Bill > A01989

This bill modifies the tax law related to annual tax elections for partnerships and S corporations, specifically changing the timing and calculation of estimated tax payments. Under the new provisions, entities can make their annual tax election to be taxed under a specific article on or before September fifteenth of the taxable year, which is later than the previous deadline. The bill introduces a graduated payment schedule based on when the election is made: for elections made by March 15th, entities will make four equal installments of 25% each; for elections made between March 15th and June 15th, they'll make an initial 25% payment and three subsequent 25% installments; for elections made between June 15th and September 15th, entities will make a 50% initial payment followed by two 25% installments; and for elections made on September 15th, they'll make a 75% initial payment with a final 25% installment. The required annual payment remains calculated as the lesser of 90% of the current year's tax or 100% of the previous year's tax. The changes will take effect for taxable years beginning on or after January 1, 2026, providing more flexibility for partnerships and S corporations in managing their tax elections and payments.

Budget and Finance

https://www.nysenate.gov/legislation/bills/2025/A1989