New York A07991 authorizes small business tax-deferred savings accounts.

New York A07991 amends the economic development law and the tax law to authorize small businesses to establish tax-deferred savings accounts with financial organizations. Deposits and interest are tax-deferred unless withdrawn for non-qualifying purposes, which are then taxed. Qualifying purposes include tangible property and other expenditures that improve competitiveness and productivity, leading to job creation or retention. The Department of Taxation and Finance must report annually on the program's impact and will create regulations for the accounts.

New York A07991 authorizes small business tax-deferred savings accounts.

New York A07991 amends the economic development law and the tax law to authorize small businesses to establish tax-deferred savings accounts with financial organizations. Deposits and interest are tax-deferred unless withdrawn for non-qualifying purposes, which are then taxed. Qualifying purposes include tangible property and other expenditures that improve competitiveness and productivity, leading to job creation or retention. The Department of Taxation and Finance must report annually on the program's impact and will create regulations for the accounts.