Bill > A10255

This bill modifies New York State and New York City tax laws to adjust tax rates for businesses based on their "business income base," which is the profit a business earns. For taxable years beginning in 2027, the bill introduces new, lower tax rates for businesses with a business income base up to $500,000, with the lowest rate of 4% applying to businesses with income up to $400,000. For taxable years beginning in 2028, the tax rates are further reduced, with the lowest rate of 2.5% applying to businesses with income up to $400,000. Additionally, the bill revises the definition of a "small business" for tax purposes, primarily by increasing the income thresholds for sole proprietors, limited liability companies (LLCs), partnerships, and New York S corporations to qualify for a tax modification that allows them to deduct a portion of their business or farm income. Specifically, the income limit for sole proprietors and farm businesses to be considered small businesses is raised from $250,000 to $500,000, and the income limit for non-farm businesses structured as LLCs, partnerships, or New York S corporations is also raised from $250,000 to $500,000 for their ownership interests. These changes are intended to benefit smaller businesses and will take effect immediately, applying to taxable years beginning on or after January 1, 2027.

Budget and Finance

https://www.nysenate.gov/legislation/bills/2025/A10255