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Bill

A 6340

Establishes business franchise and personal income tax credits for a portion of the consideration paid under a contract with a minority or women-owned business

2025 Regular Session Introduced by Crystal Peoples-Stokes

Creates tax credits against business franchise tax and personal income tax for a portion of payments to minority- or women-owned businesses to spur MWOB contracting.

REFERRED TO WAYS AND MEANS
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Bill Summary · A 6340

Summary: Assembly Bill A 6340 (2025)

Overview

A 6340 seeks to stimulate contracting with minority- and women-owned businesses (MWOBs) by creating tax credits against two taxes—business franchise tax and personal income tax—for a portion of the consideration paid under eligible contracts with MWOBs. The bill was introduced on March 4, 2025 and referred to the Ways and Means committee, signaling a fiscal review before any further action.

What the bill would do

  • Establish tax credits against:
    • Business franchise tax
    • Personal income tax
  • The credits would apply to a portion of the consideration paid under a contract with a minority- or women-owned business.
  • The exact mechanics (e.g., credit percentage, caps, eligible expenditures, per-contract limits, carryovers, refundable vs. nonrefundable status) are not specified in the provided text.

Key provisions and open questions (as available)

  • Credits are tied specifically to contracts with MWOBs; this places taxpayers who contract with MWOBs as potential beneficiaries.
  • The bill’s text does not specify:
    • Definitions of “minority-owned” and “women-owned” for eligibility.
    • The maximum credit amounts or annual caps.
    • How “a portion” of the consideration is determined.
    • Any sunset/date limits, carryforward provisions, or interaction with other credits.
    • Administrative procedures for claiming the credits or verification requirements.
  • There is no explicit revenue impact or funding mechanism described in the provided information.

Who would be affected

  • Taxpayers who enter into contracts with minority- or women-owned businesses, including:
    • Individuals filing personal income tax
    • Entities subject to business franchise tax
  • Tax administration would be responsible for implementing and enforcing the credits (likely the state tax department, though not stated).

Fiscal and administrative considerations

  • Referred to Ways and Means, indicating a potential fiscal analysis and revenue impact assessment.
  • Questions for administration: definitions, eligibility criteria, verification, interaction with existing credits, and whether credits are refundable or carryable.

Timeline and status

  • Introduced: March 4, 2025
  • Legislative action: Referred to Ways and Means (no further actions listed in the provided material).

Related legislation

  • Prior-session companion or related bills include: S 1114, S 37, S 6754, S 319, S 845, A 7970, A 2719. These may indicate ongoing interest in MWOB contracting incentives.

Notes for readers

  • The summary reflects information available from the bill’s introductory material. Specific eligibility criteria, credit calculations, and procedural details would be defined in the full bill text and any subsequent amendments.

Compiled from official sources — confirm details with the bill’s official record.

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