S T A T E O F N E W Y O R K
________________________________________________________________________
2954
2023-2024 Regular Sessions
I N A S S E M B L Y
February 1, 2023
___________
Introduced by M. of A. SIMPSON, SMULLEN, BRABENEC, GANDOLFO,
J. M. GIGLIO, DURSO, ANGELINO, GALLAHAN -- read once and referred to
the Committee on Ways and Means
AN ACT to amend the tax law, in relation to creating a tax credit for
small businesses that sell a certain percentage of products produced
in New York state
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Section 210-B of the tax law is amended by adding a new
subdivision 59 to read as follows:
59. CREDIT FOR SMALL BUSINESSES THAT SELL NEW YORK STATE PRODUCED
PRODUCTS. (A) A SMALL BUSINESS SHALL BE ALLOWED A CREDIT AGAINST THE TAX
IMPOSED BY THIS ARTICLE IF SUCH SMALL BUSINESS SELLS A CERTAIN PERCENT-
AGE OF QUALIFIED PRODUCTS. SUCH CREDIT SHALL BE COMPUTED ACCORDING TO
THE FOLLOWING SCHEDULE:
(I) CREDIT OF ONE THOUSAND DOLLARS WHEN FIVE TO NINE PERCENT OF A
QUALIFYING SMALL BUSINESS' TOTAL SALES ARE ATTRIBUTED TO THE SALE OF
QUALIFYING PRODUCTS.
(II) CREDIT OF TWO THOUSAND DOLLARS WHEN TEN TO TWENTY-FOUR PERCENT OF
A QUALIFYING SMALL BUSINESS' TOTAL SALES ARE ATTRIBUTED TO THE SALE OF
QUALIFYING PRODUCTS.
(III) CREDIT OF FIVE THOUSAND DOLLARS WHEN TWENTY-FIVE PERCENT OR MORE
OF A QUALIFYING SMALL BUSINESS' TOTAL SALES ARE ATTRIBUTED TO THE SALE
OF QUALIFYING PRODUCTS.
(B) FOR THE PURPOSES OF THIS SUBDIVISION, THE TERM:
(I) "SMALL BUSINESS" SHALL MEAN A BUSINESS WHICH IS AN INDEPENDENTLY
OR PRIVATELY-OWNED CAFE, RESTAURANT, EATERY, BAR, PUB, BREWERY, DISTIL-
LERY, ORCHARD, FOOD TRUCK, RETAIL STORE, FARM STAND, HOTEL, OR MOTEL.
(II) "QUALIFIED PRODUCT" SHALL MEAN A PRODUCT WHICH IS GROWN, BREWED
OR DISTILLED IN NEW YORK STATE AND SUCH PRODUCTS SHALL INCLUDE:
(A) BEER, WINE, SPIRITS, AND CIDERS;
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD06721-01-3
A. 2954 2
(B) AGRICULTURAL INGREDIENTS, INCLUDING BUT NOT LIMITED TO WHEAT,
BARLEY, HOPS, APPLES, PUMPKINS, CORN, CABBAGE, BERRIES, SOYBEANS, MAPLE,
OR ANY ITEM USED FOR MENU ITEMS;
(C) DAIRY PRODUCTS, INCLUDING BUT NOT LIMITED TO MILK, CREAM, BUTTER,
AND CHEESE; OR
(D) MEAT PRODUCTS, INCLUDING BUT NOT LIMITED TO BEEF, CHICKEN, AND
PORK.
(C) THE CREDIT ALLOWED UNDER THIS SUBDIVISION FOR THE TAXABLE YEAR
SHALL NOT REDUCE THE TAX DUE FOR SUCH YEAR TO LESS THAN THE AMOUNT
PRESCRIBED IN PARAGRAPH (D) OF SUBDIVISION ONE OF SECTION TWO HUNDRED
TEN OF THIS ARTICLE. HOWEVER, IF THE AMOUNT OF CREDIT ALLOWED UNDER THIS
SUBDIVISION FOR THE TAXABLE YEAR REDUCES THE TAX TO SUCH AMOUNT OR IF
THE TAXPAYER OTHERWISE PAYS TAX BASED ON THE FIXED DOLLAR MINIMUM
AMOUNT, ANY AMOUNT OF CREDIT THUS NOT DEDUCTIBLE IN SUCH TAXABLE YEAR
SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED OR REFUNDED IN
ACCORDANCE WITH THE PROVISIONS OF SECTION ONE THOUSAND EIGHTY-SIX OF
THIS CHAPTER. PROVIDED, HOWEVER, THE PROVISIONS OF SUBSECTION (C) OF
SECTION ONE THOUSAND EIGHTY-EIGHT OF THIS CHAPTER NOTWITHSTANDING, NO
INTEREST SHALL BE PAID THEREON.
§ 2. Section 606 of the tax law is amended by adding a new subsection
(ooo) to read as follows:
(OOO) CREDIT FOR SMALL BUSINESSES THAT SELL NEW YORK STATE PRODUCED
PRODUCTS. (1) A SMALL BUSINESS SHALL BE ALLOWED A CREDIT AGAINST THE TAX
IMPOSED BY THIS ARTICLE IF SUCH SMALL BUSINESS SELLS A CERTAIN PERCENT-
AGE OF QUALIFIED PRODUCTS. SUCH CREDIT SHALL BE COMPUTED ACCORDING TO
THE FOLLOWING SCHEDULE:
(A) CREDIT OF ONE THOUSAND DOLLARS WHEN FIVE TO NINE PERCENT OF A
QUALIFYING SMALL BUSINESS' TOTAL SALES ARE ATTRIBUTED TO THE SALE OF
QUALIFYING PRODUCTS.
(B) CREDIT OF TWO THOUSAND DOLLARS WHEN TEN TO TWENTY-FOUR PERCENT OF
A QUALIFYING SMALL BUSINESS' TOTAL SALES ARE ATTRIBUTED TO THE SALE OF
QUALIFYING PRODUCTS.
(C) CREDIT OF FIVE THOUSAND DOLLARS WHEN TWENTY-FIVE PERCENT OR MORE
OF A QUALIFYING SMALL BUSINESS' TOTAL SALES ARE ATTRIBUTED TO THE SALE
OF QUALIFYING PRODUCTS.
(2) FOR THE PURPOSES OF THIS SUBSECTION, THE TERM:
(A) "SMALL BUSINESS" SHALL MEAN A BUSINESS WHICH IS AN INDEPENDENTLY
OR PRIVATELY-OWNED CAFE, RESTAURANT, EATERY, BAR, PUB, BREWERY, DISTIL-
LERY, ORCHARD, FOOD TRUCK, RETAIL STORE, FARM STAND, HOTEL, OR MOTEL.
(B) "QUALIFIED PRODUCT" SHALL MEAN A PRODUCT WHICH IS GROWN, BREWED OR
DISTILLED IN NEW YORK STATE AND SUCH PRODUCTS SHALL INCLUDE:
(I) BEER, WINE, SPIRITS, AND CIDERS;
(II) AGRICULTURAL INGREDIENTS, INCLUDING BUT NOT LIMITED TO WHEAT,
BARLEY, HOPS, APPLES, PUMPKINS, CORN, CABBAGE, BERRIES, SOYBEANS, MAPLE,
OR ANY ITEM USED FOR MENU ITEMS;
(III) DAIRY PRODUCTS, INCLUDING BUT NOT LIMITED TO MILK, CREAM,
BUTTER, AND CHEESE; OR
(IV) MEAT PRODUCTS, INCLUDING BUT NOT LIMITED TO BEEF, CHICKEN, AND
PORK.
(3) IF THE AMOUNT OF THE CREDIT ALLOWED UNDER THIS SUBSECTION FOR ANY
TAXABLE YEAR SHALL EXCEED THE TAXPAYER'S TAX FOR SUCH YEAR, THE EXCESS
SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED OR REFUNDED IN
ACCORDANCE WITH THE PROVISIONS OF SECTION SIX HUNDRED EIGHTY-SIX OF THIS
ARTICLE, PROVIDED, HOWEVER, THAT NO INTEREST SHALL BE PAID THEREON.
§ 3. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
of the tax law is amended by adding a new clause (l) to read as follows:
A. 2954 3
(L) CREDIT FOR SMALL BUSINESSES AMOUNT OF CREDIT UNDER
THAT SELL NEW YORK STATE PRODUCED SUBDIVISION FIFTY-NINE OF
PRODUCTS UNDER SUBSECTION (OOO) SECTION TWO HUNDRED TEN-B
§ 4. This act shall take effect immediately and shall apply to taxable
years beginning on or after January 1, 2024.