Bill Would Allow Small Businesses to Create Tax Deferred Savings Accounts For Job Creation
Senator Jack M. Martins (R-Mineola), Chairman of the Senate’s Commerce, Economic Development, and Small Business Committee, announced that legislation to help businesses create jobs has been passed by the New York State Senate.
“Small businesses are the number one economic employer on Long Island. Our economy depends on them being successful. Making it easier for them to save money which can be reinvested into job creation and business development will help put people back to work and ensure that our economy continues to move in the right direction,” said Senator Martins.
The legislation (S6717A) would allow small businesses with up to 50 employees to create a tax deferred savings account. The accounts would be similar to existing individual retirement accounts. Small businesses would be able to deposit funds into the account tax free, which could only be withdrawn specifically for the purpose of creating or retaining full-time jobs.
Providing a potential tax benefit for small business to set aside these funds will give them another incentive to create jobs and grow their operations. Additionally, in the event of a economic downturn or a catastrophic event, businesses would able to make ends meet without having to lay off employees.
“At a time when small businesses on Main Street struggle to access credit, this legislation will help bring private investment and jobs to our downtowns. Kudos to Senator Martins and the New York State Senate for creating a financing tool to help local business,” said Eric Alexander, Director of Vision Long Island.
“Senator Martins’ small business savings account bill is the new economic engine to allow business owners the ability to reinvest in their future growth,” said Richard M. Bivone, Nassau County Chairman of the Long Island Business Coalition.
“A business minded government helping small businesses grow and strengthen the foundation of our economy. Thank you Senator Martins for your leadership in the Senate and here at home in your district,” said Bob Fonti, Suffolk County Chairman of the Long Island Business Council.
“ For the first time in our nation’s history, we have a bill that creates a direct and effective mechanism to provide financial help to small businesses when and where this help is needed the most. The New York State Senators did a great job showing New Yorkers that they care about small businesses and the millions of people who are employed by them,” said Nathalia Rogers, Director of the American Communities Institute at Dowling College.
“This small business savings account bill will help create and/or preserve good full time jobs and strengthen our economy,” said John Durso, President of the Long Island Federation of Labor.