Bill > S00953

This bill makes several significant changes to New York State tax law, primarily focusing on increasing tax rates and aligning state tax policies with federal regulations. The bill reduces the percentage of exempt Controlled Foreign Corporation (CFC) income from 95% to 50%, which means corporations will now have to pay taxes on a larger portion of their offshore income. For corporate tax rates, the bill introduces a graduated tax structure where companies with a business income base over $2.5 million will be taxed at 8%, those over $10 million will be taxed at 12% on income exceeding $10 million, and those over $20 million will be taxed at 14% on income exceeding $20 million. The bill also modifies the treatment of global intangible low-taxed income, changing from 5% to 50% inclusion in the apportionment fraction. Additionally, the bill introduces an additional tax on individual business income related to the federal Section 199A deduction, effectively imposing a tax on pass-through business income at the highest federal tax rates for individuals whose income exceeds certain thresholds. The credit for pass-through entity tax is also adjusted to 75% of the entity's tax. These changes aim to increase tax revenue and close perceived loopholes in the state's tax system.

Budget and Finance

https://www.nysenate.gov/legislation/bills/2025/S953