Bill > S00625

This bill modifies the tax law regarding the timing of annual tax elections for partnerships and S corporations, specifically changing the deadlines for making these elections and adjusting the required estimated tax payment schedule. Under the new provisions, entities can make their tax election on or before September 15th of the taxable year, with different payment requirements depending on when the election is made. For elections made by March 15th, entities will make four equal installments of 25% throughout the prior calendar year. For elections made between March 15th and June 15th, entities will make an initial 25% payment with the election and three subsequent 25% payments. Elections made between June 15th and September 15th will require a 50% initial payment, followed by two 25% payments, while elections made on September 15th will require a 75% initial payment and a final 25% payment in December. The bill applies to both standard partnerships and S corporations, as well as city-based partnerships and S corporations, and will take effect for taxable years beginning on or after January 1, 2026. This change provides more flexibility for businesses in timing their tax elections while maintaining a structured approach to estimated tax payments.

Budget and Finance, Government Affairs

https://www.nysenate.gov/legislation/bills/2025/S625