S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   3028
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                             January 26, 2023
                                ___________
 
 Introduced  by  Sen.  STEC  --  read twice and ordered printed, and when
   printed to be committed to the Committee on Budget and Revenue
 
 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:
 
   Section  1.  Section  210-B  of the tax law is amended by adding a new
 subdivision 59 to read as follows:
   59. CREDIT FOR SMALL BUSINESSES THAT  SELL  NEW  YORK  STATE  PRODUCED
 PRODUCTS. (A) A SMALL BUSINESS SHALL BE ALLOWED A CREDIT AGAINST THE TAX
 IMPOSED  BY THIS ARTICLE IF SUCH SMALL BUSINESS SELLS A CERTAIN PERCENT-
 AGE OF QUALIFIED PRODUCTS. SUCH CREDIT SHALL BE  COMPUTED  ACCORDING  TO
 THE FOLLOWING SCHEDULE:
   (I)  CREDIT  OF  ONE  THOUSAND  DOLLARS WHEN FIVE TO NINE PERCENT OF A
 QUALIFYING SMALL BUSINESS' TOTAL SALES ARE ATTRIBUTED  TO  THE  SALE  OF
 QUALIFYING PRODUCTS.
   (II) CREDIT OF TWO THOUSAND DOLLARS WHEN TEN TO TWENTY-FOUR PERCENT OF
 A  QUALIFYING  SMALL BUSINESS' TOTAL SALES ARE ATTRIBUTED TO THE SALE OF
 QUALIFYING PRODUCTS.
   (III) CREDIT OF FIVE THOUSAND DOLLARS WHEN TWENTY-FIVE PERCENT OR MORE
 OF A QUALIFYING SMALL BUSINESS' TOTAL SALES ARE ATTRIBUTED TO  THE  SALE
 OF QUALIFYING PRODUCTS.
   (B) FOR THE PURPOSES OF THIS SUBDIVISION, THE TERM:
   (I)  "SMALL  BUSINESS" SHALL MEAN A BUSINESS WHICH IS AN INDEPENDENTLY
 OR PRIVATELY-OWNED CAFE, RESTAURANT, EATERY, BAR, PUB, BREWERY,  DISTIL-
 LERY, ORCHARD, FOOD TRUCK, RETAIL STORE, FARM STAND, HOTEL, OR MOTEL.
   (II)  "QUALIFIED  PRODUCT" SHALL MEAN A PRODUCT WHICH IS GROWN, BREWED
 OR DISTILLED IN NEW YORK STATE AND SUCH PRODUCTS SHALL INCLUDE:
   (A) BEER, WINE, SPIRITS, AND CIDERS;
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD06721-01-3
 S. 3028                             2
              

 
   (B) AGRICULTURAL INGREDIENTS, INCLUDING  BUT  NOT  LIMITED  TO  WHEAT,
 BARLEY, HOPS, APPLES, PUMPKINS, CORN, CABBAGE, BERRIES, SOYBEANS, MAPLE,
 OR ANY ITEM USED FOR MENU ITEMS;
   (C)  DAIRY PRODUCTS, INCLUDING BUT NOT LIMITED TO MILK, CREAM, BUTTER,
 AND CHEESE; OR
   (D) MEAT PRODUCTS, INCLUDING BUT NOT LIMITED  TO  BEEF,  CHICKEN,  AND
 PORK.
   (C)  THE  CREDIT  ALLOWED  UNDER THIS SUBDIVISION FOR THE TAXABLE YEAR
 SHALL NOT REDUCE THE TAX DUE FOR SUCH  YEAR  TO  LESS  THAN  THE  AMOUNT
 PRESCRIBED  IN  PARAGRAPH  (D) OF SUBDIVISION ONE OF SECTION TWO HUNDRED
 TEN OF THIS ARTICLE. HOWEVER, IF THE AMOUNT OF CREDIT ALLOWED UNDER THIS
 SUBDIVISION FOR THE TAXABLE YEAR REDUCES THE TAX TO SUCH  AMOUNT  OR  IF
 THE  TAXPAYER  OTHERWISE  PAYS  TAX  BASED  ON  THE FIXED DOLLAR MINIMUM
 AMOUNT, ANY AMOUNT OF CREDIT THUS NOT DEDUCTIBLE IN  SUCH  TAXABLE  YEAR
 SHALL  BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED OR REFUNDED IN
 ACCORDANCE WITH THE PROVISIONS OF SECTION  ONE  THOUSAND  EIGHTY-SIX  OF
 THIS  CHAPTER.  PROVIDED,  HOWEVER,  THE PROVISIONS OF SUBSECTION (C) OF
 SECTION ONE THOUSAND EIGHTY-EIGHT OF THIS  CHAPTER  NOTWITHSTANDING,  NO
 INTEREST SHALL BE PAID THEREON.
   §  2. Section 606 of the tax law is amended by adding a new subsection
 (ooo) to read as follows:
   (OOO) CREDIT FOR SMALL BUSINESSES THAT SELL NEW  YORK  STATE  PRODUCED
 PRODUCTS. (1) A SMALL BUSINESS SHALL BE ALLOWED A CREDIT AGAINST THE TAX
 IMPOSED  BY THIS ARTICLE IF SUCH SMALL BUSINESS SELLS A CERTAIN PERCENT-
 AGE OF QUALIFIED PRODUCTS. SUCH CREDIT SHALL BE  COMPUTED  ACCORDING  TO
 THE FOLLOWING SCHEDULE:
   (A)  CREDIT  OF  ONE  THOUSAND  DOLLARS WHEN FIVE TO NINE PERCENT OF A
 QUALIFYING SMALL BUSINESS' TOTAL SALES ARE ATTRIBUTED  TO  THE  SALE  OF
 QUALIFYING PRODUCTS.
   (B)  CREDIT OF TWO THOUSAND DOLLARS WHEN TEN TO TWENTY-FOUR PERCENT OF
 A QUALIFYING SMALL BUSINESS' TOTAL SALES ARE ATTRIBUTED TO THE  SALE  OF
 QUALIFYING PRODUCTS.
   (C)  CREDIT  OF FIVE THOUSAND DOLLARS WHEN TWENTY-FIVE PERCENT OR MORE
 OF A QUALIFYING SMALL BUSINESS' TOTAL SALES ARE ATTRIBUTED TO  THE  SALE
 OF QUALIFYING PRODUCTS.
   (2) FOR THE PURPOSES OF THIS SUBSECTION, THE TERM:
   (A)  "SMALL  BUSINESS" SHALL MEAN A BUSINESS WHICH IS AN INDEPENDENTLY
 OR PRIVATELY-OWNED CAFE, RESTAURANT, EATERY, BAR, PUB, BREWERY,  DISTIL-
 LERY, ORCHARD, FOOD TRUCK, RETAIL STORE, FARM STAND, HOTEL, OR MOTEL.
   (B) "QUALIFIED PRODUCT" SHALL MEAN A PRODUCT WHICH IS GROWN, BREWED OR
 DISTILLED IN NEW YORK STATE AND SUCH PRODUCTS SHALL INCLUDE:
   (I) BEER, WINE, SPIRITS, AND CIDERS;
   (II)  AGRICULTURAL  INGREDIENTS,  INCLUDING  BUT NOT LIMITED TO WHEAT,
 BARLEY, HOPS, APPLES, PUMPKINS, CORN, CABBAGE, BERRIES, SOYBEANS, MAPLE,
 OR ANY ITEM USED FOR MENU ITEMS;
   (III) DAIRY PRODUCTS,  INCLUDING  BUT  NOT  LIMITED  TO  MILK,  CREAM,
 BUTTER, AND CHEESE; OR
   (IV)  MEAT  PRODUCTS,  INCLUDING BUT NOT LIMITED TO BEEF, CHICKEN, AND
 PORK.
   (3) IF THE AMOUNT OF THE CREDIT ALLOWED UNDER THIS SUBSECTION FOR  ANY
 TAXABLE  YEAR  SHALL EXCEED THE TAXPAYER'S TAX FOR SUCH YEAR, THE EXCESS
 SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED OR REFUNDED  IN
 ACCORDANCE WITH THE PROVISIONS OF SECTION SIX HUNDRED EIGHTY-SIX OF THIS
 ARTICLE, PROVIDED, HOWEVER, THAT NO INTEREST SHALL BE PAID THEREON.
   §  3. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
 of the tax law is amended by adding a new clause (l) to read as follows:
 S. 3028                             3
 
 (L) CREDIT FOR SMALL BUSINESSES       AMOUNT OF CREDIT UNDER
 THAT SELL NEW YORK STATE PRODUCED     SUBDIVISION FIFTY-NINE OF
 PRODUCTS UNDER SUBSECTION (OOO)       SECTION TWO HUNDRED TEN-B
   § 4. This act shall take effect immediately and shall apply to taxable
 years beginning on or after January 1, 2024.