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A02954 Summary:

BILL NOA02954
 
SAME ASSAME AS S03028
 
SPONSORSimpson
 
COSPNSRSmullen, Brabenec, Gandolfo, Giglio JM, Durso, Angelino, Gallahan, Kim, Blankenbush, Maher, DeStefano, Lemondes, Bendett, Hawley, Norris
 
MLTSPNSRGunther
 
Amd §§210-B & 606, Tax L
 
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.
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A02954 Actions:

BILL NOA02954
 
02/01/2023referred to ways and means
01/03/2024referred to ways and means
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A02954 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A2954
 
SPONSOR: Simpson
  TITLE OF BILL: 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   PURPOSE OR GENERAL IDEA OF BILL: The purpose of this bill is to incentivize venders to source New York produced goods.   SUMMARY OF PROVISIONS: Small Businesses shall qualify for an income tax credit ranging from $1000 - $5000 for the sourcing of New York produced food, beverage, or agricultural goods in an amount that meets a certain percentage of total sales.   JUSTIFICATION: New York State is host to 36,000 farms and ranks near the top nationwide as a host for Distilleries, Breweries, and Wineries. While successful in volume of participants, the competition they face for customers at home from out-of-state products is substantial due to cost pressures associ- ated with doing business in New York being higher than producers from other states or countries.The State of New York can alleviate cost pres- sures on its growers by reinforcing & investing in the New York market itself by incentivizing both existing and new would-be small businesses within the State to source these home-grown and home-made goods by offering a tax credit for an amount based on the percentage of these goods relative to their total sales.   PRIOR LEGISLATIVE HISTORY: 2021-22: A8336 held for consideration in ways and means/S7542 referred to budget and revenue   FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS: To Be Determined.   EFFECTIVE DATE: This bill shall take place immediately.
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A02954 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          2954
 
                               2023-2024 Regular Sessions
 
                   IN ASSEMBLY
 
                                    February 1, 2023
                                       ___________
 
        Introduced   by   M.   of   A.  SIMPSON,  SMULLEN,  BRABENEC,  GANDOLFO,
          J. M. GIGLIO, DURSO, ANGELINO, GALLAHAN -- read once and  referred  to
          the Committee on Ways and Means
 
        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

        A. 2954                             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:

        A. 2954                             3
 
     1  (l) Credit for small businesses       Amount of credit under
     2  that sell New York state produced     subdivision 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.
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