BILL NUMBER: S695
SPONSOR: GALLIVAN
 
TITLE OF BILL:
An act to amend the tax law, in relation to authorizing the creation of
small business tax-deferred savings accounts
 
PURPOSE:
This bill would establish a small business tax-deferred savings account
that would enable funds to be designated for facility improvements or
for procurement of machinery or equipment.
 
SUMMARY OF PROVISIONS:
Sections 1 and 2 amend the Tax law governing Franchise Tax on Business
Corporations by adding new provisions of law allowing for deposits into
a small business tax-deferred savings account to be tax-exempt. With-
drawals from such an account, for the identified purposes, would be
considered taxable minus any interest which has accrued.
Section 3 and 4 amends the Tax law governing Personal Income Taxes by
adding a new paragraph and subparagraph to allow for deposits into a
small business tax-deferred savings account to be tax-exempt. With-
drawals from such an account, for the identified purposes, would be
considered taxable minus any interest which has accrued.
Section 5 sets forth the effective date.
 
JUSTIFICATION:
Small businesses play a vital role in New York State's economy. By
establishing a small business tax deferred savings account, these small
businesses will be afforded an opportunity to reinvest into their oper-
ations, thereby enhancing efficiency as well as sustaining and growing
their workforce.
 
LEGISLATIVE HISTORY:
2023-24: S.236 Referred to Budget and Revenue
2021-22: S.1691/A.8225 Referred to Investigations and Government
Operations/held for consideration in Ways and Means
2019-20: S.859 Referred to Investigations and Government Operations
2017-18: S.3391a Referred to Investigations and Government Operations
2015-16: S.7688 Referred to Investigations and Government Operations
 
FISCAL IMPLICATIONS:
None.
 
EFFECTIVE DATE:
This act shall take effect immediately and shall apply to taxable years
beginning on or after January 1, 2024.

Statutes affected:
S695: 208 tax law, 208(9) tax law, 612 tax law, 612(b) tax law, 612(c) tax law