senate Bill S6717

Amended

Relates to authorizing small business tax-deferred savings accounts

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Bill Status


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor
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actions

  • 03 / Mar / 2014
    • REFERRED TO COMMERCE, ECONOMIC DEVELOPMENT AND SMALL BUSINESS
  • 29 / Apr / 2014
    • REPORTED AND COMMITTED TO FINANCE
  • 12 / Jun / 2014
    • AMEND (T) AND RECOMMIT TO FINANCE
  • 12 / Jun / 2014
    • PRINT NUMBER 6717A
  • 16 / Jun / 2014
    • COMMITTEE DISCHARGED AND COMMITTED TO RULES
  • 16 / Jun / 2014
    • ORDERED TO THIRD READING CAL.1401
  • 16 / Jun / 2014
    • PASSED SENATE
  • 16 / Jun / 2014
    • DELIVERED TO ASSEMBLY
  • 16 / Jun / 2014
    • REFERRED TO WAYS AND MEANS

Summary

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

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Bill Details

See Assembly Version of this Bill:
A8653
Versions:
S6717
S6717A
Legislative Cycle:
2013-2014
Current Committee:
Law Section:
Economic Development Law
Laws Affected:
Add §139, Ec Dev L; amd §§209 & 612, Tax L

Votes

Sponsor 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in such account may be withdrawn tax free only to create full time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establishes that the funds may only be withdrawn to create full time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.

view bill text
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  6717

                            I N  S E N A T E

                              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:

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD13358-02-4

S. 6717                             2

  (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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