NY State Senate Bill 2025-S7838

Current Bill Status - In Senate Committee Investigations And Government Operations Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
May 09, 2025	referred to investigations and government operations

2025-S7838 (ACTIVE) - Details

See Assembly Version of this Bill:: A8233
Current Committee:: Senate Investigations And Government Operations
Law Section:: Tax Law
Laws Affected:: Add §496-f, Tax L

2025-S7838 (ACTIVE) - Summary

Establishes a cannabis processor tax credit; authorizes a tax credit that is the equivalent to the licensed processor's cannabis potency tax liability for the year two thousand twenty-three, multiplied by three, but shall not exceed four hundred thousand dollars.

2025-S7838 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S7838

SPONSOR: RYAN C
 
TITLE OF BILL:

An act to amend the tax law, in relation to establishing a cannabis
processor tax credit

 
PURPOSE: OF THE BILL:

To create a one-time refundable tax credit for adult-use conditional
cannabis processors who incurred significant tax burdens during the
market's initial rollout.

 
SUMMARY OF SPECIFIC PROVISIONS::

Section 1 adds a new section 496-f to the tax law, establishing the
cannabis processor tax credit:

- Subdivision (a) defines key terms, including: "Licensed proces-
sor","Licensed retailer" and "Cannabis potency tax"

- Subdivision (b) authorizes a one-time refundable tax credit for eligi-
ble licensed processors against their prior cannabis potency tax liabil-
ity.

- Subdivision (c) outlines the calculation and conditions of the credit:
The credit equals three times the processor's 2023 cannabis potency tax
liability, not to exceed $400,000 per taxpayer.  Processors must have
filed returns showing the 2023 tax paid to qualify. Any outstanding
cannabis potency tax owed will be deducted from the total credit
awarded.

Section 2 provides that the act takes effect immediately and applies to
taxable years beginning on or after January 1, 2025.

 
JUSTIFICATION::

New York's conditional adult-use cannabis processors have been central
to launching the legal cannabis market under challenging conditions.
These businesses made substantial capital investments, operated under
evolving regulations, and faced market instability, all while carrying a
disproportionate tax burden from the now-repealed potency tax. While the
repeal of the potency tax was a critical step forward, the financial
strain caused by its implementation continues to affect these operators.
This bill provides targeted relief by offering a one-time tax credit to
qualifying processors, allowing them to recover, reinvest in their
facilities, and create jobs in their communities. The credit is struc-
tured to reward compliance and actual tax payments made in 2023, ensur-
ing fairness and fiscal responsibility.

 
PRIOR LEGISLATIVE HISTORY::

New Bill

 
FISCAL IMPLICATIONS::

TBD.

 
EFFECTIVE DAVE:

This act shall take effect immediately and shall apply to taxable years
beginning on or after January 1, 2025.

2025-S7838 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7838
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                                May 9, 2025
                                ___________
 
 Introduced  by  Sen. C. RYAN -- read twice and ordered printed, and when
   printed to be committed to the Committee on Investigations and Govern-
   ment Operations
 
 AN ACT to amend the tax law, in  relation  to  establishing  a  cannabis
   processor tax credit
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. The tax law is amended by adding a  new  section  496-f  to
 read as follows:
   §  496-F. CANNABIS PROCESSOR CREDIT. (A) DEFINITIONS. FOR THE PURPOSES
 OF THIS SECTION, THE FOLLOWING DEFINITIONS SHALL APPLY:
   (1) "LICENSED PROCESSOR" SHALL MEAN A TAXPAYER SUBJECT  TO  TAX  UNDER
 ARTICLE  NINE-A OR TWENTY-TWO OF THIS CHAPTER, THAT IS REGISTERED PURSU-
 ANT TO THIS ARTICLE, AND THAT PRODUCED CONCENTRATED CANNABIS OR CANNABIS
 EDIBLE PRODUCTS SOLD TO AT LEAST ONE LICENSED RETAILER  DURING  CALENDAR
 YEAR TWO THOUSAND TWENTY-THREE;
   (2)  "LICENSED  RETAILER,"  SHALL  HAVE  THE  SAME MEANING AS THE TERM
 "RETAILER" AS DEFINED IN SECTION THREE OF THE CANNABIS LAW; AND
   (3) "CANNABIS POTENCY TAX" SHALL MEAN THE TAX IMPOSED  BY  SUBDIVISION
 (A) OF SECTION FOUR HUNDRED NINETY-THREE OF THIS ARTICLE.
   (B)  CANNABIS  PROCESSOR  TAX  CREDIT AUTHORIZED. A LICENSED PROCESSOR
 SHALL BE ALLOWED A REFUNDABLE CREDIT AGAINST THE CANNABIS POTENCY TAX IN
 THE AMOUNT SPECIFIED IN SUBDIVISION (C) OF THIS SECTION.
   (C) CALCULATION OF TAX CREDIT.  (1)  THE  AMOUNT  OF  THE  TAX  CREDIT
 AUTHORIZED  IN  SUBDIVISION  (B)  OF  THIS SECTION PER TAXPAYER SHALL BE
 EQUIVALENT TO THE LICENSED PROCESSOR'S CANNABIS  POTENCY  TAX  LIABILITY
 FOR  THE  YEAR TWO THOUSAND TWENTY-THREE, MULTIPLIED BY THREE, BUT SHALL
 NOT EXCEED FOUR HUNDRED THOUSAND DOLLARS. IF THE LICENSED PROCESSOR IS A
 PARTNERSHIP OR NEW YORK S CORPORATION, THE AGGREGATE CREDIT  ALLOWED  TO
 ALL  PARTNERS  OR  SHAREHOLDERS  OF  SUCH  ENTITY  SHALL NOT EXCEED FOUR
 HUNDRED THOUSAND DOLLARS.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD11880-01-5

 S. 7838                             2
 
   (2) NO LICENSED PROCESSOR SHALL RECEIVE THIS  TAX  CREDIT  UNLESS  THE
 LICENSED  PROCESSOR  FILES  OR  HAS  FILED RETURNS SHOWING THE AMOUNT OF
 CANNABIS POTENCY TAX DUE IN CALENDAR YEAR TWO THOUSAND TWENTY-THREE.
   (3) ANY OUTSTANDING CANNABIS POTENCY TAX OWED BY THE LICENSED PROCESS-
 OR SHALL BE DEDUCTED FROM THE TAX CREDIT BEFORE APPLICATION OR DISBURSE-
 MENT.
   § 2. This act shall take effect immediately and shall apply to taxable
 years beginning on or after January 1, 2025.

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Senate Bill S7838

Sponsored By

Current Bill Status - In Senate Committee Investigations And Government Operations Committee

2025-S7838 (ACTIVE) - Details

2025-S7838 (ACTIVE) - Summary

2025-S7838 (ACTIVE) - Sponsor Memo

2025-S7838 (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S7838

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Sponsored By

Christopher J. Ryan

Current Bill Status - In Senate Committee Investigations And Government Operations Committee

2025-S7838 (ACTIVE) - Details

2025-S7838 (ACTIVE) - Summary

2025-S7838 (ACTIVE) - Sponsor Memo

2025-S7838 (ACTIVE) - Bill Text download pdf

Comments