S T A T E O F N E W Y O R K
________________________________________________________________________
8171
2025-2026 Regular Sessions
I N S E N A T E
May 16, 2025
___________
Introduced by Sen. BASKIN -- 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, in relation to establish-
ing the contract New York program; and to amend the tax law, in
relation to establishing the contract New York tax credit
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
article 29 to read as follows:
ARTICLE 29
CONTRACT NEW YORK PROGRAM
SECTION 508. DEFINITIONS.
509. CONTRACT NEW YORK PROGRAM.
510. CONTRACT NEW YORK REGISTRY.
511. CONTRACT NEW YORK TAX CREDIT.
§ 508. DEFINITIONS. FOR THE PURPOSES OF THIS ARTICLE, THE FOLLOWING
TERMS SHALL HAVE THE FOLLOWING MEANINGS:
1. "EMERGING MICROBUSINESS" SHALL MEAN A BUSINESS WHICH EMPLOYS FEWER
THAN FIVE PERSONS, IS AUTHORIZED TO DO BUSINESS IN THIS STATE, IS INDE-
PENDENTLY OWNED AND OPERATED, IS NOT DOMINANT IN ITS FIELD, IS OWNED BY
UNITED STATES CITIZENS OR PERMANENT RESIDENT NONCITIZENS, HAS AT LEAST
FIFTY-ONE PERCENT OWNERSHIP BY SOCIALLY AND ECONOMICALLY DISADVANTAGED
INDIVIDUALS AND IS SUBJECT TO A PHYSICAL SITE INSPECTION TO VERIFY SUCH
FIFTY-ONE PERCENT SOCIALLY AND ECONOMICALLY DISADVANTAGED OWNERSHIP
REQUIREMENT, AND THE DISADVANTAGED OWNERSHIP INTEREST OF WHICH IS REAL,
SUBSTANTIAL AND CONTINUING AND HAS AND EXERCISES THE AUTHORITY TO
CONTROL INDEPENDENTLY THE DAY-TO-DAY BUSINESS DECISIONS OF SUCH MICRO-
BUSINESS.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD13088-01-5
S. 8171 2
2. "ELIGIBLE CONTRACT" SHALL MEAN A CONTRACT BETWEEN A CORPORATION AND
AN EMERGING MICROBUSINESS VALUED BETWEEN TWENTY-FIVE AND ONE HUNDRED
THOUSAND DOLLARS.
§ 509. CONTRACT NEW YORK PROGRAM. THERE IS HEREBY ESTABLISHED WITHIN
THE DEPARTMENT A CONTRACT NEW YORK PROGRAM TO PROVIDE TAX CREDITS TO
CORPORATIONS CONTRACTING WITH EMERGING MICROBUSINESSES.
§ 510. CONTRACT NEW YORK REGISTRY. 1. THE DEPARTMENT AND THE EMPIRE
STATE DEVELOPMENT CORPORATION SHALL CREATE AND MAINTAIN A REGISTRY OF
EMERGING MICROBUSINESSES, WHICH SHALL BE PUBLICLY ACCESSIBLE AND SHALL
CONTAIN INFORMATION ABOUT SUCH EMERGING MICROBUSINESSES INCLUDING, BUT
NOT LIMITED TO, AN EMERGING MICROBUSINESS'S:
(I) OPERATIONAL REGION;
(II) NORTH AMERICAN INDUSTRY CLASSIFICATION SYSTEM (NAICS) CODE; AND
(III) RANGE OF CONTRACT SIZE CAPACITY.
2. THE DEPARTMENT AND THE EMPIRE STATE DEVELOPMENT CORPORATION SHALL
BIANNUALLY IMPLEMENT BEST PRACTICES FOR ENGAGING CORPORATIONS TO UTILIZE
THE CONTRACT NEW YORK REGISTRY. SUCH BEST PRACTICES MAY INCLUDE, BUT
SHALL NOT BE LIMITED TO, RECRUITMENT, SURVEYS, AND CORPORATION AND
MICROBUSINESS MIXERS.
§ 511. CONTRACT NEW YORK TAX CREDIT. 1. A NEW YORK CORPORATION WITH AN
ELIGIBLE CONTRACT WITH AN EMERGING MICROBUSINESS ON THE CONTRACT NEW
YORK REGISTRY ESTABLISHED PURSUANT TO SECTION FIVE HUNDRED TEN OF THIS
ARTICLE MAY BE ELIGIBLE TO CLAIM A CREDIT EQUAL TO THE AMOUNT OF SUCH
CORPORATION'S PAYROLL TAX WITHHOLDINGS AS REQUIRED PURSUANT TO SECTION
SIX HUNDRED SEVENTY-ONE OF THE TAX LAW.
2. THE TAX CREDIT ESTABLISHED IN THIS SECTION SHALL BE ALLOWED AS
PRESCRIBED IN SECTION FIFTY, SECTION ONE HUNDRED EIGHTY-FIVE, SUBDIVI-
SION SIXTY-THREE OF SECTION TWO HUNDRED TEN-B AND SUBSECTION (UUU) OF
SECTION SIX HUNDRED SIX OF THE TAX LAW.
§ 2. The tax law is amended by adding a new section 50 to read as
follows:
§ 50. CONTRACT NEW YORK TAX CREDIT. (A) DEFINITIONS. AS USED IN THIS
SECTION, THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS:
(1) "EMERGING MICROBUSINESS" SHALL MEAN A BUSINESS WHICH EMPLOYS FEWER
THAN FIVE PERSONS, IS AUTHORIZED TO DO BUSINESS IN THIS STATE, IS INDE-
PENDENTLY OWNED AND OPERATED, IS NOT DOMINANT IN ITS FIELD, IS OWNED BY
UNITED STATES CITIZENS OR PERMANENT RESIDENT NONCITIZENS, HAS AT LEAST
FIFTY-ONE PERCENT OWNERSHIP BY SOCIALLY AND ECONOMICALLY DISADVANTAGED
INDIVIDUALS AND IS SUBJECT TO A PHYSICAL SITE INSPECTION TO VERIFY SUCH
FIFTY-ONE PERCENT SOCIALLY AND ECONOMICALLY DISADVANTAGED OWNERSHIP
REQUIREMENT, AND THE DISADVANTAGED OWNERSHIP INTEREST OF WHICH IS REAL,
SUBSTANTIAL AND CONTINUING AND HAS AND EXERCISES THE AUTHORITY TO
CONTROL INDEPENDENTLY THE DAY-TO-DAY BUSINESS DECISIONS OF SUCH MICRO-
BUSINESS.
(2) "ELIGIBLE CONTRACT" SHALL MEAN A CONTRACT BETWEEN A CORPORATION
AND AN EMERGING MICROBUSINESS VALUED BETWEEN TWENTY-FIVE AND ONE HUNDRED
THOUSAND DOLLARS.
(B) ALLOWANCE OF CREDIT. A TAXPAYER SUBJECT TO TAX UNDER ARTICLE
NINE-A OR TWENTY-TWO OF THIS CHAPTER SHALL BE ALLOWED A CREDIT AGAINST
SUCH TAX. THE AMOUNT OF THE CREDIT IS EQUAL TO THE AMOUNT DETERMINED
PURSUANT TO SECTION FIVE HUNDRED ELEVEN OF THE ECONOMIC DEVELOPMENT LAW.
(C) ELIGIBILITY. TO BE ELIGIBLE FOR THE CONTRACT NEW YORK TAX CREDIT,
THE TAXPAYER SHALL BE A CORPORATION WITH AN ELIGIBLE CONTRACT WITH AN
EMERGING MICROBUSINESS ON THE CONTRACT NEW YORK REGISTRY ESTABLISHED
PURSUANT TO SECTION FIVE HUNDRED TEN OF THE ECONOMIC DEVELOPMENT LAW.
S. 8171 3
§ 3. The tax law is amended by adding a new section 185 to read as
follows:
§ 185. CONTRACT NEW YORK TAX CREDIT. 1. DEFINITIONS. (A) THE TERM
"EMERGING MICROBUSINESS" MEANS A BUSINESS WHICH EMPLOYS FEWER THAN FIVE
PERSONS, IS AUTHORIZED TO DO BUSINESS IN THIS STATE, IS INDEPENDENTLY
OWNED AND OPERATED, IS NOT DOMINANT IN ITS FIELD, IS OWNED BY UNITED
STATES CITIZENS OR PERMANENT RESIDENT NONCITIZENS, HAS AT LEAST FIFTY-
ONE PERCENT OWNERSHIP BY SOCIALLY AND ECONOMICALLY DISADVANTAGED INDI-
VIDUALS AND IS SUBJECT TO A PHYSICAL SITE INSPECTION TO VERIFY SUCH
FIFTY-ONE PERCENT SOCIALLY AND ECONOMICALLY DISADVANTAGED OWNERSHIP
REQUIREMENT, AND THE DISADVANTAGED OWNERSHIP INTEREST OF WHICH IS REAL,
SUBSTANTIAL AND CONTINUING AND HAS AND EXERCISES THE AUTHORITY TO
CONTROL INDEPENDENTLY THE DAY-TO-DAY BUSINESS DECISIONS OF SUCH MICRO-
BUSINESS.
(B) "ELIGIBLE CONTRACT" SHALL MEAN A CONTRACT BETWEEN A CORPORATION
AND AN EMERGING MICROBUSINESS VALUED BETWEEN TWENTY-FIVE AND ONE HUNDRED
THOUSAND DOLLARS.
2. ALLOWANCE OF CREDIT. A TAXPAYER THAT IS A CORPORATION WITH AN
ELIGIBLE CONTRACT WITH AN EMERGING MICROBUSINESS ON THE CONTRACT NEW
YORK REGISTRY ESTABLISHED PURSUANT TO SECTION FIVE HUNDRED TEN OF THE
ECONOMIC DEVELOPMENT LAW SHALL BE ALLOWED A CREDIT, TO BE COMPUTED AS
PROVIDED IN SECTION FIFTY OF THIS CHAPTER, AGAINST THE TAX IMPOSED BY
THIS ARTICLE. SUCH CREDIT SHALL BE ALLOWED FOR THE DURATION OF THE
ELIGIBLE CONTRACT.
3. APPLICATION OF CREDIT. IN NO EVENT SHALL THE CREDIT UNDER THIS
SECTION BE ALLOWED IN AN AMOUNT WHICH WILL REDUCE THE TAX PAYABLE TO
LESS THAN THE APPLICABLE MINIMUM TAX FIXED BY SECTION ONE HUNDRED EIGHT-
Y-THREE OF THIS ARTICLE. IF, HOWEVER, THE AMOUNT OF CREDIT ALLOWABLE
UNDER THIS SECTION FOR ANY TAXABLE YEAR REDUCES THE TAX TO SUCH AMOUNT,
ANY AMOUNT OF CREDIT NOT DEDUCTIBLE IN SUCH TAXABLE YEAR SHALL BE TREAT-
ED AS AN OVERPAYMENT OF TAX TO BE 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 EIGHT-
Y-EIGHT OF THIS CHAPTER NOTWITHSTANDING, NO INTEREST SHALL BE PAID THER-
EON.
§ 4. Section 210-B of the tax law is amended by adding a new subdivi-
sion 63 to read as follows:
63. CONTRACT NEW YORK TAX CREDIT. (A) DEFINITIONS. FOR PURPOSES OF
THIS SUBDIVISION, THE FOLLOWING DEFINITIONS SHALL APPLY:
(I) "EMERGING MICROBUSINESS" SHALL MEAN A BUSINESS WHICH EMPLOYS FEWER
THAN FIVE PERSONS, IS AUTHORIZED TO DO BUSINESS IN THIS STATE, IS INDE-
PENDENTLY OWNED AND OPERATED, IS NOT DOMINANT IN ITS FIELD, IS OWNED BY
UNITED STATES CITIZENS OR PERMANENT RESIDENT NONCITIZENS, HAS AT LEAST
FIFTY-ONE PERCENT OWNERSHIP BY SOCIALLY AND ECONOMICALLY DISADVANTAGED
INDIVIDUALS AND IS SUBJECT TO A PHYSICAL SITE INSPECTION TO VERIFY SUCH
FIFTY-ONE PERCENT SOCIALLY AND ECONOMICALLY DISADVANTAGED OWNERSHIP
REQUIREMENT, AND THE DISADVANTAGED OWNERSHIP INTEREST OF WHICH IS REAL,
SUBSTANTIAL AND CONTINUING AND HAS AND EXERCISES THE AUTHORITY TO
CONTROL INDEPENDENTLY THE DAY-TO-DAY BUSINESS DECISIONS OF SUCH MICRO-
BUSINESS.
(II) "ELIGIBLE CONTRACT" SHALL MEAN A CONTRACT BETWEEN A CORPORATION
AND AN EMERGING MICROBUSINESS VALUED BETWEEN TWENTY-FIVE AND ONE HUNDRED
THOUSAND DOLLARS.
(B) ALLOWANCE OF CREDIT. A TAXPAYER THAT IS A CORPORATION WITH AN
ELIGIBLE CONTRACT WITH AN EMERGING MICROBUSINESS ON THE CONTRACT NEW
YORK REGISTRY ESTABLISHED PURSUANT TO SECTION FIVE HUNDRED TWO OF THE
S. 8171 4
ECONOMIC DEVELOPMENT LAW SHALL BE ALLOWED A CREDIT, TO BE COMPUTED AS
PROVIDED IN SECTION FIFTY OF THIS CHAPTER, AGAINST THE TAX IMPOSED BY
THIS ARTICLE. SUCH CREDIT SHALL BE ALLOWED FOR THE DURATION OF THE
ELIGIBLE CONTRACT.
(C) APPLICATION OF CREDIT. THE CREDIT ALLOWED UNDER THIS SUBDIVISION
FOR ANY TAXABLE YEAR SHALL NOT REDUCE THE TAX DUE FOR SUCH YEAR TO LESS
THAN THE FIXED DOLLAR MINIMUM AMOUNT PRESCRIBED IN PARAGRAPH (D) OF
SUBDIVISION ONE OF SECTION TWO HUNDRED TEN OF THIS ARTICLE. HOWEVER, IF
THE AMOUNT OF CREDITS ALLOWED UNDER THIS SUBDIVISION FOR ANY 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.
§ 5. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
of the tax law is amended by adding a new clause (lii) to read as
follows:
(LII) CONTRACT NEW YORK TAX AMOUNT OF CREDIT UNDER SUBDIVISION
CREDIT UNDER SUBSECTION (UUU) SIXTY-THREE OF SECTION TWO HUNDRED
TEN-B
§ 6. Section 606 of the tax law is amended by adding a new subsection
(uuu) to read as follows:
(UUU) CONTRACT NEW YORK TAX CREDIT. (1) DEFINITIONS. FOR THE PURPOSES
OF THIS SUBSECTION, THE FOLLOWING DEFINITIONS SHALL APPLY:
(A) "EMERGING MICROBUSINESS" SHALL MEAN A BUSINESS WHICH EMPLOYS FEWER
THAN FIVE PERSONS, IS AUTHORIZED TO DO BUSINESS IN THIS STATE, IS INDE-
PENDENTLY OWNED AND OPERATED, IS NOT DOMINANT IN ITS FIELD, IS OWNED BY
UNITED STATES CITIZENS OR PERMANENT RESIDENT NONCITIZENS, HAS AT LEAST
FIFTY-ONE PERCENT OWNERSHIP BY SOCIALLY AND ECONOMICALLY DISADVANTAGED
INDIVIDUALS AND IS SUBJECT TO A PHYSICAL SITE INSPECTION TO VERIFY SUCH
FIFTY-ONE PERCENT SOCIALLY AND ECONOMICALLY DISADVANTAGED OWNERSHIP
REQUIREMENT, AND THE DISADVANTAGED OWNERSHIP INTEREST OF WHICH IS REAL,
SUBSTANTIAL AND CONTINUING AND HAS AND EXERCISES THE AUTHORITY TO
CONTROL INDEPENDENTLY THE DAY-TO-DAY BUSINESS DECISIONS OF SUCH MICRO-
BUSINESS.
(B) "ELIGIBLE CONTRACT" SHALL MEAN A CONTRACT BETWEEN A CORPORATION
AND AN EMERGING MICROBUSINESS VALUED BETWEEN TWENTY-FIVE AND ONE HUNDRED
THOUSAND DOLLARS.
(2) ALLOWANCE OF CREDIT. A TAXPAYER THAT IS A CORPORATION WITH AN
ELIGIBLE CONTRACT WITH AN EMERGING MICROBUSINESS ON THE CONTRACT NEW
YORK REGISTRY ESTABLISHED PURSUANT TO SECTION FIVE HUNDRED TEN OF THE
ECONOMIC DEVELOPMENT LAW SHALL BE ALLOWED A CREDIT, TO BE COMPUTED AS
PROVIDED IN SECTION FIFTY OF THIS CHAPTER, AGAINST THE TAX IMPOSED BY
THIS ARTICLE. SUCH CREDIT SHALL BE ALLOWED FOR THE DURATION OF THE
ELIGIBLE CONTRACT.
(3) APPLICATION OF CREDIT. IF THE AMOUNT OF THE CREDIT ALLOWED UNDER
THIS SUBSECTION FOR THE TAXABLE YEAR EXCEEDS THE TAXPAYER'S TAX FOR SUCH
YEAR, THE EXCESS SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDIT-
ED OR REFUNDED IN ACCORDANCE WITH THE PROVISIONS OF SECTION SIX HUNDRED
EIGHTY-SIX OF THIS ARTICLE, PROVIDED, HOWEVER, THAT NO INTEREST WILL BE
PAID THEREON.
§ 7. This act shall take effect immediately and shall apply to taxable
years beginning on and after the first of January next succeeding the
date on which it shall have become a law.