Budget & Taxes (Tax Incentives)

in committee · New York · Assembly Jan 7, 2026

A 4951: Relates to pass-through manufacturers zero percent tax rate

This bill sets a zero percent franchise tax rate for qualified pass-through manufacturers in New York, eliminating their business tax liability. It defines these manufacturers as businesses primarily engaged in manufacturing (using "business receipts" instead of "gross receipts" to determine eligibility) that are not participating in the START-UP NY program. The bill also disallows investment tax credits for property used by such manufacturers, with the disallowance phased in from 40% in 2027 to 100% by 2029. These changes apply to tax years beginning on or after January 1, 2027.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill eliminates franchise tax for qualifying manufacturers, providing direct tax relief. Aligns with tax relief as a support indicator for Budget & Taxes.95% confidence

Sub-Topics Business Taxes Tax Incentives

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in committee · New York · Senate Jan 7, 2026

S 2429: Creates a work opportunity tax credit

S 2429 creates a New York state tax credit for employers who hire residents from targeted groups (like veterans, ex-offenders, or long-term unemployed individuals) as defined by federal law. Employers can claim up to $500 per eligible employee annually, with a total lifetime cap of $90 million and an annual limit of $30 million. The credit reduces state tax liability but cannot lower tax below minimum thresholds, and any unused credit is treated as an overpayment. The program applies to wages paid starting January 1, 2026, and expires December 31, 2028. It directly affects New York employers hiring from specified target populations.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates tax credit reducing state tax liability for employers, providing targeted tax relief aligns with support indicators for fiscal policy.95% confidence ✓ Labor & EmploymentSupports Labor & EmploymentBill incentivizes hiring targeted groups (veterans, ex-offenders) via tax credit, directly advancing employment opportunities for underserved workers.90% confidence ✓ VeteransSupports VeteransBill explicitly targets veterans as eligible for tax credit to incentivize employer hiring, directly supporting veteran employment opportunities.95% confidence

Sub-Topics Tax Credits Tax Incentives

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in committee · New York · Assembly Jan 7, 2026

A 2389: Relates to exemptions from sales and use taxes for gift certificates, electronic gift cards and magnetic gift cards

This bill creates a sales and use tax exemption for gift certificates, electronic gift cards, and magnetic gift cards sold by retailers. It defines these products to include physical or digital cards with a banked value redeemable for goods or services (excluding pre-paid phone cards). The exemption applies to the full face value of the card when purchased, meaning retailers wouldn't collect tax on the sale of these items. The law takes effect during the next quarterly sales tax period after it becomes law, requiring the tax commissioner to implement it promptly.

Topics ✗ Budget & TaxesOpposes Budget & TaxesExempts gift cards from sales tax, reducing state tax revenue and weakening budget collection.90% confidence

Sub-Topics Sales Tax Tax Incentives

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in committee · New York · Senate Jan 7, 2026

S 631: Makes reclassification of rent controlled dwelling retroactive to time of decrease in income of members of household of dwelling

This bill (S 631) helps rent-controlled tenants with tax abatements who experience a significant income drop. If a household’s combined income decreases by more than 20% after receiving a tax abatement, they can apply to lower their rent to match the original rent-to-income ratio. The adjusted rent can be made retroactive to when the income dropped, but only back to the date of their most recent approved application (not further). It applies specifically to households with rent-controlled units under existing tax abatement programs.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides tax relief for lower-income tenants via rent adjustment under tax abatement program when income drops >20%, aligning with tax relief indicators.95% confidence ✓ HousingSupports HousingBill enables rent-controlled tenants with income drops to lower rent to maintain affordability, strengthening tenant protections and preserving affordable housing access.95% confidence

Sub-Topics Tax Incentives Affordable Housing Renters Tenant Rights

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in committee · New York · Senate Jan 7, 2026

S 6992: Exempts baby bottles and bottle nipples from sales and compensating use tax

This bill exempts baby bottles and bottle nipples from sales and compensating use taxes in New York. It specifically defines "baby bottle" as a bottle with a nipple for feeding infants and "bottle nipple" as the flexible part with a feeding hole. The tax exemption applies to these items when purchased for use by babies or very young children. The law takes effect immediately upon enactment.

Topics ✓ Budget & TaxesSupports Budget & TaxesExempts essential infant products from sales tax, providing direct tax relief to families purchasing these items.90% confidence

Sub-Topics Sales Tax Tax Incentives

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in committee · New York · Assembly Jan 7, 2026

A 5308: Prohibits exemptions for owners of vacant or unoccupied storefront properties

This bill prohibits tax exemptions for commercial storefront properties that have been vacant or unoccupied for at least two years. It directly affects owners of ground-floor commercial properties used for selling goods or services (like retail stores) who fail to maintain regular business activity. The key provision requires that such properties lose their tax exemption eligibility if they meet the defined terms of "vacant" (minimal objects) or "unoccupied" (no regular business presence). The law applies immediately to future tax assessments, removing tax breaks for long-vacant storefronts to encourage property use.

Topics ✓ Budget & TaxesSupports Budget & TaxesCloses tax loophole for vacant commercial properties, increasing state revenue by removing exemptions for unoccupied storefronts.90% confidence

Sub-Topics Property Tax Tax Incentives

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in committee · New York · Assembly Jan 7, 2026

A 4436: Provides an exemption for the sale of the first $35,000 of a battery, electric, or plug-in hybrid electric vehicle from state sales and compensating use taxes

Provides an exemption for the sale of the first $35,000 for a battery, electric, or plug-in hybrid electric vehicle from state sales and compensating use taxes; authorizes local governments to elect such incentives; repeals the hybrid exemption after ten years.

Topics ✓ Budget & TaxesSupports Budget & TaxesExempts first $35k of EV sales from state taxes, providing direct tax relief to buyers per support indicator for middle-income tax relief.95% confidence ✓ EnergySupports EnergyExempts EVs from taxes to boost adoption, reducing fossil fuel dependence and advancing renewable energy infrastructure transition.95% confidence ✓ EnvironmentSupports EnvironmentTax exemption for EVs promotes clean energy adoption and reduces emissions, directly advancing environmental protection goals.92% confidence ✓ TransportationSupports TransportationBill provides tax exemption for EVs to promote adoption, aligning with sustainable transportation incentives and reducing vehicle emissions.95% confidence

Sub-Topics Sales Tax Tax Incentives Electric Vehicles Energy Storage Electric Vehicles

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passed both · New York · Senate May 20, 2026

S 7335: Relates to enhanced eligibility requirements of STAR

This bill amends New York's STAR program to adjust how senior citizens' income is calculated for property tax exemption eligibility. It allows seniors who experience income decreases due to retirement or the death of a spouse to use their next year's income tax return (instead of the current year's) to determine eligibility for the enhanced exemption. To qualify, seniors must file their next year's tax return or provide income documentation to the local assessor by the tax deadline. This change directly affects seniors facing reduced income from retirement or bereavement, ensuring they maintain eligibility during the transition period.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill provides tax relief for seniors by allowing lower future income to qualify for property tax exemption, directly supporting tax relief for middle/lower income seniors.95% confidence

Sub-Topics Income Tax Property Tax Tax Incentives

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in committee · New York · Senate Jan 7, 2026

S 5841: Relates to tax exemptions for properties in violation of zoning laws

S 5841 prohibits property tax exemptions for buildings or land used in violation of local zoning laws. This directly affects property owners who use their land for purposes not permitted by their municipality's zoning regulations, such as operating a business in a residential-only zone. The bill amends the real property tax law to explicitly deny tax exemptions when a property's use conflicts with applicable zoning rules. It takes effect immediately upon enactment and is currently pending in the Local Government committee.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill closes tax loophole by denying exemptions for zoning-violating properties, promoting fiscal responsibility and increasing tax revenue for compliant use.95% confidence

Sub-Topics Property Tax Tax Incentives

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in committee · New York · Senate Jan 7, 2026

S 6251: Subjects certain state lands to real property taxation

This bill changes the tax status of certain state-owned lands used for reforestation in New York. It requires these lands to be taxed under real property tax law in all counties except Orange County, where the tax exemption remains. Previously, all such lands were exempt from county-level taxes; this bill removes that exemption for every county except Orange. The change takes effect immediately upon enactment.

Topics ✓ Budget & TaxesSupports Budget & TaxesRemoves tax exemption for state lands, increasing county tax revenue and strengthening fiscal management under real property tax law.95% confidence

Sub-Topics Property Tax Tax Incentives

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