STATE OF NEW YORK ________________________________________________________________________ 3221 2025-2026 Regular Sessions IN ASSEMBLY January 23, 2025 ___________ Introduced by M. of A. SIMPSON, SMULLEN, BRABENEC, GANDOLFO, DURSO, ANGELINO, GALLAHAN, KIM, BLANKENBUSH, MAHER, DeSTEFANO, LEMONDES, BENDETT, HAWLEY -- 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 61 to read as follows: 3 61. 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: EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD03715-01-5
A. 3221 2 1 (A) beer, wine, spirits, and ciders; 2 (B) agricultural ingredients, including but not limited to wheat, 3 barley, hops, apples, pumpkins, corn, cabbage, berries, soybeans, maple, 4 or any item used for menu items; 5 (C) dairy products, including but not limited to milk, cream, butter, 6 and cheese; or 7 (D) meat products, including but not limited to beef, chicken, and 8 pork. 9 (c) The credit allowed under this subdivision for the taxable year 10 shall not reduce the tax due for such year to less than the amount 11 prescribed in paragraph (d) of subdivision one of section two hundred 12 ten of this article. However, if the amount of credit allowed under this 13 subdivision for the taxable year reduces the tax to such amount or if 14 the taxpayer otherwise pays tax based on the fixed dollar minimum 15 amount, any amount of credit thus not deductible in such taxable year 16 shall be treated as an overpayment of tax to be credited or refunded in 17 accordance with the provisions of section one thousand eighty-six of 18 this chapter. Provided, however, the provisions of subsection (c) of 19 section one thousand eighty-eight of this chapter notwithstanding, no 20 interest shall be paid thereon. 21 § 2. Section 606 of the tax law is amended by adding a new subsection 22 (qqq) to read as follows: 23 (qqq) Credit for small businesses that sell New York state produced 24 products. (1) A small business shall be allowed a credit against the tax 25 imposed by this article if such small business sells a certain percent- 26 age of qualified products. Such credit shall be computed according to 27 the following schedule: 28 (A) Credit of one thousand dollars when five to nine percent of a 29 qualifying small business' total sales are attributed to the sale of 30 qualifying products. 31 (B) Credit of two thousand dollars when ten to twenty-four percent of 32 a qualifying small business' total sales are attributed to the sale of 33 qualifying products. 34 (C) Credit of five thousand dollars when twenty-five percent or more 35 of a qualifying small business' total sales are attributed to the sale 36 of qualifying products. 37 (2) For the purposes of this subsection, the term: 38 (A) "Small business" shall mean a business which is an independently 39 or privately-owned cafe, restaurant, eatery, bar, pub, brewery, distil- 40 lery, orchard, food truck, retail store, farm stand, hotel, or motel. 41 (B) "Qualified product" shall mean a product which is grown, brewed or 42 distilled in New York state and such products shall include: 43 (i) beer, wine, spirits, and ciders; 44 (ii) agricultural ingredients, including but not limited to wheat, 45 barley, hops, apples, pumpkins, corn, cabbage, berries, soybeans, maple, 46 or any item used for menu items; 47 (iii) dairy products, including but not limited to milk, cream, 48 butter, and cheese; or 49 (iv) meat products, including but not limited to beef, chicken, and 50 pork. 51 (3) If the amount of the credit allowed under this subsection for any 52 taxable year shall exceed the taxpayer's tax for such year, the excess 53 shall be treated as an overpayment of tax to be credited or refunded in 54 accordance with the provisions of section six hundred eighty-six of this 55 article, provided, however, that no interest shall be paid thereon.
A. 3221 3 1 § 3. Subparagraph (B) of paragraph 1 of subsection (i) of section 606 2 of the tax law is amended by adding a new clause (lii) to read as 3 follows: 4 (lii) Credit for small businesses Amount of credit under 5 that sell New York state produced subdivision sixty-one of 6 products under subsection (qqq) section two hundred ten-B 7 § 4. This act shall take effect immediately and shall apply to taxable 8 years beginning on or after January 1, 2026.