This bill has been amended

Bill S6717-2013

Relates to authorizing small business tax-deferred savings accounts

Relates to authorizing small business tax-deferred savings accounts for the purpose of investments creating or preserving jobs.

Details

Actions

  • Apr 29, 2014: REPORTED AND COMMITTED TO FINANCE
  • Mar 3, 2014: REFERRED TO COMMERCE, ECONOMIC DEVELOPMENT AND SMALL BUSINESS

Meetings

Votes

VOTE: COMMITTEE VOTE: - Commerce, Economic Development and Small Business - Apr 29, 2014
Ayes (11): Martins, Valesky, Boyle, Gallivan, Felder, Griffo, Robach, Little, Kennedy, Hassell-Thompson, O'Brien
Ayes W/R (1): Sanders

Memo

BILL NUMBER:S6717

TITLE OF BILL: 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

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 The monies in such account may be withdrawn tax free only to create full time jobs.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 economic development law by adding a new section 139 that creates the small business tax-deferred savings account and establishes that the funds may only be withdrawn to create full time jobs.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 (c) of section 612 of the tax law by adding a new paragraph 39 to modify federally adjusted gross income by subtracting any withdrawal of the account during an economic downturn.

Section 4 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: This is a new Bill

FISCAL IMPLICATIONS: To be determined

EFFECTIVE DATE: Immediately.


Text

STATE OF NEW YORK ________________________________________________________________________ 6717 IN SENATE March 3, 2014 ___________
Introduced by Sen. MARTINS -- read twice and ordered printed, and when printed to be committed to the Committee on Commerce, Economic Devel- opment and Small Business 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: Section 1. The economic development law is amended by adding a new section 139 to read as follows: S 139. SMALL BUSINESS TAX-DEFERRED SAVINGS ACCOUNTS. 1. ANY SMALL BUSINESS SHALL BE AUTHORIZED TO ESTABLISH AND DEPOSIT PROFITS INTO A SMALL BUSINESS TAX-DEFERRED SAVINGS ACCOUNT. 2. THE MONIES IN SUCH TAX-DEFERRED SAVINGS ACCOUNTS MAY BE WITHDRAWN TAX FREE WHEN THEY ARE EXPENDED FOR EXPANSION OF SUCH BUSINESS FOR THE PURPOSE OF CREATING OR PRESERVING FULL TIME JOBS. S 2. Section 209 of the tax law is amended by adding a new subdivision 12 to read as follows: 12. FOR ANY TAXABLE YEAR BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND FOURTEEN, ANY SMALL BUSINESS, AS SUCH TERM IS DEFINED PURSUANT TO SECTION ONE HUNDRED THIRTY-ONE OF THE ECONOMIC DEVELOPMENT LAW, SHALL BE EXEMPT FROM ALL TAXES IMPOSED PURSUANT TO THIS ARTICLE FOR ANY WITH- DRAWAL FROM A SMALL BUSINESS TAX-DEFERRED SAVINGS ACCOUNT ESTABLISHED PURSUANT TO SECTION ONE HUNDRED THIRTY-NINE OF THE ECONOMIC DEVELOPMENT LAW AND USED FOR THE EXPANSION OF SUCH SMALL BUSINESS FOR THE PURPOSE OF CREATING OR PRESERVING FULL TIME JOBS. IF A TAXPAYER FILES FOR AND RECEIVES AN EXEMPTION FROM THE TAX IMPOSED UNDER THIS SECTION PURSUANT TO THE PROVISIONS OF THIS SUBDIVISION AND THE FUNDS WITHDRAWN, OR ANY PORTION THEREOF, ARE NOT EXPENDED FOR A QUALIFYING PURPOSE AS SET FORTH HEREIN, THEN THE AMOUNT OF SUCH EXEMPTION CLAIMED BY THE TAXPAYER SHALL BE ADDED BACK TO TAX IN THE NEXT SUCCEEDING TAXABLE YEAR OR IN THE YEAR IN WHICH THE EXEMPTION IS DISALLOWED. S 3. Subsection (c) of section 612 of the tax law is amended by adding a new paragraph 41 to read as follows:
(41) ANY WITHDRAWAL FROM A SMALL BUSINESS TAX-DEFERRED SAVINGS ACCOUNT ESTABLISHED PURSUANT TO SECTION ONE HUNDRED THIRTY-NINE OF THE ECONOMIC DEVELOPMENT LAW AND USED FOR THE EXPANSION OF SUCH SMALL BUSINESS FOR THE PURPOSE OF CREATING OR PRESERVING FULL TIME JOBS. IF A TAXPAYER FILES FOR AND RECEIVES AN EXEMPTION FROM THE TAX IMPOSED UNDER THIS SECTION PURSUANT TO THE PROVISIONS OF THIS PARAGRAPH AND THE FUNDS WITH- DRAWN, OR ANY PORTION THEREOF, ARE NOT EXPENDED FOR A QUALIFYING PURPOSE AS SET FORTH HEREIN, THEN THE AMOUNT OF SUCH EXEMPTION CLAIMED BY THE TAXPAYER SHALL BE ADDED BACK TO TAX IN THE NEXT SUCCEEDING TAXABLE YEAR OR IN THE YEAR IN WHICH THE EXEMPTION IS DISALLOWED. S 4. This act shall take effect immediately.

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