Summary of Bill S 2654

Bill Information

• Bill Number: S 2654
• Title: Creates a tax credit for small businesses that sell a certain percentage of products produced in New York State
• Status: Referred to Budget and Revenue
• Introduced: January 22, 2025
• Classification: Bill

Purpose and Intent

Bill S 2654 aims to support small businesses in New York State by providing a tax credit to those that sell a specified percentage of products manufactured within the state. The intent is to encourage local production, stimulate the economy, and promote job creation within New York.

Key Provisions

• Tax Credit Eligibility: Small businesses that sell a minimum percentage of New York-produced goods will qualify for a tax credit. The exact percentage required for eligibility will be defined in the bill's final provisions.
• Credit Amount: The bill outlines a specific dollar amount or percentage of sales that will be credited against the business's state tax liability, although these details may be subject to further legislative discussion.
• Application Process: Small businesses will need to apply for the tax credit, providing documentation of their sales and production practices to demonstrate compliance with the eligibility criteria.

Affected Parties

• Small Businesses: The primary beneficiaries of this bill are small businesses in New York State that engage in the sale of locally produced goods. This support is particularly crucial for businesses in sectors such as manufacturing, agriculture, and artisanal products.
• Consumers: By encouraging local production, consumers may benefit from increased availability of New York-made products, potentially leading to more diverse shopping options.
• State Economy: The bill is designed to bolster the local economy by promoting job creation and sustaining small businesses, which are vital to the state's economic health.

Procedural Aspects

• Current Status: As of January 22, 2025, the bill has been referred to the Budget and Revenue Committee for further consideration. This step is essential for evaluating the fiscal implications of the proposed tax credit.
• Related Legislation: The bill has connections to prior-session bills S 7542 and S 3028, as well as a companion bill A 3221, which may provide additional context or support for its objectives.

Conclusion

Bill S 2654 represents a strategic effort to enhance the viability of small businesses in New York by incentivizing the sale of locally produced goods. If enacted, it could lead to significant economic benefits for both businesses and the broader community, fostering a stronger local economy. Further discussions in the Budget and Revenue Committee will clarify the specifics of the tax credit and its implementation.