Bill > A07016

This bill expands New York's manufacturing tax incentive to include S corporations that are qualified New York state manufacturers. Specifically, the bill modifies existing tax law to allow shareholders of S corporations that are qualified New York manufacturers to receive certain tax benefits. These benefits include the ability to calculate their tax liability based on the lesser of two factors: (1) the shareholder's combined separately stated items of income, loss, or deduction multiplied by the highest marginal federal tax rate, or (2) the actual distributions made to the shareholder during the tax year. The bill also clarifies how these modifications apply to shareholders of S corporations that were previously New York C corporations, ensuring that certain modifications related to income, loss, and deduction continue to be applied. The tax modifications are specifically limited to distributions related to income derived from New York sources and included in the shareholder's New York adjusted gross income. The bill will take effect on the first day of January following its enactment and will apply to all tax years starting on or after that date, providing a new tax incentive for S corporations in the manufacturing sector.

Budget and Finance

https://www.nysenate.gov/legislation/bills/2025/A7016