A 4618: Establishes business franchise and personal income tax credits for capital investments made in certain small businesses.

  
  STATE OF NEW YORK ________________________________________________________________________ 4618 2025-2026 Regular Sessions  IN ASSEMBLY February 4, 2025 ___________ Introduced by M. of A. SEMPOLINSKI -- read once and referred to the Committee on Ways and Means AN ACT to amend the tax law, in relation to establishing business fran- chise and personal income tax credits for certain small businesses in a village or small city The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Section 210-B of the tax law is amended by adding a new 2 subdivision 61 to read as follows: 3 61. Small business capital tax credit. (a) A taxpayer shall be allowed 4 a credit, to be computed as provided in this subdivision, against the 5 tax imposed by this article. Such credit shall be granted to any taxpay- 6 er which is a small business when the small business is located in a 7 village or in a city with a population of less than thirty-five thousand 8 as determined by the most recent federal decennial census. The amount of 9 the credit shall be equal to twenty-five percent of the sum of qualified 10 investments in such small business, as determined by the commissioner. 11 (b) For the purposes of this subdivision, the term "small business" 12 means a business which employs less than fifteen employees. 13 (c) The credit and carryovers of such credit allowed under this subdi- 14 vision for any taxable year shall not, in the aggregate, reduce the tax 15 due for such year to less than the higher of the amounts prescribed in 16 paragraph (d) of subdivision one of section two hundred ten of this 17 article. However, if the amount of credit or carryovers of such credit, 18 or both, allowed under this subdivision for any taxable year reduces the 19 tax to such amount, any amount of credit or carryovers of such credit 20 thus not deductible in such taxable year may be carried over to the 21 following year or years and may be deducted from the tax for such year 22 or years. EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD07508-01-5 
 A. 4618 2 1 § 2. Subparagraph (B) of paragraph 1 of subsection (i) of section 606 2 of the tax law is amended by adding a new clause (lii) to read as 3 follows: 4 (lii) Small business Amount of credit under 5 capital tax credit subdivision sixty-one of 6 under subsection (qqq) section two hundred ten-B 7 § 3. Section 606 of the tax law is amended by adding a new subsection 8 (qqq) to read as follows: 9 (qqq) Small business capital tax credit. (1) A taxpayer shall be 10 allowed a credit, to be computed as provided in this subsection, against 11 the tax imposed by this article. Such credit shall be granted to any 12 taxpayer which is a small business when the small business is located in 13 a village or in a city with a population of less than thirty-five thou- 14 sand as determined by the most recent federal decennial census. The 15 amount of the credit shall be equal to twenty-five percent of the sum of 16 qualified investments in such small business, as determined by the 17 commissioner. 18 (2) For the purposes of this subsection, the term "small business" 19 means a business which employs less than fifteen employees. 20 (3) The credit and carryovers of such credit allowed under this 21 subsection for any taxable year shall not, in the aggregate, reduce the 22 tax due for such year to be less than the higher of the amounts 23 prescribed in paragraph (d) of subdivision one of section two hundred 24 ten of this chapter. However, if the amount of credit or carryovers of 25 such credit, or both, allowed under this subsection for any taxable year 26 reduces the tax to such amount, any amount of credit or carryovers of 27 such credit thus not deductible in such taxable year may be carried over 28 to the following year or years and may be deducted from the tax for such 29 year or years. 30 § 4. This act shall take effect on the first of January next succeed- 31 ing the date on which it shall have become a law and shall apply to 32 taxable years commencing on and after such date.