Creates a tax credit for small businesses that sell a certain percentage of products produced in New York state; provides such small businesses include independently or privately-owned cafes, restaurants, eateries, bars, pubs, breweries, distilleries, orchards, food trucks, retail stores, farm stands, hotels, or motels.
STATE OF NEW YORK
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3028
2023-2024 Regular Sessions
IN SENATE
January 26, 2023
___________
Introduced by Sen. STEC -- read twice and ordered printed, and when
printed to be committed to the Committee on Budget and Revenue
AN ACT to amend the tax law, in relation to creating a tax credit for
small businesses that sell a certain percentage of products produced
in New York state
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 59 to read as follows:
3 59. Credit for small businesses that sell New York state produced
4 products. (a) A small business shall be allowed a credit against the tax
5 imposed by this article if such small business sells a certain percent-
6 age of qualified products. Such credit shall be computed according to
7 the following schedule:
8 (i) Credit of one thousand dollars when five to nine percent of a
9 qualifying small business' total sales are attributed to the sale of
10 qualifying products.
11 (ii) Credit of two thousand dollars when ten to twenty-four percent of
12 a qualifying small business' total sales are attributed to the sale of
13 qualifying products.
14 (iii) Credit of five thousand dollars when twenty-five percent or more
15 of a qualifying small business' total sales are attributed to the sale
16 of qualifying products.
17 (b) For the purposes of this subdivision, the term:
18 (i) "Small business" shall mean a business which is an independently
19 or privately-owned cafe, restaurant, eatery, bar, pub, brewery, distil-
20 lery, orchard, food truck, retail store, farm stand, hotel, or motel.
21 (ii) "Qualified product" shall mean a product which is grown, brewed
22 or distilled in New York state and such products shall include:
23 (A) beer, wine, spirits, and ciders;
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD06721-01-3
S. 3028 2
1 (B) agricultural ingredients, including but not limited to wheat,
2 barley, hops, apples, pumpkins, corn, cabbage, berries, soybeans, maple,
3 or any item used for menu items;
4 (C) dairy products, including but not limited to milk, cream, butter,
5 and cheese; or
6 (D) meat products, including but not limited to beef, chicken, and
7 pork.
8 (c) The credit allowed under this subdivision for the taxable year
9 shall not reduce the tax due for such year to less than the amount
10 prescribed in paragraph (d) of subdivision one of section two hundred
11 ten of this article. However, if the amount of credit allowed under this
12 subdivision for the taxable year reduces the tax to such amount or if
13 the taxpayer otherwise pays tax based on the fixed dollar minimum
14 amount, any amount of credit thus not deductible in such taxable year
15 shall be treated as an overpayment of tax to be credited or refunded in
16 accordance with the provisions of section one thousand eighty-six of
17 this chapter. Provided, however, the provisions of subsection (c) of
18 section one thousand eighty-eight of this chapter notwithstanding, no
19 interest shall be paid thereon.
20 § 2. Section 606 of the tax law is amended by adding a new subsection
21 (ooo) to read as follows:
22 (ooo) Credit for small businesses that sell New York state produced
23 products. (1) A small business shall be allowed a credit against the tax
24 imposed by this article if such small business sells a certain percent-
25 age of qualified products. Such credit shall be computed according to
26 the following schedule:
27 (A) Credit of one thousand dollars when five to nine percent of a
28 qualifying small business' total sales are attributed to the sale of
29 qualifying products.
30 (B) Credit of two thousand dollars when ten to twenty-four percent of
31 a qualifying small business' total sales are attributed to the sale of
32 qualifying products.
33 (C) Credit of five thousand dollars when twenty-five percent or more
34 of a qualifying small business' total sales are attributed to the sale
35 of qualifying products.
36 (2) For the purposes of this subsection, the term:
37 (A) "Small business" shall mean a business which is an independently
38 or privately-owned cafe, restaurant, eatery, bar, pub, brewery, distil-
39 lery, orchard, food truck, retail store, farm stand, hotel, or motel.
40 (B) "Qualified product" shall mean a product which is grown, brewed or
41 distilled in New York state and such products shall include:
42 (i) beer, wine, spirits, and ciders;
43 (ii) agricultural ingredients, including but not limited to wheat,
44 barley, hops, apples, pumpkins, corn, cabbage, berries, soybeans, maple,
45 or any item used for menu items;
46 (iii) dairy products, including but not limited to milk, cream,
47 butter, and cheese; or
48 (iv) meat products, including but not limited to beef, chicken, and
49 pork.
50 (3) If the amount of the credit allowed under this subsection for any
51 taxable year shall exceed the taxpayer's tax for such year, the excess
52 shall be treated as an overpayment of tax to be credited or refunded in
53 accordance with the provisions of section six hundred eighty-six of this
54 article, provided, however, that no interest shall be paid thereon.
55 § 3. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
56 of the tax law is amended by adding a new clause (l) to read as follows:
S. 3028 3
1 (l) Credit for small businessesAmount of credit under
2 that sell New York state producedsubdivision fifty-nine of
3 products under subsection (ooo)section two hundred ten-B
4 § 4. This act shall take effect immediately and shall apply to taxable
5 years beginning on or after January 1, 2024.
