senate Bill S6717A

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:
A8653A
Versions:
S6717
S6717A
Legislative Cycle:
2013-2014
Current Committee:
Law Section:
Tax Law
Laws Affected:
Amd ยงยง208 & 612, Tax L

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in such account may be withdrawn tax free only to create full time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may only be withdrawn to create or preserve full time jobs.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establishes that the funds may only be withdrawn to create or preserve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

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

                                 6717--A

                            I N  S E N A T E

                              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.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD13358-03-4

S. 6717--A                          2

  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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