Bill > S07643

This bill modifies tax law provisions related to pass-through entity tax credits in New York State, specifically limiting the aggregate credits that partners, members, or shareholders of electing partnerships or S corporations can claim. Under the new legislation, these entities can now claim credits up to 87% of the tax due, rather than the previous full amount. Pass-through entities are business structures like partnerships and S corporations where business income, deductions, and credits are "passed through" to individual owners' personal tax returns, instead of being taxed at the business level. The bill makes this change for both state tax purposes and city tax purposes, effectively reducing the total tax credit these business entities can utilize. The changes will apply to taxable years beginning on or after January 1st following the bill becoming law, which means it will impact tax filings for future years. By limiting the credit to 87%, the state is effectively ensuring that these business entities will pay at least 13% of their calculated tax liability.

Government Affairs

https://www.nysenate.gov/legislation/bills/2025/S7643