Bill Text: NY A02291 | 2021-2022 | General Assembly | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Relates to authorizing small business tax-deferred savings accounts.

Spectrum: Slight Partisan Bill (Republican 3-1)

Status: (Introduced - Dead) 2022-04-04 - print number 2291a [A02291 Detail]

Download: New_York-2021-A02291-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                          2291

                               2021-2022 Regular Sessions

                   IN ASSEMBLY

                                    January 14, 2021
                                       ___________

        Introduced  by M. of A. STERN -- read once and referred to the Committee
          on Ways and Means

        AN ACT to amend the  economic  development  law  and  the  tax  law,  in
          relation  to  authorizing  the creation of small business tax-deferred
          savings accounts

          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:

     1    Section  1.  The  economic  development law is amended by adding a new
     2  section 138-a to read as follows:
     3    § 138-a. Small business tax-deferred savings accounts.   1.  A  "small
     4  business  taxpayer"  or  "small business" shall have the same meaning as
     5  defined in section one hundred thirty-one of this article and shall meet
     6  the requirements of paragraph (f) of  subdivision  one  of  section  two
     7  hundred ten of the tax law.
     8    2. Any small business shall be authorized to establish with any finan-
     9  cial  organization  a small business tax-deferred savings account and to
    10  make deposits into and withdrawals from such account.  For  purposes  of
    11  this  section,  "financial  organization"  shall  mean  an  organization
    12  authorized to do business in the state of New  York  and  (a)  which  is
    13  licensed  or  chartered  by the department of financial services, (b) is
    14  chartered by an agency of the federal government, or (c) is  subject  to
    15  the  jurisdiction  and regulation of the securities and exchange commis-
    16  sion of the federal government.
    17    3. The amount deposited into such tax-deferred  savings  accounts  and
    18  any  interest earned on such deposits shall be subject to the provisions
    19  of subparagraph twenty-one of  paragraph  (a)  of  subdivision  nine  of
    20  section two hundred eight and paragraph forty-three of subsection (c) of
    21  section six hundred twelve of the tax law, unless such amounts are with-
    22  drawn and expended for a purpose other than a qualifying purpose.
    23    4.  For  the  purposes of this act, a qualifying purpose shall include
    24  small business taxpayer expenditures (a) for tangible personal  property

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD00218-01-1
        A. 2291                             2

     1  or     other  tangible  property, including but not limited to buildings
     2  and structural components of buildings, that are principally used in the
     3  ordinary course of the  taxpayer's  trade  or  business  and  (b)  other
     4  expenditures  deemed  appropriate  by the department, which will improve
     5  the competitiveness and productivity of a small business and results  in
     6  the creation or retention of full-time jobs.
     7    5. The monies deposited into such tax-deferred savings accounts during
     8  any taxable year may not exceed five thousand dollars.
     9    6.  On  or  before April first, two thousand twenty-three and annually
    10  thereafter, the department, in consultation with the department of taxa-
    11  tion and finance, shall report on the number of small business taxpayers
    12  utilizing this program, the aggregate amount deposited for which  a  tax
    13  credit  was  claimed,  the  average aggregate amount on deposit in small
    14  business savings accounts, the amount of qualifying  and  non-qualifying
    15  withdrawals, and any other such data deemed necessary and appropriate by
    16  the department.
    17    §  2.  Paragraph (a) of subdivision 9 of section 208 of the tax law is
    18  amended by adding a new subparagraph 21 to read as follows:
    19    (21) any amount deposited into a small business  tax-deferred  savings
    20  account  created   pursuant to section one hundred thirty-eight-a of the
    21  economic development law, and any  interest  earned  on  such  deposits,
    22  provided that any amount withdrawn for a non-qualifying purpose shall be
    23  included  in  the  entire net income for the tax year in which the with-
    24  drawal was made.
    25    § 3. Subsection (c) of section 612 of the tax law is amended by adding
    26  a new paragraph 43 to read as follows:
    27    (43) any amount deposited into a small business  tax-deferred  savings
    28  account  created   pursuant to section one hundred thirty-eight-a of the
    29  economic development law, and any  interest  earned  on  such  deposits,
    30  provided that any amount withdrawn for a non-qualifying purpose shall be
    31  included  in  the  entire net income for the tax year in which the with-
    32  drawal was made.
    33    § 4. The department of taxation and finance, in consultation with  the
    34  department of economic development, shall review and analyze all statis-
    35  tical  data  available for such purposes of determining the economic and
    36  revenue impact associated with this act. Such data shall be included  in
    37  an  annual  report  that  shall also include, but not be limited to, the
    38  number of small business taxpayers utilizing this program,  the  average
    39  aggregate amount on deposit, the qualifying expenses claimed, any quali-
    40  fying  expenses  deemed  inappropriate  and  any  other such data deemed
    41  necessary and appropriate by the department. Such annual report shall be
    42  posted on the websites of the department of taxation and finance and the
    43  department of economic development, and transmitted to the governor, the
    44  temporary president of the  senate,  the  senate  minority  leader,  the
    45  speaker of the assembly and the assembly minority leader.
    46    §  5. Rules and regulations. The department of taxation and finance in
    47  consultation with the department  of  economic  development,  is  hereby
    48  authorized  to  promulgate  rules and regulations in accordance with the
    49  state administrative procedure act that are  necessary  to  fulfill  the
    50  purposes  of this act. Such regulations shall include but not be limited
    51  to deadlines for establishing a  small  business  tax  deferred  savings
    52  account,  standard  procedures  and forms to be utilized in the program,
    53  and any other such regulations deemed  necessary  to  promote  the  full
    54  utilization  of  this  program.  Such  rules  and  regulations  shall be
    55  completed within 180 days after the effective date of this act.
    56    § 6. This act shall take effect immediately.