NY A07991

Authorizes small businesses in New York to establish tax-deferred savings accounts with licensed financial organizations, allowing deposits and withdrawals for qualifying business purposes

Deposits and interest earned are excluded from taxable income, with a maximum annual deposit limit of $5,000 per taxable year

Qualifying purposes include expenditures for tangible property used in business operations (including buildings) and other expenditures that improve competitiveness, productivity, and result in job creation or retention

Withdrawals for non-qualifying purposes must be included in taxable income for the year the withdrawal is made

Department of Economic Development and Department of Taxation and Finance must submit annual reports starting April 1, 2027, detailing program participation, aggregate deposits, and withdrawal data