NY A03625

Authorizes small businesses to establish and deposit profits into tax-deferred savings accounts, with tax-free withdrawals permitted only when the Commissioner of Labor declares an economic downturn.

Withdrawals from these accounts made when no economic downturn has been declared are taxable as income under New York tax law.

Exempts small businesses from all taxes on withdrawals from tax-deferred savings accounts made during a declared economic downturn, effective for taxable years beginning January 1, 2014.

Requires the Commissioner of Labor to calculate and publish a composite index of business cycle indicators by the 15th of each month using New York state employment, manufacturing hours, unemployment, and sales tax data, with an economic downturn declared when the index declines for five consecutive months.