What's happening
This bill creates a tax credit for businesses that contract with minority- and women-owned enterprises for goods or services.
Why it matters
Encourages broader economic participation. By incentivizing businesses to contract with minority- and women-owned enterprises, the bill aims to diversify the supply chain and create more equitable opportunities for historically underrepresented groups in the business sector.
Targets contracts outside existing affirmative action requirements. The tax credit is specifically for contracts not already covered by existing state affirmative action laws, potentially expanding support to a wider range of business relationships that currently receive little or no encouragement.
Significant financial incentive with clear limits. The credit equals one-third of eligible expenditures, but is capped at 5% of the business’s total government contract income for the year, balancing meaningful support for inclusion with fiscal responsibility.
Excludes self-dealing and ensures integrity. Only non-minority- or non-women-owned businesses are eligible for the credit, preventing companies from claiming the incentive for transactions within their own minority- or women-owned status and focusing the benefit on expanding partnerships.
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
Tax Credits for MWBE Contracts
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to investigations and government operations
- 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.
Tax Breaks for MWBE Contracts
In Assembly Committee · Ways And Means · Sponsor Crystal Peoples-Stokes
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
319
2017-2018 Regular Sessions
IN SENATE (Prefiled)
January 4, 2017
Introduced by Sen. PERALTA -- read twice and ordered printed, and when printed to be committed to the Committee on Investigations and Government Operations
AN ACT to amend the tax law, in relation to establishing business franchise and personal income tax credits for certain businesses which contract with the state or political subdivisions thereof and in unrelated contracts, also with minority and women-owned business enterprises
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Section 210-B of the tax law is amended by adding a new subdivision 28 to read as follows:
28. Minority and women-owned business employment incentive credit. (a) General. A taxpayer shall be allowed a credit, to be computed as provided in this subdivision, against the tax imposed by this article for a certain portion of the consideration paid to a minority or womenowned business enterprise pursuant to a contract for the provision of goods or services. The credit provided for in this subdivision shall be allowed with respect to the tax year in which the consideration is paid to the minority or women-owned business enterprise.
(b) Definitions. For the purposes of this subdivision, the following terms shall mean:
(i) "Government agency" means a state agency or a state authority as defined in subdivision eleven of section three hundred ten of the executive law, or a political subdivision as defined in subdivision one of section one hundred of the general municipal law.
(ii) "Minority or women-owned business enterprise" means a minorityowned business enterprise as defined in subdivision seven of section three hundred ten of the executive law or a women-owned business enter-
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD00044-01-7
S. 319 2
prise as defined in subdivision fifteen of section three hundred ten of the executive law.
(c) Computation. The credit authorized by this subdivision shall be equal to one-third of all expenditures paid by the taxpayer to a minority or women-owned business enterprise pursuant to a contract for the provision of goods and services during the tax year, provided that such contract was not subject to the provisions of article fifteen-A of the executive law or any other provision of law relating to the affirmative action, and the taxpayer is not a minority or women-owned business enterprise. Furthermore, the amount of such credit shall not exceed five percent of all consideration paid to the taxpayer during the tax year pursuant to contracts with government agencies for the provision of goods or services.
§ 2. Subparagraph (B) of paragraph 1 of subsection (i) of section 606 of the tax law is amended by adding a new clause (xliii) to read as follows: (xliii) Minority and Amount of credit women-owned business under subdivision employment incentive twenty-eight of credit under section two subsection (ccc) hundred ten-B
§ 3. Section 606 of the tax law is amended by adding a new subsection (ccc) to read as follows:
(ccc) Minority and women-owned business employment incentive credit. (1) General. A taxpayer shall be allowed a credit to be computed as provided in this subsection, against the tax imposed by this article for a certain portion of the consideration paid to a minority or women-owned business enterprise pursuant to a contract for the provision of goods or services. The credit provided for in this subsection shall be allowed with respect to the tax year in which the consideration is paid to the minority or women-owned business enterprise.
(2) Definitions. For the purposes of this subsection, the following terms shall mean:
(i) "Government agency" means a state agency or a state authority as defined in subdivision eleven of section three hundred ten of the executive law, or a political subdivision as defined in subdivision one of section one hundred of the general municipal law.
(ii) "Minority or women-owned business enterprise" means a minorityowned business enterprise as defined in subdivision seven of section three hundred ten of the executive law or a women-owned business enterprise as defined in subdivision fifteen of section three hundred ten of the executive law.
(3) Computation. The credit authorized by this subsection shall be equal to one-third of all expenditures paid by the taxpayer to a minority or women-owned business enterprise pursuant to a contract for the provision of goods and services during the tax year, provided that such contract was not subject to the provisions of article fifteen-A of the executive law or any other provision of law relating to affirmative action, and the taxpayer is not a minority or women-owned business enterprise. Furthermore, the amount of such credit shall not exceed five percent of all consideration paid to the taxpayer during the tax year pursuant to contracts with government agencies for the provision of goods or services.
§ 4. This act shall take effect on the first of January next succeeding the date on which it shall have become a law and shall apply to tax years commencing on or after such date.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the tax law, in relation to establishing business franchise and personal income tax credits for certain businesses which contract with the state or political subdivisions thereof and in unrelated contracts, also with minority and women-owned business enterprises
Purpose
Establishes business franchise and personal income tax credits for a portion of the consideration paid under a contract with a minority or women-owned business.
Summary of provisions
Section 1 amends section 210-B the tax law by adding a new subdivision 28 creating a business franchise tax credit for businesses that contract with both the state and, in a separate and unrelated transaction, with a women or minority owned business.
Sections 2 and 3 establish a personal income tax credit for tax payers who contract with both the state and, in a separate and unrelated transaction, with a women or minority owned business.
Section 4 establishes the effective date.
Justification
New York has been a longtime leader in the promotion of minority and women owned business enterprises ("MWBEs"). The core goals of the State's efforts are 1) equality of economic opportunities for MWBEs and 2) elimination of barriers to their participation in state contracts. The problem is that the State has focused on the latter as the sole means of achieving the former. In order to help build fully self-sustaining minority and women owned businesses, the State must also do its part to encourage private entities to contract with MWBEs. This legislation would incentivize the private sector to build long-term business relationships with MWBEs by offering business franchise and personal income tax credits for companies and individuals that contract with both MWBEs and the State. State contracts are critical for initial growth, but insufficient for long-term success. This legislation would help build grow existing MWBEs while paving the way for the next generation.
Legislative history
2015-2016--S1114 2013-2014 - S.37 2011-12: S.6754
Fiscal implications
To be determined.
Effective date
This act shall take effect on the first of January next succeeding the date on which it shall have become a law and shall apply to tax years commencing on or after such date.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.