Bill S6717A-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

  • Jun 16, 2014: referred to ways and means
  • Jun 16, 2014: DELIVERED TO ASSEMBLY
  • Jun 16, 2014: PASSED SENATE
  • Jun 16, 2014: ORDERED TO THIRD READING CAL.1401
  • Jun 16, 2014: COMMITTEE DISCHARGED AND COMMITTED TO RULES
  • Jun 12, 2014: PRINT NUMBER 6717A
  • Jun 12, 2014: AMEND (T) AND RECOMMIT TO FINANCE
  • Apr 29, 2014: REPORTED AND COMMITTED TO FINANCE
  • Mar 3, 2014: REFERRED TO COMMERCE, ECONOMIC DEVELOPMENT AND SMALL BUSINESS

Meetings

Calendars

Votes

VOTE: COMMITTEE VOTE: - Rules - Jun 16, 2014
Ayes (22): Skelos, Libous, Bonacic, Carlucci, Farley, Flanagan, Hannon, Larkin, LaValle, Marcellino, Maziarz, Nozzolio, Seward, Valesky, Little, Stewart-Cousins, Breslin, Dilan, Montgomery, Parker, Perkins, Gianaris
Ayes W/R (1): Krueger
Excused (2): Hassell-Thompson, Espaillat

Memo

BILL NUMBER:S6717A

TITLE OF BILL: An act to amend 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 The monies in such account may be withdrawn tax free only to create full time jobs.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 section 208 of the tax law to create the small business tax-deferred savings account and establishes that the funds may only be withdrawn to create or preserve full time jobs.

Section 2 amends section 208 of the tax law by adding a new subdivision 22 to create the tax exemption associated with the small business savings account.

Section 3 amends subsection (b) of section 612 of the tax law by adding a new paragraph 42 to allow for withdrawals by small businesses from such accounts.

Section 4 amends subsection (c) of section 612 of the tax law, and establishes that the funds may only be withdrawn to create or preserve full time jobs.

Section 5 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, and apply to taxable years beginning on or after January 1, 2015.


Text

STATE OF NEW YORK ________________________________________________________________________ 6717--A IN SENATE March 3, 2014 ___________
Introduced by Sens. MARTINS, BOYLE, CARLUCCI -- read twice and ordered printed, and when printed to be committed to the Committee on Commerce, Economic Development and Small Business -- reported favora- bly from said committee and committed to the Committee on Finance -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee AN ACT to amend 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. Paragraph (a) of subdivision 9 of section 208 of the tax law is amended by adding a new subparagraph 20 to read as follows: (20) ANY DEPOSIT MADE BY A SMALL BUSINESS AS DEFINED IN SECTION ONE HUNDRED THIRTY-ONE OF THE ECONOMIC DEVELOPMENT LAW INTO A SMALL BUSINESS TAX-DEFERRED SAVINGS ACCOUNT MAINTAINED BY A BANKING ORGANIZATION AS DEFINED IN SUBDIVISION ELEVEN OF SECTION TWO OF THE BANKING LAW AND ESTABLISHED FOR THE PURPOSES OF CREATING OR PRESERVING FULL TIME JOBS. S 2. Paragraph (b) of subdivision 9 of section 208 of the tax law is amended by adding a new subparagraph 22 to read as follows: (22) ANY WITHDRAWAL EXCLUSIVE OF INTEREST INCOME MADE BY A SMALL BUSI- NESS AS DEFINED IN SECTION ONE HUNDRED THIRTY-ONE OF THE ECONOMIC DEVEL- OPMENT LAW FROM A SMALL BUSINESS TAX-DEFERRED SAVINGS ACCOUNT MAINTAINED BY A BANKING ORGANIZATION AS DEFINED IN SUBDIVISION ELEVEN OF SECTION TWO OF THE BANKING LAW AND ESTABLISHED FOR THE PURPOSES OF CREATING OR PRESERVING FULL TIME JOBS. S 3. Subsection (b) of section 612 of the tax law is amended by adding a new paragraph 42 to read as follows: (42) ANY WITHDRAWAL EXCLUSIVE OF INTEREST INCOME MADE BY A SMALL BUSI- NESS AS DEFINED IN SECTION ONE HUNDRED THIRTY-ONE OF THE ECONOMIC DEVEL- OPMENT LAW FROM A SMALL BUSINESS TAX-DEFERRED SAVINGS ACCOUNT MAINTAINED BY A BANKING ORGANIZATION AS DEFINED IN SUBDIVISION ELEVEN OF SECTION TWO OF THE BANKING LAW AND ESTABLISHED FOR THE PURPOSES OF CREATING OR PRESERVING FULL TIME JOBS.
S 4. Subsection (c) of section 612 of the tax law is amended by adding a new subparagraph 42 to read as follows: (42) ANY DEPOSIT MADE BY A SMALL BUSINESS AS DEFINED IN SECTION ONE HUNDRED THIRTY-ONE OF THE ECONOMIC DEVELOPMENT LAW INTO A SMALL BUSINESS TAX-DEFERRED SAVINGS ACCOUNT MAINTAINED BY A BANKING ORGANIZATION AS DEFINED IN SUBDIVISION ELEVEN OF SECTION TWO OF THE BANKING LAW AND ESTABLISHED FOR THE PURPOSES OF CREATING OR PRESERVING FULL TIME JOBS. S 5. This act shall take effect immediately and shall apply to taxable years beginning on or after January 1, 2015.

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