Bill > A01971

This bill proposes several significant changes to New York state tax law targeting corporate and individual taxation. First, it modifies the tax rate structure for corporations, introducing a graduated tax rate system where businesses 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 adjusts how certain types of corporate income are treated for tax purposes, specifically reducing the percentage of exempt Controlled Foreign Corporation (CFC) income and Global Intangible Low-Taxed Income (GILTI) that can be excluded from tax calculations. Additionally, the bill introduces a new additional tax on individual taxpayers who claim a federal tax deduction under Section 199A, which provides tax benefits for pass-through business income. This additional tax would be calculated based on the highest federal income tax rates that would have applied to the deducted amount, but the new tax would not apply to taxpayers with federal taxable income below certain thresholds. The bill aims to increase state tax revenue by more closely conforming to federal tax regulations and addressing what legislators may view as tax advantages for certain businesses and high-income individuals.

Budget and Finance

https://www.nysenate.gov/legislation/bills/2025/A1971