Budget & Taxes

in committee · New York · Senate Jan 7, 2026

S 1487: Relates to business income base and certain small business taxpayers

This bill amends New York State and New York City tax laws to adjust tax rates for small business income. It establishes tiered rates for businesses with "business income base" under $500,000, reducing rates from 6.5% (2026) to 4% (2027) and further to 2.5% (2028) for the base amount, with higher marginal rates for income above $400,000. It defines "small business" as sole proprietors with under $550,000 net income, or entities like LLCs/partnerships/S-corps with under $550,000 for farm businesses or $1.5 million for non-farm businesses. The changes apply to taxable years beginning on or after January 1, 2027, and would affect sole proprietors, small partnerships, LLCs, and S-corporations meeting the income thresholds.

Topics ✓ Budget & TaxesSupports Budget & TaxesReduces tax rates for small businesses (under $500k income) from 6.5% to 2.5% over three years, providing direct tax relief to middle-income business owners.95% confidence

Sub-Topics Business Taxes Tags Small Business

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in committee · New York · Assembly Apr 16, 2026

A 5340: Creates a tax credit for certain animal expenses

This bill creates a tax credit for household pet owners, allowing a deduction for medical/veterinary costs and everyday expenses like food or grooming for up to two companion pets. It caps the credit at $150 annually for daily costs and $300 for medical expenses per pet, totaling a maximum $900 per household yearly. The credit applies to tax returns filed for 2026 and later, covering expenses for dogs or cats kept primarily for companionship (excluding service animals, research animals, or breeding operations). Proof of pet ownership and expenses will be required to claim the credit.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates tax credit for pet expenses, offering relief to households; caps credit to limit fiscal impact, aligning with middle-income tax relief.90% confidence

Sub-Topics Tax Credits

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in committee · New York · Senate Jan 7, 2026

S 1256: Prohibits the transfer of unexpended moneys from funds receiving moneys from a dedicated fee into any other fund

This bill prohibits state agencies from moving unspent money from funds that receive dedicated fees (like specific user fees) into other funds or using it for unrelated purposes. It applies directly to state funds that are legally required to keep money separate from general funds and spend it only for the specific purpose they were created for. The law requires these funds to remain distinct, preventing their unspent balances from being redirected to other programs or accounts. As a procedural budget rule, it focuses on fund management rather than new services or taxes.

Topics ✓ Budget & TaxesSupports Budget & TaxesPrevents diversion of dedicated fee funds, ensuring fiscal accountability for designated spending per bill's prohibition on transferring unexpended moneys.90% confidence

Sub-Topics Appropriations Fees & Licensing State Budget

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in committee · New York · Senate Jan 7, 2026

S 1556: Relates to indexing personal income taxes to the cost of living adjustment; repealer

This bill (S 1556) adjusts New York State personal income tax thresholds to automatically rise with inflation starting in 2026. It requires the state tax commissioner to increase key tax amounts - like income tax brackets, standard deductions, and certain calculation thresholds - each year using the federal Chained Consumer Price Index (C-CPI-U). This change directly affects all New York residents who file personal income tax returns, preventing their tax burden from increasing solely due to inflation. The adjustments will be rounded to the nearest $50 increment and take effect immediately, though the first adjustment applies to the 2026 tax year.

Topics ✓ Budget & TaxesSupports Budget & TaxesIndexes tax brackets to inflation, preventing automatic tax increases for NY residents, providing relief to middle/lower income earners95% confidence

Sub-Topics Income Tax

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in committee · New York · Senate Jan 7, 2026

S 2174: Provides that the use tax on heating fuels shall be suspended during winter months for certain low income senior citizens

This bill suspends the sales tax on heating fuels for eligible seniors during winter months. It directly affects low-income residents aged 65+ who do not qualify for the Low Income Home Energy Assistance Program (LIHEAP) but have household income up to $500 above LIHEAP's income limit. The exemption applies to heating fuel purchases for home use in December, January, and February. The policy removes the tax burden on these specific seniors during the coldest months without altering existing LIHEAP eligibility rules.

Topics ✓ Budget & TaxesSupports Budget & TaxesSuspends heating fuel tax for low-income seniors, providing direct tax relief to vulnerable group during winter months.95% confidence

Sub-Topics Sales Tax

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in committee · New York · Assembly Jan 7, 2026

A 3948: Provides for a tax credit for certain persons relocating to the state to provide or receive reproductive care or gender-affirming care

This bill provides a $500 tax credit for individuals who permanently relocate to the state to access reproductive care or gender-affirming care, or for healthcare providers who relocate to offer such care. It applies to people moving from states with stricter abortion laws or more restrictive gender-affirming care access laws. The credit is available on individual income tax returns for the tax year of relocation, with excess credits refundable if they exceed tax liability. The policy takes effect for taxable years beginning January 1, 2025.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides refundable $500 tax credit for relocation to access care, offering direct tax relief to targeted individuals aligning with support indicators for middle-income tax relief.95% confidence ✓ HealthcareSupports HealthcareProvides tax credit to access reproductive/gender-affirming care, improving patient access to restricted services95% confidence

Sub-Topics Income Tax Tax Credits Women's Health

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in committee · New York · Senate Jan 7, 2026

S 7884: Provides for a deduction from personal gross income for expenses incurred in the adoption of a child in the foster care system

Senate Bill S 7884 proposes to amend the tax law to allow a deduction from personal gross income. This deduction is specifically for expenses incurred by taxpayers when adopting a child from the foster care system. It covers various costs, including adoption fees, medical and legal fees, court costs, and other related expenses. The bill aims to reduce the taxable income for individuals who incur these specific adoption-related expenses.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill provides tax deduction for adoption expenses, reducing taxable income for individuals - direct tax relief aligning with support indicators.95% confidence

Sub-Topics Business Taxes

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in committee · New York · Senate Jan 7, 2026

S 4427: Relates to a business tax credit for purchase of data breach insurance

S 4427 creates a 25% tax credit for small businesses (those with fewer than 101 employees) that purchase qualified data breach insurance. This insurance must cover expenses related to data theft, loss, or unauthorized access, and businesses must comply with cybersecurity standards like the NIST framework or state-approved equivalents. The bill requires insurance premiums to be separately itemized in contracts and limits the credit to premiums paid in ordinary business operations. It applies to taxable years beginning after the law takes effect and expires after five years.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates 25% tax credit for small businesses on data breach insurance, providing tax relief and promoting cybersecurity compliance without increasing government spending.95% confidence ✓ TechnologySupports TechnologyCreates tax credit for data breach insurance requiring NIST cybersecurity compliance, directly enhancing data privacy and cybersecurity protections for small businesses.95% confidence

Sub-Topics Business Taxes Tax Credits Cybersecurity

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failed · New York · Senate Jan 7, 2026

S 157: Prevents nonresident race horse owners from avoiding use tax in certain situations; repealer

Repeals certain provisions relating to use tax exemptions for certain race horses; prevents nonresident race horse owners from avoiding use tax in certain situations.

Topics ✓ Budget & TaxesSupports Budget & TaxesRepeals use tax exemption for nonresident horse owners, closing a tax avoidance loophole to increase state revenue, aligning with fiscal responsibility indicators.95% confidence

Sub-Topics Business Taxes Sales Tax

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in committee · New York · Senate Jan 7, 2026

S 2330: Imposes an excise tax on sugary drinks

This bill imposes a tax on sugary drinks based on their sugar content per 12-ounce serving. Distributors (like manufacturers and wholesalers) pay the tax, which is added to the retail price: no tax for drinks with ≤7.5g sugar/12oz, $0.01 per ounce for 7.5-30g, and $0.02 per ounce for ≥30g. Revenue from this tax funds a "community health equity fund" as specified in the bill's abstract. The tax applies to most nonalcoholic beverages containing added sugars, excluding medical drinks, milk, natural fruit/vegetable juices, and water.

Topics ✓ Budget & TaxesSupports Budget & TaxesImposes excise tax on sugary drinks with revenue funding community health equity program, advancing public health funding through targeted taxation.95% confidence ✓ HealthcareSupports HealthcareTax revenue funds a 'community health equity fund' per bill summary, directly advancing public health programs as specified in healthcare topic description.92% confidence

Sub-Topics Business Taxes Sales Tax

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