AN ACT to amend the economic development law, in relation to establishing tax incentives and financial assistance for small businesses facing rising operating costs.

Section 1. Legislative Findings and Purpose

The Legislature finds that small businesses are essential to the economic stability of New York communities, providing employment, supporting local economies, and contributing to neighborhood development. Rising rents, utility costs, insurance premiums, and supply expenses have placed increasing pressure on independently owned businesses.

The purpose of this act is to provide targeted financial relief to qualifying small businesses, encourage employee retention, and strengthen commercial districts throughout New York State.

Section 2. Small Business Cost Relief Credit

A refundable state tax credit shall be established for eligible small businesses employing fewer than 50 full-time equivalent employees.

Eligible businesses may receive a credit of up to $5,000 annually, subject to available funding and verification of qualifying operating expenses.

Priority shall be given to businesses demonstrating significant increases in commercial rent, utilities, insurance, or essential supply costs.

Section 3. Employee Retention Incentives

Businesses that maintain their workforce throughout the taxable year may qualify for additional financial incentives, provided that they comply with applicable wage laws, workplace safety regulations, and state employment requirements.

No business shall be eligible for additional incentives if it has been found to have committed wage theft or engaged in fraudulent claims under this act.

Section 4. Accountability and Oversight

The Department of Taxation and Finance, in coordination with the Department of Economic Development, shall establish procedures for reviewing applications, verifying eligibility, and preventing fraudulent claims.

An annual report shall be submitted to the Legislature detailing the number of businesses assisted, the total amount of credits issued, regional distribution of funds, and measurable employment outcomes.

Section 5. Fiscal Responsibility

The total amount of funding distributed under this act shall be subject to an annual appropriation by the Legislature. The administering agencies shall conduct periodic evaluations to determine whether the program is achieving its intended economic objectives.

Section 6. Effective Date

This act shall take effect on the first day of January following its enactment, subject to the adoption of necessary regulations.

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Statement from Representative Eleanor Ross

“New York's small businesses are being squeezed by rising costs, and when a neighborhood business closes, the consequences extend far beyond its owner. Employees lose their jobs, commercial districts lose their character, and communities lose opportunities.

This legislation offers targeted relief to businesses that need it while maintaining clear standards for accountability. We cannot eliminate every economic challenge through government intervention, but we can make sensible investments that help responsible businesses stay open, retain employees, and continue serving their communities.

New Yorkers deserve an economy where small businesses have a fair opportunity to succeed—not just the companies large enough to absorb every unexpected expense.”

Status: Introduced by Representative Eleanor Ross. Referred to the relevant legislative committee for consideration.