Bill Text: NY A02457 | 2017-2018 | General Assembly | Introduced
Bill Title: Relates to authorizing small business tax-deferred savings accounts.
Spectrum: Slight Partisan Bill (Democrat 19-8)
Status: (Introduced - Dead) 2018-01-03 - referred to ways and means [A02457 Detail]
Download: New_York-2017-A02457-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 2457 2017-2018 Regular Sessions IN ASSEMBLY January 20, 2017 ___________ Introduced by M. of A. LAVINE, McDONOUGH, SCHIMMINGER, OTIS, SIMANOWITZ, SKARTADOS, ZEBROWSKI, SALADINO, RAIA, RA, PERRY, GJONAJ, BENEDETTO, GUNTHER, FAHY, GRAF, HOOPER, SANTABARBARA, BARRON, RIVERA, MURRAY -- Multi-Sponsored by -- M. of A. COOK, FINCH, GOODELL, HEVESI, LALOR, PALMESANO, PEOPLES-STOKES, SOLAGES, THIELE -- read once and referred to the Committee on 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 139 to read as follows: 3 § 139. 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 and deposit 9 profits into a small business tax-deferred savings account. 10 3. The monies in such tax-deferred savings accounts may be deposited 11 or withdrawn tax free when they are expended for expansion of such small 12 business for the purpose of creating or preserving full time jobs. 13 4. For the purposes of this act, a qualifying purpose shall include 14 small business taxpayer expenditures that result in the creation or 15 retention of full-time jobs. In addition, working capital used for other 16 activities, deemed appropriate by the department, which will improve the 17 competitiveness and productivity of a small business and results in the 18 creation or retention of full-time jobs shall be considered a qualifying 19 business expenditure. Qualifying small business taxpayer expenditures 20 for the purpose of this section shall include, but not be limited to, EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD07881-01-7A. 2457 2 1 new construction, renovation or leasehold improvements, and the acquisi- 2 tion of land, buildings, machinery and equipment. 3 5. The monies on deposit in such tax-deferred savings accounts may not 4 exceed more than five thousand dollars in any taxable year. 5 6. On or before April first, and annually thereafter, the department, 6 in consultation with the department of taxation and finance, shall 7 report on the number of small business taxpayers utilizing this program, 8 the average aggregate amount on deposit, the qualifying expenses 9 claimed, any qualifying expenses deemed inappropriate and any other such 10 data deemed necessary and appropriate by the department. 11 § 2. Section 209 of the tax law is amended by adding a new subdivision 12 13 to read as follows: 13 13. For any taxable year beginning on or after January first, two 14 thousand eighteen, any small business, as such term is defined pursuant 15 to section one hundred thirty-nine of the economic development law, 16 shall be exempt from all state income taxes imposed pursuant to this 17 article for any deposit or withdrawal from a small business tax-deferred 18 savings account established pursuant to section one hundred thirty-nine 19 of the economic development law and used for the expansion of such small 20 business for the purpose of creating or preserving full time jobs. If a 21 small business taxpayer files for and receives an exemption from the 22 state income tax imposed under this section pursuant to the provisions 23 of this subdivision and the funds deposited or withdrawn, or any portion 24 thereof, are not expended for a qualifying purpose as set forth in 25 section one hundred thirty-nine of the economic development law, then 26 the amount of such exemption claimed by the small business taxpayer 27 shall be added back to the amount of state income liability tax in the 28 next succeeding taxable year or in the year in which the exemption is 29 disallowed. 30 § 3. Subsection (c) of section 612 of the tax law is amended by adding 31 a new paragraph 42 to read as follows: 32 (42) Any deposit or withdrawal from a small business tax-deferred 33 savings account established pursuant to section one hundred thirty-nine 34 of the economic development law and used for the expansion of such small 35 business for the purpose of creating or preserving full time jobs. If a 36 small business taxpayer files for and receives an exemption from the 37 state income tax imposed under this section pursuant to the provisions 38 of this paragraph and the funds deposited or withdrawn, or any portion 39 thereof, are not expended for a qualifying purpose as set forth in 40 section one hundred thirty-nine of the economic development law, then 41 the amount of such exemption claimed by the small business taxpayer 42 shall be added back to state income tax in the next succeeding taxable 43 year or in the year in which the exemption is disallowed. 44 § 4. The department of taxation and finance, in consultation with the 45 department of economic development, shall review and analyze all statis- 46 tical data available for such purposes of determining the economic and 47 revenue impact associated with this act. Such data shall be included in 48 an annual report that shall also include, but not be limited to, the 49 number of small business taxpayers utilizing this program, the average 50 aggregate amount on deposit, the qualifying expenses claimed, any quali- 51 fying expenses deemed inappropriate and any other such data deemed 52 necessary and appropriate by the department. Such annual report shall be 53 posted on the websites of the department of taxation and finance and the 54 department of economic development, and transmitted to the governor, the 55 temporary president of the senate, the senate minority leader, the 56 speaker of the assembly and the assembly minority leader.A. 2457 3 1 § 5. Rules and regulations. The department of taxation and finance in 2 consultation with the department of economic development, is hereby 3 authorized to promulgate rules and regulations in accordance with the 4 state administrative procedure act that are necessary to fulfill the 5 purposes of this act. Such regulations shall include but not be limited 6 to deadlines for establishing a small business tax deferred savings 7 account, standard procedures and forms to be utilized in the program, 8 and any other such regulations deemed necessary to promote the full 9 utilization of this program. Such rules and regulations shall be 10 completed within 180 days after the effective date of this act. 11 § 6. This act shall take effect immediately.
