New York Senate Bill S02654

New York 2025-2026 Regular Session

• Introduced: 1/22/25
• Refer: 1/22/25
• 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 S02654 proposes the establishment of a tax credit for small businesses in New York State that sell a specified percentage of products produced within the state. The bill outlines a tiered credit system where businesses can receive credits ranging from $1,000 to $5,000 based on the percentage of their total sales that come from qualified New York-produced products. Qualified products include various agricultural items, alcoholic beverages, dairy, and meat products. The bill aims to incentivize local production and support small businesses by providing financial relief through tax credits.

Impact

If enacted, this bill will amend the New York State tax law to introduce a new tax credit specifically for small businesses that meet the sales criteria outlined in the legislation. This change is expected to bolster local economies by encouraging small businesses to source and sell New York-produced goods, potentially leading to increased sales for local producers and a stronger agricultural sector. The bill will also affect the state’s tax revenue, as it will reduce tax liabilities for qualifying businesses.

Sentiment

The sentiment surrounding Bill S02654 appears to be positive, as it aims to support small businesses and promote local agriculture. Discussions in committee may reflect a general consensus on the need for economic support for small businesses, especially in light of challenges faced during economic downturns. However, there may be concerns about the fiscal impact on state revenues and the criteria for qualifying products.

Contention

Notable points of contention may arise regarding the definition of 'small business' and the specific percentage thresholds for the tax credits. Some stakeholders may argue that the thresholds are either too low or too high, potentially excluding certain businesses from benefiting. Additionally, there may be discussions about the long-term sustainability of such tax credits and their impact on state funding for other programs.