Relates to authorizing small business tax-deferred savings accounts

1 Co-sponsor

• Phil Boyle

Title of bill

An act to amend the tax law, in relation to authorizing the creation of small business tax-deferred savings accounts

Purpose or general idea of bill

Allows any small business to deposit profits into a small business tax-deferred savings account. The monies in such account may be withdrawn tax free only to create full time jobs.

Summary of specific provisions

Section 1 amends section 208 of the tax law to create the small business tax-deferred savings account and establishes that the funds may only be withdrawn to create or preserve full time jobs.

Section 2 amends section 209 of the tax law by adding a new subdivision 11 to create the tax exemption associated with the small business savings account.

Section 3 amends subsection (b) of section 612 of the tax law by adding a new paragraph 42 to allow for withdrawals by small businesses from such accounts.

Section 4 amends subsection (c) of section 612 of the tax law, and establishes that the funds may only be withdrawn to create or preserve full time jobs.

Section 5 sets the effective date.

Justification

This bill will permit small businesses to create tax deferred accounts which will enable and incentivize job creation. More importantly, these accounts will not only create jobs but will create quality full time jobs.

Prior legislative history

S.6717-A(2014)

Fiscal implications

To be determined

Effective date

Immediately, and apply to taxable years beginning on or after January 1, 2016.