New York Senate Bill S01865

New York 2025-2026 Regular Session

• Introduced: 1/14/25
• Refer: 1/14/25

Caption

Enacts the lift our communities advertise locally (LOCAL) program which provides a tax credit on advertising for locally owned minority-owned and women-owned business enterprises, certified service-disabled veteran-owned business enterprises or a small business.

Impact

The implementation of S01865 represents a significant amendment to New York's economic development and tax laws. This legislation would not only encourage local businesses to invest in advertising but also prevent out-of-state media from monopolizing the advertising space. The program is intended to enhance local commerce by directing business expenditure towards community media which, in turn, may support local job creation and bolster small business growth in the state. Since the benefits are targeted to specific types of businesses, it aims to foster equity within market opportunities and provide support to historically underrepresented entrepreneurs.

Summary

S01865, known as the 'Lift Our Communities Advertise Locally (LOCAL) Program', aims to provide tax incentives for advertising through local media. It introduces a tax credit designed specifically for locally owned businesses, especially those that are minority-owned, women-owned, or service-disabled veteran-owned. The program establishes that eligible businesses can receive a credit equaling 80% of qualified local media advertising expenses, with a cap of $5,000 per business annually. Each year, the total amount of tax credits issued is capped at $10 million across all eligible businesses, with specific allocations for different categories of businesses outlined in the law.

Contention

While the bill has garnered support for its intent to strengthen local businesses, some concerns have been raised regarding the implications of government support for specific business types. Critics argue that the limited scope may inadvertently create inequities among businesses not covered under the proposed tax credit program. There are also apprehensions about potential bureaucratic processes involved in certifying businesses and monitoring compliance with eligibility criteria, which could pose barriers for some small business owners.