Bill Text: NY S00859 | 2019-2020 | General Assembly | Introduced

New York Senate Bill 859 (Prior Session Legislation)

Introduced

Bill Title: Relates to authorizing small business tax-deferred savings accounts for the purpose of improving facilities of such business and for procurement of machinery or equipment.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2020-01-08 - REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS [S00859 Detail]

Download: New_York-2019-S00859-Introduced.html

                STATE OF NEW YORK
        ________________________________________________________________________
                                           859
                               2019-2020 Regular Sessions
                    IN SENATE
                                     January 9, 2019
                                       ___________
        Introduced  by Sen. GALLIVAN -- 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 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:
     1    Section 1. Paragraph (a) of subdivision 9 of section 208  of  the  tax
     2  law is amended by adding a new subparagraph 20 to read as follows:
     3    (20)  any  deposit  made by a small business as defined in section one
     4  hundred thirty-one of the economic development law into a small business
     5  tax-deferred savings account maintained by  a  banking  organization  as
     6  defined  in  subdivision  eleven  of  section two of the banking law and
     7  established for the purposes of improving the facilities of  such  busi-
     8  ness or for procurement of machinery or equipment or any interest earned
     9  on any small business tax-deferred savings account.
    10    §  2. Subdivision 9 of section 208 of the tax law is amended by adding
    11  a new paragraph (c-4) to read as follows:
    12    (c-4) Entire net income shall  include  any  withdrawal  exclusive  of
    13  interest  income  made  by  a  small  business as defined in section one
    14  hundred thirty-one of the economic development law from a small business
    15  tax-deferred savings account maintained by  a  banking  organization  as
    16  defined  in  subdivision  eleven  of  section two of the banking law and
    17  established for the purposes of improving the facilities of  such  busi-
    18  ness  or for procurement of machinery or equipment and an additional ten
    19  percent of any withdrawals exclusive of interest income from  the  small
    20  business tax-deferred savings account not used for improving the facili-
    21  ties of such business or for procurement of machinery or equipment.
    22    § 3. Subsection (b) of section 612 of the tax law is amended by adding
    23  a new paragraph 43 to read as follows:
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD02812-01-9

        S. 859                              2
     1    (43) Any withdrawal exclusive of interest income made by a small busi-
     2  ness as defined in section one hundred thirty-one of the economic devel-
     3  opment law from a small business tax-deferred savings account maintained
     4  by  a  banking  organization as defined in subdivision eleven of section
     5  two of the banking law and established for the purposes of improving the
     6  facilities of such business or for procurement of machinery or equipment
     7  and  an  additional ten percent of any withdrawals exclusive of interest
     8  income from the small business tax-deferred savings account not used for
     9  improving the facilities of such business or for procurement of  machin-
    10  ery or equipment.
    11    § 4. Subsection (c) of section 612 of the tax law is amended by adding
    12  a new paragraph 44 to read as follows:
    13    (44)  Any  deposit  made by a small business as defined in section one
    14  hundred thirty-one of the economic development law into a small business
    15  tax-deferred savings account maintained by  a  banking  organization  as
    16  defined  in  subdivision  eleven  of  section two of the banking law and
    17  established for the purposes of improving the facilities of  such  busi-
    18  ness or for procurement of machinery or equipment or any interest earned
    19  on any small business tax-deferred savings account.
    20    § 5. This act shall take effect immediately and shall apply to taxable
    21  years beginning on or after January 1, 2020.