Bill > S01487

This bill modifies tax regulations for small businesses in New York, primarily focusing on business income taxation and the definition of small businesses. The legislation introduces a graduated tax rate structure for businesses with different income bases, with specific changes taking effect in 2027 and 2028. For taxable years starting in 2027, businesses with a business income base up to $400,000 will be taxed at 4%, with a sliding scale for businesses earning between $400,000 and $500,000. In 2028, this rate further reduces to 2.5% for businesses with income up to $400,000. The bill also expands the definition of a "small business" by removing the requirement that businesses must employ at least one person and raising the income threshold from $250,000 to $500,000 for sole proprietorships and farm businesses. Additionally, the bill allows for a 15% modification of net business income for qualifying small businesses, including sole proprietorships, limited liability companies, partnerships, and New York S corporations. These changes aim to provide tax relief and support for small businesses by offering more favorable tax rates and broader qualifying criteria.

Budget and Finance

https://www.nysenate.gov/legislation/bills/2025/S1487