BILL NUMBER: S7014
SPONSOR: RHOADS
 
TITLE OF BILL:
An act to amend the tax law, in relation to certain business taxpayers
 
PURPOSE:
Relates to businesses with fewer than twenty employees.
 
SUMMARY OF PROVISIONS:
Section 1. Section 210 of the tax is amended by adding a new subdivi-
sion 4 to read as follows: 4. In the case of a taxpayer who employs, the
first fifty thousand dollars is exempt from taxation.
2. Section 601 of the tax law is amended adding a new subsection (h-1)
to read as follows: (h-1) Businesses with twenty or fewer employees, the
first fifty thousand dollars is exempt from taxation.
3. This act shall take effect immediately and shall apply to taxable
years beginning on or after January 1, 2027.
 
JUSTIFICATION:
New York's tax law must be amended to offer relief to small businesses.
Businesses with fewer than 20 employ over 1.5 million New Yorkers,
accounting for 18.6 percent of the workforce across the state. These
small businesses are crucial to New York State and create a healthy
economy. They contribute to local economic growth, provide local employ-
ment opportunities, and are the backbone of local communities.
With rising costs burdening businesses across New York, it is growing
increasingly difficult for small businesses to compete in the global
marketplace. This legislation offers much needed financial relief by
introducing a tax exemption for the first fifty thousand dollars earned
by businesses who employ twenty or fewer people. This exemption provides
a valuable lifeline to allow them to continue to operate as integral
parts of communities.
 
LEGISLATIVE HISTORY:
New bill.
 
FISCAL IMPLICATIONS:
To be determined.
 
EFFECTIVE DATE: :
This act shall take effect immediately and shall apply to taxable years
beginning on or after January 1, 2027.

Statutes affected:
S7014: 210 tax law, 601 tax law