Bill > A04951

This bill introduces a new tax provision for pass-through manufacturers in New York, creating a specialized tax treatment for certain manufacturing businesses. The bill defines a "qualified pass-through manufacturer" as a manufacturing business principally engaged in manufacturing, excluding those participating in the START-UP NY program. For these businesses, the bill allows for special tax modifications: income from the manufacturer can be treated differently for tax purposes, with specific rules about how wages and compensation are calculated. The bill gradually implements these changes, starting at 40% application in 2027 and reaching full 100% implementation by 2029. Additionally, the bill restricts investment tax credits for qualified pass-through manufacturers, meaning these businesses will not be eligible for certain tax credits on property placed in service during the tax year. The legislation aims to provide a unique tax framework for manufacturers organized as pass-through entities such as sole proprietorships, partnerships, limited liability companies, or S corporations, with the goal of potentially providing tax incentives for manufacturing businesses in New York State.

Budget and Finance

https://www.nysenate.gov/legislation/bills/2025/A4951