What's happening
Writing a plain-English summary… Track this bill to get it by email.
Why it matters
Albany, before your first meeting.
Every bill that moved yesterday, summarized in a sentence and ranked by impact. The Albany Scorecard follows on Sundays.
Free. Unsubscribe in one click. Want alerts on specific bills? Create an account.
Who cares
Headline styles
Sponsors
2 Co-sponsors
History
- Referred to ways and means
- Delivered to assembly
- Passed senateVote 59–0
- Ordered to third reading cal.990
- Committee discharged and committed to rules
- Print number 4376a
- Amend and recommit to investigations and government operations
- Referred to investigations and government operations
- Returned to senate
- Died in assembly
- Referred to ways and means
- Delivered to assembly
Show 4 earlier actions
- Passed senateVote 61–0
- Ordered to third reading cal.1516
- Committee discharged and committed to rules
- Referred to investigations and government operations
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Relates to small business savings accounts
In Assembly Committee · Ways And Means · Sponsor Charles Lavine
Full text
The text isn't available here yet. Check nysenate.gov.
Sponsor's memo
Title of bill
An act to amend the tax law, in relation to establishing small business savings accounts
Purpose
This bill would allow small businesses to make contributions into a small business tax-deferred savings account to which the monies in such account may be withdrawn tax free during times of specified economic hardship, for the purpose of job retention or creation, or times where the Governor deems it a natural disaster to warrant assistance from the federal government.
Summary of provisions
Tax law is amended by adding a new section 42 requiring the commissioner to set minimum standards in establishing small business savings accounts while seeking to minimize fees, minimize risk of loss of principal, and ensure a range of investment risk options available to account beneficiaries. This section defines qualified contributions and qualified distributions from these saving accounts. The aggregate amount of contributions for any taxable year shall not exceed an amount equal to 10% of the gross profits of the business for the preceding taxable year. Qualified Distributions from a small business savings account shall not be includible in gross income. Any amounts distributed out of the small business savings account that are not qualified distributions shall be included in gross income for the taxable year of the distribution. Qualified Distributions as defined by this section are distributed during a specified period of economic hardship, distributions that are certified by the taxpayer as part of a plan which provides for the reinvestment of such distribution for the funding of worker hiring or financial stabilization for the purposes of job retention or creation, and distributions during a period where the Governor deems it a natural disaster to warrant assistance from the federal government under the Robert T. Stafford Disaster Relief and Emergency Assistance Act. In addition this section states that any amount contributed to a small business savings account once distributed shall not be treated as a qualified distribution unless such distribution is made no later than eight years after the date of contribution.
Read the full memo (617 words)
Section 209 of the tax law is amended by adding a new subdivision 13 claims that for any taxable year beginning on or after January 1 2016 any eligible small business pursuant to section 42 shall be exempt from imposed taxes for any contribution to and qualified distribution from a small business savings account. If a taxpayer files and receives funds that aren't considered qualified then the amount exempt will be added back to the tax in the next succeeding taxable year.
Subsection c of section 612 of the tax law is amended by adding a new paragraph 42 stating that if a taxpayer files for and receives exemptions from the tax imposed under this section that are not considered to be a qualified contribution to or a qualified distribution from a small business savings account then the amount of any such exemption claimed shall be added back to the tax in the next succeeding taxable year.
Justification
More than 170,000 small businesses were lost after the economic downturn of 2008 and many that survived are still having trouble obtaining loans and credit to help them stay open. This bill seeks to serve as a remedy for the challenges that small businesses face accessing credit to pay their bills by encouraging them to put money into a special savings account that can be used tax-free in times of economic hardship, for the purposes of job retention or creation, and during natural disasters.
Legislative history
This is a new bill.
Fiscal implications
To be determined.
Effective date
This act shall take effect immediately and shall apply to taxable years beginning after such date.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.