New YorkA 30092025-2026 Regular SessionHouseWALLET

Enacts into law major components of legislation which are necessary to implement the state fiscal plan for the 2025-2026 state fiscal year

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Bill Overview

Analyzed Economic Effects

61 provisions identified: 30 benefits, 12 costs, 19 mixed.

2025 inflation refund: $150–$400 per filer

For tax year 2025, many residents get a one‑time refundable credit based on their 2023 return. Married filing jointly or a qualifying surviving spouse gets $400 if 2023 NYAGI is $150,000 or less, or $300 if between $150,001 and $300,000. Single, married filing separately, or head of household gets $200 if 2023 NYAGI is $75,000 or less, or $150 if between $75,001 and $150,000. You must have been a full‑year NY resident in 2023 and not claimed as a dependent. The state may pay the credit in advance, and refunds are paid without interest.

Home bioheat fuel credit extended

You can claim a credit for bioheating fuel bought before January 1, 2029 for your home. The credit is $0.01 per percentage point of biodiesel per gallon, up to $0.20 per gallon. For purchases on or after January 1, 2017, the fuel must be at least 6% biodiesel. Keep records of gallons, biodiesel percent, purchase date, and home use.

New state and NYC credits for families

Beginning January 1, 2025, families who can claim a federal dependent deduction get a new state credit and a matching NYC credit. Each credit equals your tax owed after other credits if you meet income limits based on filing status and number of dependents. You cannot claim the credit if you take certain other state or city credits, or if your disqualified income is over $10,000. The credit phases out if your income is up to $5,000 over the limit. Amounts adjust for cost of living starting in 2026.

$1,200 credit per farm employee

Farms get a $1,200 tax credit for each eligible farm employee. It applies to tax years starting on or after Jan 1, 2022 and before Jan 1, 2029.

Bigger farm overtime credit and advances

Your farm’s overtime credit equals 118% of certified overtime. With a preliminary certificate, you can request an advance for overtime paid January 1 to July 31 (ask by November 1). For PEO‑paid overtime in 2024–2025, you can treat that pay as your own for the 118% credit and request an advance for January 1, 2024 to July 31, 2025. You must reconcile the advance on your return; if you are not eligible, you must add it back as tax.

Brownfield credits at Renaissance Commerce Park

Certain sites in Renaissance Commerce Park qualify for brownfield tax credits. The site must have a cleanup agreement before June 23, 2008, a certificate of completion by December 31, 2017, and no property placed in service before this law. Cleanup and groundwater credits can run through the first placed‑in‑service year and seven more years if first in service before the 2036 tax year. Tangible property credits can run through the first placed‑in‑service year and 10 more years if first in service before the 2036 tax year. Developers must buy from the certificate holder by the 2036 tax year to get the developer credit.

Credits for newspapers and broadcasters

Starting January 1, 2025, eligible media businesses can get $5,000 per net new full‑time job, up to $20,000. They can also get 50% of wages for eligible jobs, up to $50,000 per worker, with a $300,000 cap per business. Statewide caps: $30 million a year ($4 million for new jobs; $26 million for existing jobs, with half set aside for employers with 100 or fewer employees). Each print publication serving a different market counts as its own business. You must carry media liability insurance and claim only the amount on your state certificate, which you attach to your return.

Historic building rehab credit updated

Starting with 2026 tax years, New York updates the historic rehab credit rules. For tax years beginning on or after January 1, 2030, the state credit equals 30% of your federal section 47 credit, capped at $100,000. Projects must be certified historic structures and meet location or affordable‑housing/park exceptions. Recapture aligns with federal rules and caps apply at the entity level for partners and S corp shareholders.

More film credit funds through 2036

New York sets aside $700,000,000 each year from 2024 through 2036 for extra Pool 2 film credits. If your first application is on or after January 1, 2025 and you get Pool 2 funds, you must claim the credit in the tax year that includes the last day of the allocation year. Earlier applications keep their older claiming rules.

Veteran hiring credits extended to 2029

Your business can claim veteran hiring credits for tax years starting on or after January 1, 2015 and before January 1, 2029. In some cases, the veteran must have started work on or after January 1, 2014 and before January 1, 2028.

Stronger, protected funding for MTA transit

Starting April 1, 2026, the mass transit trust fund can pay for rebuilding, vehicles, maintenance, operating costs, debt service, certain rail projects, and programs to help small and minority‑ or women‑owned firms. Money directed to the MTA dedicated tax fund is deposited there by appropriation. The MTA may pledge the fund to back bonds and loans; pledged deposits go first to debt service and reserves, with leftovers for operating and capital needs and transfers to NYCT, its subsidiaries, Staten Island rapid transit, and the Long Island Rail Road. Money in the fund is protected from claims tied to certain tax laws.

More low-income housing tax credits

The state raises the total low‑income housing tax credits it can award to $187 million, then to $217 million on April 1, 2026; $247 million on April 1, 2027; $277 million on April 1, 2028; and $307 million on April 1, 2029. Projects financed with certain refunded bonds also qualify for the credit. This allows more affordable housing projects to receive credits, without changing per‑project annual allowances.

Excelsior credits and access for chip suppliers

Companies running qualified semiconductor supply chain projects can join the Excelsior program. For these projects, the job credit per net new job equals gross wages times up to 7%. You must be in the Excelsior program and the project must be classified as a semiconductor supply chain project. The credit rate rule starts January 1, 2025.

15% credits for semiconductor R&D

Certified participants in the semiconductor R&D program can claim tax credits equal to 15% of qualified investment costs. Corporate filers can claim up to 10 years, but not below the fixed minimum tax; any excess is refunded without interest. Personal income tax filers get a refundable credit. You must have a certificate, attach it to your return, and credits can be recaptured if revoked. These rules start Jan 1, 2025.

New Excelsior credits for chip projects

Excelsior participants in semiconductor supply chain projects can claim a 3% investment credit starting Jan 1, 2025. They also get an R&D credit equal to half of the federal in‑state R&D credit, capped at 7% of in‑state qualified R&D spending. You cannot claim this and certain other state investment credits for the same property in the same year.

Up to 75% credit for chip training

Approved businesses can claim 75% of eligible training wages and costs, up to $25,000 per trained employee. The total credit is capped at $5,000,000 for semiconductor manufacturers and $1,000,000 for other eligible businesses. Excess personal income tax credits are refundable without interest. Credits apply in the year training is completed and start Jan 1, 2025. A certificate is required and must be attached; recapture applies if revoked.

Extra tax on high earners in set years

The law adds a supplemental tax that recaptures tax‑table benefits for certain years. It applies to resident filers whose New York adjusted gross income and taxable income fall in the statute’s higher tiers. The formulas vary by filing status and year.

Higher taxes on large property investors

Starting January 1, 2025, New York disallows depreciation and adds back federal interest deductions tied to covered properties held by institutional real estate investors and their partners. Interest is allowed in the year the property is sold to an individual for a home or to a nonprofit focused on affordable housing. These rules increase New York taxable income for affected investors.

New MCTD taxes on payroll and self-employed

The law adds Metropolitan Commuter Transportation District taxes on employers and on net self‑employment earnings. Employer rates vary by payroll size, MCTD zone, and whether the quarter starts before or after July 1, 2025. Self‑employed people owe the tax if MCTD net earnings are over $50,000 before 2026 or over $150,000 on or after 2026, at zone‑specific rates. Professional employer organizations must split payroll between clients and themselves as the law requires.

New state income tax brackets

New York updates income tax brackets and rates. It sets schedules for returns starting in 2023 through 2025, adds new schedules for 2027–2032, and adds rules for years after 2032. Your bill depends on the full tables and your income.

30% independent film credit plus bonuses

Independent film companies can claim a 30% credit on qualified production costs. You must meet a 75% in‑facility spend test, or if in‑facility costs are under $3,000,000, have at least 75% of out‑of‑facility shooting days in New York. You can get an extra 10% on wages in listed upstate counties if your budget is at least $500,000, an extra 10% on non‑wage costs there if most principal days are in those counties, and an extra 10% on in‑state scoring if you pay at least five musicians. Credits apply against corporate and personal income taxes. To qualify, include a NY promo video or the required end‑credit and logo, and buy taxable items from sellers registered to collect NY sales tax. These rules apply to initial applications received on or after Jan 1, 2025, and credits are limited to two qualified films per calendar year.

Film credits clawed back if revoked

If the state revokes your film or post‑production credit certificate, you must add back all prior credits in the year the revocation is final. This raises your tax for that year. The law also adds the Empire State film production credit to the official credit list on tax forms starting Jan 1, 2025.

Genesee gaming fees fund worker pay

A vendor track in Genesee County near a Native American Class III gaming site must pay a 56% vendor fee on wager revenue after payouts. It must also set aside an extra 5% for non‑executive workers’ healthcare costs, pay increases, more full‑time jobs, or county distributions. The vendor must file an annual plan and report; the commission can audit and penalize misuse. The rule starts June 1, 2025 and ends April 1, 2030.

Higher borrowing cap for transit projects

The law raises the total borrowing limit for certain transit authorities to $115.5 billion. This higher cap supports approved capital projects. It excludes refundings, debt service reserves, issuance costs, certain program obligations, and bond notes paid only from other bonds. The cap covers obligations issued after January 1, 1993 for plans from 1992 through 2029.

Income‑tax procedures used for more taxes

The state applies personal income‑tax administrative, assessment, reporting, and collection rules to other referenced taxes unless they conflict. This standardizes how those taxes are run and enforced.

Easier and faster post-production credits

You qualify for the VFX/animation post‑production credit if facility costs are at least $500,000 or at least 10% of total VFX/animation post‑production costs. For first applications filed on or after January 1, 2025, you claim the post‑production credit in the year the film is completed. Only in‑state original content post‑production work counts; editing previously produced content does not.

Limited partners can seek tax relief

A limited partner or LLC member can apply to limit their Article 28 tax liability if each of their ownership and distributive share is under 50% and they had no duty to act on the entity’s tax. If granted, they owe only the higher of their ownership or distributive share percent of the entity’s liability, minus what the entity paid. No penalties apply, but false statements void relief. Denials can be reviewed in court within four months.

Big investors must wait 90 days

Starting July 1, 2025, covered institutional buyers cannot buy a one‑ or two‑family home unless it has been publicly listed for at least 90 days. A price change restarts the 90‑day clock. Covered buyers must give a notarized form with the offer and file it with the state within three days. Breaking the rule can bring civil damages and penalties up to $250,000, and failing to file can bring penalties up to $10,000. Certain nonprofits, land banks, community land trusts, and specified creditors/servicers are excluded.

New credits for big chip R&D

The Semiconductor Research and Development Project Program lets certified projects receive annual tax credit certificates for up to ten years. A project must plan at least $100,000,000 of qualified investment in New York and meet compliance rules. The law also defines which semiconductor supply chain projects qualify, focusing on activities that directly support chip manufacturing and packaging.

Betting taxes fund help and youth sports

From mobile sports wagering taxes, the commission pays at least $6 million per year through fiscal year 2026 and $12 million per year after that for problem gambling. It also pays $5 million per year for a statewide youth sports grant program. Deposits and monthly reports are required.

Schools and libraries exempt from MCTD tax

The law removes eligible educational institutions—such as public school districts, BOCES, certain approved disability schools, qualifying nonpublic schools, and public libraries—from the MCTD employer definition. It also excludes local government employers whose covered workers are in MCTD zone two. These entities may no longer owe the MCTD employer tax.

State takes over STAR checks and appeals

Starting January 1, 2026, the Commissioner decides and verifies eligibility for basic and enhanced STAR using assessment rolls, income tax returns, and STAR program data. The same verification process applies to both benefits unless the law requires a difference. If the Commissioner finds your parcel ineligible, you have 45 days to respond; then the assessor must remove or deny the exemption as directed. Local assessors and review boards cannot hear objections to these removals. You can appeal only to the Department, the State Board of Real Property Tax Services, or through an Article 78 court case. If a non‑filer’s income counts for eligibility, that person must file a sworn income statement.

Electronic tax warrants create instant liens

Starting July 1, 2025, the tax department files warrants electronically with the Department of State. On the filing date, the tax amount becomes a lien on your New York property, and the commissioner is deemed to have a judgment. Civil Practice Law rules on lien duration and extensions apply. There is no filing fee for these electronic filings.

Stronger assessments if you don’t report changes

If you do not file required reports of federal changes, the tax commissioner may mail a notice for more tax. The amount in the notice is assessed on the mailing date. You have 30 days to file the report or an amended return showing the error. The state may assess tax at any time if no return is filed, a fraudulent return is filed to evade tax, or you fail to meet these reporting rules.

Employee training credit ends after 2028

The employee training incentive credit is only available for tax years that start before January 1, 2029. It equals 50% of eligible training costs (up to $10,000 per employee) and 50% of eligible intern stipends (up to $3,000), limited to the amount on your certificate. You must be approved and hold a certificate from the Commissioner of Economic Development.

New limits on independent film credits

Non‑labor qualified production costs are capped at $60,000,000. Creative pay (writers, directors, composers, producers, performers) that counts for the credit cannot exceed 40% of other qualified costs. You can claim the credit for no more than two films per calendar year. You also cannot use the same costs to claim this and another credit. These limits apply beginning January 1, 2025.

Economic development Article 22 ends 2028

Article 22 of the economic development law is repealed on December 31, 2028. Programs and rules under that Article end or change on that date.

Excelsior tax credits end after 2049

The state sets annual caps for Excelsior credits and stops new credits for tax years that start on or after January 1, 2050. Businesses cannot claim new Excelsior credits for those years.

STAR rules for seniors and income

For the basic STAR exemption, a home is not eligible if affiliated income is over $250,000. Affiliated income is the combined AGI of owners and owner‑spouses who live there, minus IRA and annuity distributions. For taxable years after 2024, enhanced STAR applies when at least one owner is age 65 by December 31, with a surviving‑spouse exception. Beginning January 1, 2026, if you get basic STAR and qualify for enhanced, the assessor must grant the upgrade after the Commissioner notifies them. These rules help seniors while setting a clear income cutoff.

Tighter refund windows after IRS changes

If you file an amended return that accepts a federal change, New York treats the added tax as assessed on your filing date. You must file any refund or credit claim tied to a federal change within two years of when the report or amended return was due. If you miss the 90‑day reporting deadline, no interest is paid on that refund. New York City follows parallel rules, and some older “alternative adjustment actions” do not have to be reported earlier than 270 days after the law’s effective date.

Big post-production credits spread over years

If your post‑production credit is $1,000,000 to less than $5,000,000, you must claim half in each of two years. If it is $5,000,000 or more, you claim one‑third each year for three years. This spreading rule does not apply if your initial application was filed on or after January 1, 2025; those claims are made in the year the film is completed.

Jobs retention credit: new dates and rates

To join the Empire State jobs retention program, your business must be operating in New York on or after June 1, 2025, and the emergency event must occur on or after that date. The benefit period is shortened so the schedule shows the credit you can claim in six months of eligibility. Certified small employers (3–49 employees) can claim up to 15% of gross wages for impacted jobs, capped at $500,000 per event. Only certified participants can claim the credit.

New 90/180‑day partnership deadlines

Partnerships with a NY resident partner or NY‑source income must report federal changes within 90 days. Partners generally must report and pay any NY tax within 180 days after the final federal determination. A partnership may elect to pay on behalf of partners if it files on time and follows the rules. Penalties apply for late filings: $50 per partner per month (up to five months) for partnerships and S corps, and $150 per month for trusts (up to $1,500 per year).

One partnership rep speaks for New York

Your federal partnership representative serves as the New York representative unless you name someone else under state rules. That representative has sole authority for New York matters, and all direct and indirect partners are bound by their actions.

Electronic tax notices with authorization

If you have an online tax account and authorize e-delivery, the Tax Department sends required documents electronically. The Department’s electronic records count as proof of delivery. Just viewing information online does not count unless you gave the required authorization.

Clear right to start tax appeals

You can start a case in the Division of Tax Appeals when a written or electronic tax notice clearly says you have a right to a hearing. This applies to deficiency notices, refund or credit denials, and license actions. A notice that only says you owe past‑due tax does not give that right.

NY won’t tax this inflation credit

If a credit paid under this act is taxable at the federal level, New York does not tax it. You keep that credit free of New York state and local income tax.

Sales tax break for low‑priced vending

Low‑priced food and bottled water from vending machines stay tax‑free through May 31, 2026. Items are exempt when priced at $1.50 or less in coin‑only machines, or $2.00 or less in machines that take other payments.

Some NY credits kept through 2028

Several state credits remain available for tax years that begin on or before December 31, 2028. They do not apply to tax years that start after December 31, 2028.

Workforce credit extended through 2028

Tax credits under the Labor Law 25-b program apply to taxable periods that begin before January 1, 2029. This keeps the credit available for those filing periods.

Higher threshold to file estimated tax

If you owe the tax under section 209, you file an estimated tax declaration only if expected tax exceeds $1,000 for years starting before January 1, 2026. For years starting on or after January 1, 2026, you declare only if expected tax exceeds $5,000. The same date rules apply to related surcharge declarations.

No-solicit zones for homeowners

The Secretary of State can set zones where owners face heavy real estate solicitations. Owners can file a statement to opt out. Brokers and regular buyers cannot call, mail, or contact listed owners.

Stricter rules for Empire State jobs program

Applicants must follow all worker protection and environmental laws. They must not owe past-due state taxes. They also must not owe local property taxes for any year before they apply. If they do, they cannot get an Empire State jobs retention program certificate.

New fees and taxes on wagering providers

For wagers by New York residents, multi‑state account wagering providers pay a 5.45% market origin fee plus an extra 1% to the state’s general fund. The state also transfers 12.8% of market origin fee receipts to the Tax Department as pari‑mutuel tax. The wager tax rate stays 1.6% of the wager plus 20% of the breaks through December 31, 2026. Providers must pay monthly by the fifth business day.

New estimated tax payment rules

For years starting before Jan 1, 2026, the cutoff is $1,000. For years starting on or after Jan 1, 2026, the cutoff is $5,000. If your second‑prior‑year tax is above the cutoff, your first installment can be 25% of that tax. Higher prior‑year tax (over $100,000) can trigger a larger first‑installment percentage. New York S corporations have special calculations.

Report federal tax changes to NYC fast

If your federal or New York State taxable income changes, you must tell the NYC Commissioner of Finance within 90 days after the final determination. For federal adjustments that were final before this law took effect, you have one year from the law’s effective date to report and no interest accrues on those older adjustments. For alternative adjustment actions that happened before the law took effect, reporting is not required earlier than 270 days after the law’s effective date. The commissioner may require electronic filing.

Tax notices can go to your online account

If you authorize it, the tax department sends required documents to your online services account. Its electronic delivery record counts as proof. Article 28 return rule changes apply to returns filed or amended on or after December 1, 2024, and are treated as in force on and after April 20, 2024. Whether this timing affects you depends on when you file or amend.

Tax warrant filings go online July 2025

The Department of State must tell Tax and Finance the filing date for electronic tax warrants and make that information public and searchable by name. It must also certify filing dates when asked. This applies to electronic filings on or after July 1, 2025.

Auburn and Buffalo may add hotel taxes

Auburn can adopt up to a 5% occupancy tax on room rates. Buffalo can adopt up to a 3% hotel tax that ends Dec 31, 2027, with set revenue uses. Permanent residents staying 90+ days, the State and federal government (if immune), and qualifying nonprofits are exempt. Local laws are required before the taxes apply.

Three-year Cornell equine safety project

A three‑year Cornell research project studies fetlock fractures and provides free screenings and imaging for enrolled horses. New York horses not enrolled may get services at actual cost. The state covers necessary project costs from the general fund under the agreement. A franchised corporation must make a one‑time $2,000,000 payment by September 1, 2025, held in escrow to buy screening and imaging equipment.

Racing taxes end; new rules and splits

Temporary pari‑mutuel tax reductions and Racing Law section 1013 now end on July 1, 2026. The commission uses 82.6% of market origin fee receipts for credits, splitting 36.7% to regional off‑track betting corporations by prior‑year in‑state handle and 45.9% to racing associations by racing type. Starting January 1, 2026, some racing board appointees must meet industry experience tests and non‑public members must hold a license during service.

Sponsors & Cosponsors

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Cosponsors

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Roll Call Votes

All Roll Calls

Yes: 35 • No: 27

House vote • 5/8/2025

FLOOR Vote