Bill > S03534

This bill amends New York state tax law to expand the existing tax exemption for military compensation by creating three new circumstances under which active military service pay can be excluded from a resident's adjusted gross income (AGI). Specifically, the exemption now applies when a taxpayer: (A) maintains a permanent New York residence but serves active military duty outside the state for at least 90 days in a tax year; (B) maintains a permanent residence outside New York state for the entire tax year while in active service; or (C) maintains a military-related abode in New York different from their permanent address, such as living in military barracks, bachelor's quarters, or on a naval vessel. The bill defines "active service in the armed forces of the United States" as active duty (excluding training) in the army, navy, marine corps, air force, or coast guard, as defined in Title 10 of the United States Code. This legislation will take effect immediately and apply to taxable years beginning on or after January 1, 2026, effectively broadening tax benefits for military service members and providing more flexible terms for the existing military compensation tax exemption.

Budget and Finance

https://www.nysenate.gov/legislation/bills/2025/S3534