S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   3221
 
                        2025-2026 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             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:
 
   Section 1. Section 210-B of the tax law is amended  by  adding  a  new
 subdivision 61 to read as follows:
   61.  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:
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD03715-01-5
              

 A. 3221                             2
 
   (A) BEER, WINE, SPIRITS, AND CIDERS;
   (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
 (qqq) to read as follows:
   (QQQ)  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.
 A. 3221                             3
 
   § 3. Subparagraph (B) of paragraph 1 of subsection (i) of section  606
 of  the  tax  law  is  amended  by  adding a new clause (lii) to read as
 follows:
 (LII) CREDIT FOR SMALL BUSINESSES     AMOUNT OF CREDIT UNDER
 THAT SELL NEW YORK STATE PRODUCED     SUBDIVISION SIXTY-ONE OF
 PRODUCTS UNDER SUBSECTION (QQQ)       SECTION TWO HUNDRED TEN-B
   § 4. This act shall take effect immediately and shall apply to taxable
 years beginning on or after January 1, 2026.