Bill Text: NY S01691 | 2021-2022 | General Assembly | Introduced

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Bill Title: 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.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2022-01-05 - REFERRED TO BUDGET AND REVENUE [S01691 Detail]

Download: New_York-2021-S01691-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                          1691

                               2021-2022 Regular Sessions

                    IN SENATE

                                    January 14, 2021
                                       ___________

        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 27 to read as follows:
     3    (27)  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 43 to read as follows:
    24    (43) Any withdrawal exclusive of interest income made by a small busi-
    25  ness as defined in section one hundred thirty-one of the economic devel-

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD04066-01-1
        S. 1691                             2

     1  opment law from a small business tax-deferred savings account maintained
     2  by  a  banking  organization as defined in subdivision eleven of section
     3  two of the banking law and established for the purposes of improving the
     4  facilities of such business or for procurement of machinery or equipment
     5  and  an  additional ten percent of any withdrawals exclusive of interest
     6  income from the small business tax-deferred savings account not used for
     7  improving the facilities of such business or for procurement of  machin-
     8  ery or equipment.
     9    § 4. Subsection (c) of section 612 of the tax law is amended by adding
    10  a new paragraph 44 to read as follows:
    11    (44)  Any  deposit  made by a small business as defined in section one
    12  hundred thirty-one of the economic development law into a small business
    13  tax-deferred savings account maintained by  a  banking  organization  as
    14  defined  in  subdivision  eleven  of  section two of the banking law and
    15  established for the purposes of improving the facilities of  such  busi-
    16  ness or for procurement of machinery or equipment or any interest earned
    17  on any small business tax-deferred savings account.
    18    § 5. This act shall take effect immediately and shall apply to taxable
    19  years beginning on or after January 1, 2022.