Bill Text: NY S03028 | 2023-2024 | General Assembly | Introduced

---

Bill Title: Creates a tax credit for small businesses that sell a certain percentage of products produced in New York state; provides such small businesses include independently or privately-owned cafes, restaurants, eateries, bars, pubs, breweries, distilleries, orchards, food trucks, retail stores, farm stands, hotels, or motels.

Spectrum: Partisan Bill (Republican 4-0)

Status: (Introduced) 2024-01-03 - REFERRED TO BUDGET AND REVENUE [S03028 Detail]

Download: New_York-2023-S03028-Introduced.html

---

                STATE OF NEW YORK
        ________________________________________________________________________

                                          3028

                               2023-2024 Regular Sessions

                    IN SENATE

                                    January 26, 2023
                                       ___________

        Introduced  by  Sen.  STEC  --  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 creating a  tax  credit  for
          small  businesses  that sell a certain percentage of products produced
          in New York state

          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 59 to read as follows:
     3    59. Credit for small businesses that  sell  New  York  state  produced
     4  products. (a) A small business shall be allowed a credit against the tax
     5  imposed  by this article if such small business sells a certain percent-
     6  age of qualified products. Such credit shall be  computed  according  to
     7  the following schedule:
     8    (i)  Credit  of  one  thousand  dollars when five to nine percent of a
     9  qualifying small business' total sales are attributed  to  the  sale  of
    10  qualifying products.
    11    (ii) Credit of two thousand dollars when ten to twenty-four percent of
    12  a  qualifying  small business' total sales are attributed to the sale of
    13  qualifying products.
    14    (iii) Credit of five thousand dollars when twenty-five percent or more
    15  of a qualifying small business' total sales are attributed to  the  sale
    16  of qualifying products.
    17    (b) For the purposes of this subdivision, the term:
    18    (i)  "Small  business" shall mean a business which is an independently
    19  or privately-owned cafe, restaurant, eatery, bar, pub, brewery,  distil-
    20  lery, orchard, food truck, retail store, farm stand, hotel, or motel.
    21    (ii)  "Qualified  product" shall mean a product which is grown, brewed
    22  or distilled in New York state and such products shall include:
    23    (A) beer, wine, spirits, and ciders;

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD06721-01-3
        S. 3028                             2

     1    (B) agricultural ingredients, including  but  not  limited  to  wheat,
     2  barley, hops, apples, pumpkins, corn, cabbage, berries, soybeans, maple,
     3  or any item used for menu items;
     4    (C)  dairy products, including but not limited to milk, cream, butter,
     5  and cheese; or
     6    (D) meat products, including but not limited  to  beef,  chicken,  and
     7  pork.
     8    (c)  The  credit  allowed  under this subdivision for the taxable year
     9  shall not reduce the tax due for such  year  to  less  than  the  amount
    10  prescribed  in  paragraph  (d) of subdivision one of section two hundred
    11  ten of this article. However, if the amount of credit allowed under this
    12  subdivision for the taxable year reduces the tax to such  amount  or  if
    13  the  taxpayer  otherwise  pays  tax  based  on  the fixed dollar minimum
    14  amount, any amount of credit thus not deductible in  such  taxable  year
    15  shall  be treated as an overpayment of tax to be credited or refunded in
    16  accordance with the provisions of section  one  thousand  eighty-six  of
    17  this  chapter.  Provided,  however,  the provisions of subsection (c) of
    18  section one thousand eighty-eight of this  chapter  notwithstanding,  no
    19  interest shall be paid thereon.
    20    §  2. Section 606 of the tax law is amended by adding a new subsection
    21  (ooo) to read as follows:
    22    (ooo) Credit for small businesses that sell New  York  state  produced
    23  products. (1) A small business shall be allowed a credit against the tax
    24  imposed  by this article if such small business sells a certain percent-
    25  age of qualified products. Such credit shall be  computed  according  to
    26  the following schedule:
    27    (A)  Credit  of  one  thousand  dollars when five to nine percent of a
    28  qualifying small business' total sales are attributed  to  the  sale  of
    29  qualifying products.
    30    (B)  Credit of two thousand dollars when ten to twenty-four percent of
    31  a qualifying small business' total sales are attributed to the  sale  of
    32  qualifying products.
    33    (C)  Credit  of five thousand dollars when twenty-five percent or more
    34  of a qualifying small business' total sales are attributed to  the  sale
    35  of qualifying products.
    36    (2) For the purposes of this subsection, the term:
    37    (A)  "Small  business" shall mean a business which is an independently
    38  or privately-owned cafe, restaurant, eatery, bar, pub, brewery,  distil-
    39  lery, orchard, food truck, retail store, farm stand, hotel, or motel.
    40    (B) "Qualified product" shall mean a product which is grown, brewed or
    41  distilled in New York state and such products shall include:
    42    (i) beer, wine, spirits, and ciders;
    43    (ii)  agricultural  ingredients,  including  but not limited to wheat,
    44  barley, hops, apples, pumpkins, corn, cabbage, berries, soybeans, maple,
    45  or any item used for menu items;
    46    (iii) dairy products,  including  but  not  limited  to  milk,  cream,
    47  butter, and cheese; or
    48    (iv)  meat  products,  including but not limited to beef, chicken, and
    49  pork.
    50    (3) If the amount of the credit allowed under this subsection for  any
    51  taxable  year  shall exceed the taxpayer's tax for such year, the excess
    52  shall be treated as an overpayment of tax to be credited or refunded  in
    53  accordance with the provisions of section six hundred eighty-six of this
    54  article, provided, however, that no interest shall be paid thereon.
    55    §  3. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
    56  of the tax law is amended by adding a new clause (l) to read as follows:
        S. 3028                             3

     1  (l) Credit for small businesses       Amount of credit under
     2  that sell New York state produced     subdivision fifty-nine of
     3  products under subsection (ooo)       section two hundred ten-B
     4    § 4. This act shall take effect immediately and shall apply to taxable
     5  years beginning on or after January 1, 2024.