New York Assembly Bill A03221

New York 2025-2026 Regular Session

• Introduced: 1/23/25
• Refer: 1/23/25
• Refer: 1/7/26

Caption

Creates a tax credit for small businesses that sell a certain percentage of products produced in New York state; provides such small businesses include independently or privately-owned cafes, restaurants, eateries, bars, pubs, breweries, distilleries, orchards, food trucks, retail stores, farm stands, hotels, or motels.

Summary

Bill A03221 proposes to amend the New York tax law by introducing a tax credit specifically for small businesses that sell a certain percentage of products produced within New York State. The credit is tiered based on the percentage of qualifying sales, with businesses able to receive credits of $1,000, $2,000, or $5,000 depending on whether they sell 5-9%, 10-24%, or 25% or more of qualifying products, respectively. Qualifying products include items such as beer, wine, spirits, agricultural ingredients, dairy, and meat products that are grown or produced in New York.

Impact

If enacted, this bill would create a new tax incentive aimed at supporting local small businesses and encouraging them to promote and sell New York-produced goods. It would specifically affect the tax liabilities of small businesses defined as independently or privately-owned establishments such as cafes, restaurants, bars, breweries, and retail stores. This could potentially lead to increased sales of local products and bolster the state's economy by supporting local agriculture and production industries.

Sentiment

The sentiment around Bill A03221 appears to be generally supportive among committee members, as evidenced by the 25-10 vote in the Assembly Ways and Means Committee, where it was held for consideration. There is an acknowledgment of the importance of supporting local businesses, though some members may have concerns regarding the fiscal implications of the tax credits.

Contention

Points of contention may arise regarding the potential financial impact on state revenues due to the introduction of these tax credits. Some lawmakers may express concerns about whether the benefits to small businesses will outweigh the costs to the state budget. Additionally, there may be discussions on the definition of 'small business' and what qualifies as 'New York state produced products', which could lead to differing opinions on the bill's scope and effectiveness.