Bill > S05954

This bill amends the New York tax law to lower the business income base rate for certain small businesses and expand the small business subtraction modification. Specifically, it reduces the business income base rate from 6.5% to 4% for businesses with a business income base of $290,000 or less, and adjusts the rate for businesses with a business income base between $290,000 and $390,000. Additionally, the bill increases the small business subtraction modification from 3% to 15% of net business or farm income for eligible small businesses, defined as sole proprietors with less than $250,000 in net income or pass-through entities with less than $1.5 million in New York gross business income or less than $250,000 in net farm income. These changes are effective for tax years beginning on or after January 1, 2021.