What's happening
This bill allows New York to bulk purchase PPE for small businesses and provides them with a tax credit for PPE costs.
Why it matters
Reduces costs and barriers for small businesses. by letting them access PPE at the state's bulk purchasing price, potentially making it cheaper and easier to protect employees and customers.
Creates a direct tax incentive. for small businesses to invest in PPE, allowing them to recoup the full cost through tax credits, which may encourage broader and more consistent use of protective equipment.
Supports public health and business continuity. by lowering financial hurdles to PPE compliance, potentially reducing workplace outbreaks and helping small businesses remain open during health crises.
Allows unused credits to be carried forward. to future tax years, ensuring that businesses who cannot immediately use the full credit still benefit over time—providing ongoing financial relief as needed.
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Who cares
Headline styles
Help Small Businesses Buy PPE
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to rules
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
9058
IN SENATE
October 19, 2020
Introduced by Sen. GOUNARDES -- read twice and ordered printed, and when printed to be committed to the Committee on Rules
AN ACT to amend the economic development law and the tax law, in relation to providing assistance to small businesses' employers in the procurement and purchasing of personal protective equipment
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Section 134 of the economic development law is amended by adding a new subdivision 13 to read as follows:
13. make bulk purchases of personal protective equipment (PPE) and make such PPE available, at cost, to small businesses as defined in this article. For purposes of this subdivision "personal protective equipment (PPE)" shall mean all equipment worn or used to minimize exposure to a communicable disease, including but not limited to gloves, masks and faceshields.
§ 2. Section 210-B of the tax law is amended by adding a new subdivision 55 to read as follows:
55. Credit for the purchase of personal protective equipment (PPE) by small business employers. (a) A taxpayer who is a small business, as defined in section one hundred thirty-one of the economic development law, shall be allowed a credit against the tax imposed by this article for the purchase of personal protective equipment (PPE) for use by such taxpayer's employees. The total amount of the credit shall be the cost incurred in purchasing the personal protective equipment (PPE).
(b) For the purposes of this subdivision "personal protective equipment (PPE)" shall mean all equipment worn or used to minimize exposure to a communicable disease, including but not limited to gloves, masks and faceshields.
(c) If the amount of credit allowable under this subdivision shall exceed the taxpayer's tax for such year, the excess may be carried over to the following year or years and may be deducted from the taxpayer's tax for such year or years.
(d) If all or any part of the credit provided for under this subdivision was allowed or carried over from a prior taxable year or years, a
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD17339-01-0
S. 9058 2
taxpayer shall reduce the allowable credit for additional qualifying expenditures in a subsequent tax year by the amount of the credit previously allowed or carried over.
§ 3. Section 606 of the tax law is amended by adding a new subsection (kkk) to read as follows:
(kkk) Credit for the purchase of personal protective equipment (PPE) by small business employers. (1) A taxpayer who is a small business, as defined in section one hundred thirty-one of the economic development law, shall be allowed a credit of personal protective equipment (PPE) for use by such taxpayer's employees. The total amount of the credit shall be the cost incurred in purchasing the personal protective equipment (PPE).
(2) For the purposes of this subsection "personal protective equipment (PPE)" shall mean all equipment worn or used to minimize exposure to a communicable disease, including but not limited to gloves, masks and faceshields.
(3) If the amount of credit allowable under this subsection shall exceed the taxpayer's tax for such year, the excess may be carried over to the following year or years and may be deducted from the taxpayer's tax for such year or years.
(4) If all or any part of the credit provided for under this subsection was allowed or carried over from a prior taxable year or years, a taxpayer shall reduce the allowable credit for additional qualifying expenditures in a subsequent tax year by the amount of the credit previously allowed or carried over.
§ 4. Subparagraph (B) of paragraph 1 of subsection (i) of section 606 of the tax law is amended by adding a new clause (xlvi) to read as follows:
(xlvi) Credit for Amount of credit the purchase of personal under subdivision protective equipment (PPE) fifty-five of section by small business employers two hundred ten-B under subsection (kkk)
§ 5. This act shall take effect immediately; provided that sections two, three and four of this act shall apply to taxable years beginning on and after January 1, 2020.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the economic development law and the tax law, in relation to providing assistance to small businesses' employers in the procurement and purchasing of personal protective equipment
Purpose or general idea of bill
An act to amend the economic development law and the tax law, in relation to providing assistance to small businesses' employers in the procurement and purchasing of personal protective equipment
Summary of provisions
Section 1: Amends section 134 of the economic development law to create a program within the Division of Small Business to make bulk purchases of PPE and provide them at cost to small businesses. Small business is defined in the existing section of the law as a business with 100 or fewer employees. 'PPE' is defined as all equipment proven to help prevent the spread of communicable disease.
Section 2: Amends section 210-b of the tax law in order to provide a tax credit to any small business, as defined in the above section, for any expense incurred for the purchase of PPE for use by the business. If any amount of the allowable tax credit exceeds the taxpayer's tax in a given year, the excess can be carried over to the subsequent year.
Section 3: Amends section 606 of the tax law in order to provide a tax credit for small business purchase of PPE, and allows any excess credit to be carried over to the following year.
Section 4: Adds a new clause (xlvi) to tax law section 606, subparagraph B of paragraph 1 of section (i) referencing the above amended subsections of tax code 606 and 210-b, as relates to the credit for purchase of PPE.
Section 5: This act will take effect immediately, provided that sections 2, 3 and 4 will apply beginning in the taxable year beginning January 1, 2021.
Justification
As New York's small businesses struggle to reopen during the Covidl9 pandemic, they are struggling to handle lost revenue and the increased cost of adapting to the public health realities that are necessary to keep employees and patrons safe as they operate their businesses. The purchase of PPE, while necessary, is an additional cost to small busi- nesses that are operating on very narrow margins. This bill will create a program in the Division for Small Businesses to bulk buy PPE, so as to take advantage of lower costs, and distribute that equipment on to small businesses at cost. This will allow the State to leverage its buying power and pass on cost savings to local business owners. Additionally, the bill creates a tax credit for any small business, as defined by having 100 employees or less, for any cost associated with PPE. The lowered cost combined with a tax credit is a necessary step in helping
small, local businesses, which are the fabric of our communities, recover during the current recession.
Prior legislative history
None
Fiscal implications
TBD
Effective date
Immediately
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.