Income/Franchise:
New York: Enacted Budget Does Not Increase Corporate Income Tax Rate But Does Contain Various Tax Provisions

S.8309B/A.8809-B, signed by gov. 4/20/24. New York Governor Kathy Hochul signed legislation as part of New York’s 2024-2025 Budget Act (Budget), which does not contain the corporate and personal income tax rate increases that had been proposed by the New York Legislature but does include some other tax-related provisions, such as:

• Extending through 2029 the limit on the New York itemized deduction for charitable contributions related to individuals with income over $10 million;
• Extending to 2029 provisions relating to the tax shelter reporting and penalty provisions;
• A technical correction to the Metropolitan Commuter Transportation Mobility Tax;
• Modifying the restriction on the issuance of notices for a tax year that is the subject of a pending petition filed with the New York Division of Tax Appeals;
• Adopting a refundable commercial security tax credit applicable to certain expenses of eligible businesses relating to qualified retail theft prevention measures;
• Extending through 2029 provisions relating to the current electronic filing and payment mandates;
• Clarifying the treatment of past-due tax liabilities and other matters related to the filing of amended sales tax returns;
• Extending provisions relating to the exemption from sales and use tax of certain tangible personal property and services sold to a related person required by the Dodd-Frank Wall Street Reform and Consumer Protection Act; and
• Creating a refundable tax credit generally available upon application to independently owned New York newspaper and broadcast media businesses based on new and existing employees (enacted as part of a separate budget bill, S8306C/A8806C).

See forthcoming Multistate Tax Alert for more details on these newly enacted provisions, and please contact us with any questions in the meantime.