law is
 20 amended by adding a new subparagraph 24 to read as follows:
 21 (24) any amount deposited into a small business tax-deferred savings
 22 account c