Bill > S03943

This bill modifies the franchise tax rate for businesses with a high income base in New York State. Specifically, for businesses with a business income base exceeding five million dollars, the bill changes the tax rate from 7.25% to 9% for taxable years beginning on or after January 1, 2025. The "business income base" refers to the portion of a company's business income that is apportioned within New York State for tax purposes. This change is part of a series of tax rate adjustments over the past decade, with previous rates being 7.1% before 2016, 6.5% from 2016 to 2021, and 7.25% for high-income businesses from 2021 to 2025. The bill does not affect small businesses, manufacturers, or qualified emerging technology companies, which may have different tax calculations. The tax rate change aims to generate additional revenue from larger businesses operating in New York State, with the new rate taking effect immediately upon the bill's passage.

Budget and Finance

https://www.nysenate.gov/legislation/bills/2025/S3943