PRIA Logo™
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

Sponsored By: Budget

Signed by Governor

WAYS AND MEANSRULESFINANCE

Personalized for You

How does this bill affect your finances?

Personalize government policy and PRIA will tell you what this bill means for your household, plus every other piece of legislation we track. PRIA reads each provision against your financial profile to show you exactly what matters to your wallet.

Free to download

Bill Overview

Analyzed Economic Effects

107 provisions identified: 50 benefits, 28 costs, 29 mixed.

Bigger child tax credits for families

For 2025, New York residents get $1,000 per qualifying child ages 0–3 and $330 per child ages 4–16. For 2026 and 2027, the older-child amount rises to $500. The credit falls $16.50 per $1,000 of federal adjusted gross income above filing-status limits. Those limits are $110,000 for joint filers; $75,000 for single filers, heads of household, and qualifying surviving spouses; and $55,000 for married separate filers. Children must meet relationship, residence, support, joint-return, and citizenship, national-status, or taxpayer-identification requirements. The supplied summaries disagree about the rules for 2028.

Bigger tax credit for geothermal equipment

New York's geothermal equipment credit covers 25% of qualified costs. For equipment placed in service starting July 1, 2025, the maximum rises from $5,000 to $10,000. The $5,000 cap still applies to equipment placed in service through June 30, 2025.

New tax relief for lower-income filers

Starting in 2025, eligible filers get credits against remaining New York State or New York City tax after other credits. Income ceilings range from $31,503 to $91,902, based on filing status and qualifying dependents. Eligibility requires the specified federal dependent deduction, no more than $10,000 in disqualified income, and no allowance for the listed competing credits. Beginning in 2026, income limits receive cost-of-living increases, and reduced relief extends up to $5,000 above the applicable limit.

Tax refunds for living organ donors

Starting with tax years beginning January 1, 2025, full-year New York residents get a one-time living-organ donation credit. It covers up to $10,000 in unreimbursed travel, lodging, and lost wages, claimed in the transplant year. Qualifying donations include liver, pancreas, kidney, intestine, lung, and bone marrow. Donors cannot claim it for donations receiving benefits under Public Health Law section 4371. Any credit above the tax owed is refunded without interest.

Unused geothermal credits become household refunds

For tax years beginning January 1, 2026, eligible taxpayers can choose refunds for geothermal credits exceeding their tax. The choice includes allowable unused credits carried over from earlier years. Federal adjusted gross income cannot exceed $180,000 for joint filers or qualifying surviving spouses. The limit is $90,000 for single filers, married separate filers, and heads of household. These refunds earn no interest.

City theater productions gain credit funding

The New York City musical and theatrical production credit pool rises from $300 million to $400 million. The state assigns credits based on each production's first performance date. The program's sunset remains January 1, 2028. The larger pool does not guarantee any production a particular credit.

Emergency-hit employers get wage tax credits

The Empire State Jobs Retention Program bases credits on gross wages for jobs affected by a governor-declared emergency. Maximum rates are 15% for employers with 3–49 employees, 7.5% for 50–100 employees, and 3.75% for larger employers. Each employer can receive no more than $500,000 for the same emergency-triggering event.

Farm employers get certified overtime credits

Qualified farm employers receive a credit equal to 118% of state-certified eligible overtime expenses; hours beyond 60 per week do not count. Employers must mainly farm, use eligible employees, and have farming income equal to at least two-thirds of total federal gross income above $30,000. Overtime can be paid directly or through a qualified professional employer organization. Annual certificate applications are due February 1 after the year ends; preliminary applications are due September 30. Employers can request a 118% advance for certified expenses paid January 1 through July 31 by November 1, then reconcile it on their return. When over 50% of farming income comes from licensed winery or cidery sales, counted employees must work on qualified agricultural property.

Farm employers keep worker retention credits

The farm workforce retention credit equals $1,200 for each eligible farm employee. It covers tax years beginning on or after January 1, 2022, and before January 1, 2029. The extension replaces the prior cutoff for tax years beginning before January 1, 2026.

Game producers gain broader tax credits

Qualified digital gaming productions need at least $50,000 in production costs, down from $100,000, to access the credit. The employee wage limit used in calculating the credit rises from $100,000 to $200,000. Eligible work now includes concepts, prototypes, narrative direction, sound design, testing, encoding, and bug fixing. These costs must directly and mainly support creating, producing, or modifying digital gaming media.

Game producers gain broader tax credits

Qualified digital game productions can count up to $5 million in production costs toward the credit, up from $4 million. This is a cost limit, not a $5 million credit. The required New York share of production costs falls from 75% to 51%. That share must cover costs incurred and paid for property used or services performed in New York.

Self-employed workers get commuter tax relief

Starting in 2026, the Metropolitan Commuter Transportation District self-employment tax applies only when district net earnings exceed $150,000. The prior threshold was $50,000. Each person gets a separate threshold, even on a joint income tax return. Rates are 0.60% for zone-one earnings and 0.34% for zone-two earnings.

Separate publications gain jobs credit access

For tax years beginning January 1, 2025, each publication serving a state-approved separate market counts as its own print media business. Businesses must meet the media jobs program requirements and carry media liability insurance. The credit pays $5,000 per net new full-time employee, up to $20,000 per business. It also covers 50% of eligible wages, counting up to $50,000 per employee annually, with a $300,000 business cap. Owners, partners, and shareholders can claim their certified credit shares.

Film credit funding lasts through 2036

New York continues the film credit's $700 million annual Additional Pool 2 allocation through 2036. Annual allocations of $45 million for post-production and $5 million for television writers' and directors' fees and salaries also continue. The Department of Economic Development allocates the credits under each program's rules. These are business credit pools, not direct household payments.

Electronic tax warrants create property liens

Beginning July 1, 2025, New York must file tax warrants and covered related records electronically, without a filing fee. Filing information is searchable by the named person's name, and copies go to the named county clerk. Once the Department of State confirms filing, the tax becomes a judgment and a lien on that person's New York property. The lien also covers property acquired while it remains active, and judgment-lien duration and extension rules apply regardless of who enforces it. Covered records filed or deemed filed from July 1 are included, including new related records concerning older warrants.

Disaster jobs credits get shorter windows

Businesses must submit a completed Empire State Jobs Retention Program application within 180 days of the governor's emergency declaration for their county. The credit eligibility period starts on the declaration date. The preliminary benefit schedule now covers six months, rather than ten years. Participants need a tax-credit certificate to claim the benefit. Failing the eligibility requirements means losing the credit without extending the original six-month period.

Ineligible farm owners repay credit advances

Beginning January 1, 2026, an ineligible recipient must add the full farm-employer credit advance back as tax. This applies when the recipient was neither an eligible farm employer nor an owner of one for the advance's tax year.

Ineligible filmmakers must repay claimed credits

Independent film taxpayers must add previously claimed credits back to tax when their eligibility certificate is finally revoked. The Department of Economic Development must revoke it because the taxpayer failed to meet eligibility requirements. Repayment occurs through added tax in the year the revocation becomes final.

New income tax schedules for households

New York changes personal income tax schedules, lowering some rates while raising some higher-income rates compared with prior schedules. For tax years beginning in 2026, rates range from 3.90% to 10.90%; for 2027–2032, they range from 3.80% to 10.90%. Tax depends on income, filing status, and the year your tax year begins. One added-tax rule below $80,650 uses the difference between 5.80% of taxable income and the table tax, multiplied by an income-based fraction. The supplied text lacks that full fraction and gives overlapping post-2032 rates, so it does not support a complete calculation.

Organ donors get credits, not deductions

For tax years beginning January 1, 2025, a refundable organ-donation credit replaces the prior deduction. The credit covers up to $10,000 in unreimbursed transplant-related travel, lodging, and lost wages. The old deduction applies only to earlier tax years and was limited to $10,000, claimed once in the transplant year. That deduction required full-year residency and excluded donors receiving donation benefits under Public Health Law section 4371.

Minority business owners gain tax relief

Some limited partners and limited liability company members can request relief from the business's state and local sales-tax liability. Ownership and profit-and-loss shares must each be below 50%; limited liability partnership partners are excluded. Approved liability equals the original tax multiplied by the higher share, plus interest and minus entity payments, with no entity penalties. Relief is barred for applicants who handled tax compliance, owe past-due taxes, have a Tax Law criminal conviction, or whose approval would undermine compliance or state interests. Materially false or fraudulent application information instead makes the applicant liable for the entity's full tax, interest, and penalties.

Transit capital funding and borrowing limits

Beginning September 1, 2025, the Metropolitan Transportation Authority transfers 28.5% of collected article 23 tax revenue, including interest and penalties, to its 2025–2029 capital account. Transfers are due each month's last business day, after required debt payments and reserves are covered. Separate accounts support specified tolling and 2020–2024 capital costs, including reimbursements and debt payments, and 2025–2029 or successor capital projects. This money must add to—not replace—other public funding, and spending must follow bondholder agreements and federal law. Covered borrowing for approved 1992–2029 capital plans is capped at $115.5 billion, applying to obligations issued after January 1, 1993, with statutory exclusions.

Home heating fuel tax credit continues

The bioheating fuel credit covers qualifying purchases before January 1, 2029, for home heating or hot water in New York. Fuel must contain at least 6% biodiesel. The credit pays $0.01 per gallon for each percentage point of biodiesel, up to $0.20 per gallon.

Less paperwork for homeowners receiving STAR

Some homeowners receiving STAR exemptions or credits no longer need yearly income statements after three consecutive years without filing tax returns. They must have proved income eligibility through statements, and only those qualifying owners can own the property. The state can still request statements or deny benefits when income is too high. Assessors must also upgrade basic STAR exemptions without a new application when the state finds the home qualifies for enhanced STAR.

Older homeowners gain STAR eligibility protections

For the enhanced STAR exemption age rule, at least one owner who mainly lives in the home must be 65 or older. An existing exemption is not removed solely because that spouse dies if the surviving spouse is at least 62. For tax years after 2024, the enhanced STAR credit age rule requires at least one main-home owner to be 65 by December 31. A previously allowed credit continues after that spouse's death when the surviving spouse is at least 62 by December 31.

One-time inflation refunds for New Yorkers

The law creates a refundable credit for 2025 using 2023 New York income and filing status. Joint filers and qualifying surviving spouses get $400 with income up to $150,000, or $300 above $150,000 through $300,000. Single, separate, and head-of-household filers get $200 up to $75,000, or $150 above $75,000 through $150,000. Recipients must have been full-year New York residents and not claimed as dependents in 2023. The state can advance payments using 2023 returns; payments are free of state and local income tax, without interest.

Property tax credits reach qualified individuals

Starting with tax years beginning January 1, 2025, each qualified taxpayer can claim a credit, replacing the one-credit-per-household limit. New York residents must live in the same home for at least six months and have federal adjusted gross income of $18,000 or less. Property taxes, reduced by STAR credits, or 25% of adjusted rent must exceed the income-based threshold: 3.5% at income up to $3,000, rising to 6.5% above $14,000 through $18,000. Credits range from $150 to $375 when the taxpayer or a claimed dependent is 65 or older, and $50 to $75 otherwise; qualified joint-filing spouses share the credit and any overpayment. Nonfilers can claim through a return or state form within three years after the calendar-year return due date, and the state can request income, household, and residence information.

Employers keep credits for hiring veterans

The qualified-veteran hiring credit covers tax years beginning January 1, 2015, through years beginning before January 1, 2029. The veteran's New York job must start on or after January 1, 2014, and before January 1, 2028. Full-time or part-time employment must last at least 12 continuous, uninterrupted months. Employers claim the credit in the year that period ends. The same hire cannot support another credit under the same tax article.

Independent filmmakers gain refundable tax credits

Eligible independent film taxpayers can claim the production credit against New York personal income tax. This applies to initial applications received on or after January 1, 2025. Credit exceeding tax can be refunded or applied as an overpayment, without interest. Credit amounts and eligibility follow the independent film production program.

Theater producers get longer credit windows

The New York musical and theatrical production credit's expiration moves from January 1, 2026, to January 1, 2030. Separately, the New York City production credit covers tax years beginning before January 1, 2028. City credit applications are due June 30, 2027. The city credit period ends September 30, 2027, or earlier if the production closes or reaches its cap. Specified city program duties continue through December 31, 2029.

Unused game-production credit funds carry forward

Unused money in New York's $5 million annual digital gaming media production credit allocation carries into later tax years. This applies to tax years beginning on or after January 1, 2023. Eligible production businesses can apply for allocations left unused in earlier years. This carries forward the program's available allocation, not an individual business's awarded credit.

Tax revenue flows into transit funds

For the covered certified tax revenue, 15% goes to a metropolitan transit operating account and 85% to a dedicated transit trust fund. Of the trust-fund amount, 85% goes to specified city transit systems and 15% to Long Island Rail Road and Metro-North. The commuter railroad share requires an appropriation. Beginning April 1, 2026, an added source of covered sales tax revenue can move from the trust fund into the MTA Dedicated Tax Fund. Those transfers require appropriations and follow existing distribution rules and debt-service adjustments.

More tax credits for affordable housing

New York raises the statewide low-income housing credit allocation cap from $172 million to $187 million. It reaches $217 million on April 1, 2026, and $247 million on April 1, 2027. It then reaches $277 million on April 1, 2028, and $307 million on April 1, 2029. Credits support eligible low-income buildings; these caps are not payments promised to individual households.

Added income tax recaptures table savings

For tax years starting in 2026, New York adds a tax that takes back tax-table savings for affected filers. For specified filing groups, calculations apply when New York adjusted gross income exceeds $107,650 and is no more than $25 million. Above $25 million in adjusted gross income, the added tax equals 10.90% of New York taxable income minus the tax-table amount. Filing status, taxable income, and phase-in rules affect the calculation. Separate filing-status formulas apply for tax years starting in 2027 through 2032; their full terms are not supplied here.

Estate gift tax addbacks last longer

New York's estate gift addback now covers deaths before January 1, 2032, replacing the January 1, 2026 cutoff. Certain taxable gifts made within three years before death are added to the estate if not already in the federal estate. Existing exclusions remain, including specified nonresident gifts and real or tangible property outside New York. The resulting added tax is an obligation at death, but cannot be deducted for New York estate-tax purposes.

Employers get smaller rehabilitation hiring credits

For tax years starting January 1, 2025, the hiring credit covers 35% of the first $5,000 in qualified first-year wages. Previously, it covered the first $6,000, so the maximum falls from $2,100 to $1,750 per qualifying employee. The same cut applies to second-year wages when the employee qualifies through the federal vocational rehabilitation referral credit. The first year starts when work begins; the second year is the following one-year period.

Business job credits face future limits

Excelsior Jobs Program credits have a $200 million annual total cap for tax years beginning in 2030–2034. Green CHIPS projects receive separate treatment. No credits are allowed for tax years beginning on or after January 1, 2050.

Employers face new commuter payroll taxes

For quarters beginning July 1, 2025, commuter-district employers with payroll above $312,500 face revised payroll tax rates. Zone-one rates are 0.055% for payroll above $312,500 through $375,000, 0.115% above $375,000 through $437,500, 0.60% above $437,500 through $2.5 million, and 0.895% above $2.5 million. Zone-two non-local-government employers use 0.055%, 0.115%, 0.34%, and 0.635% for those same payroll bands. Zone-one local governments use 0.60%, rather than 0.895%, above $2.5 million. Professional employer organizations calculate payroll separately for each client and for themselves.

Independent film credits face annual limits

Annual independent film credits are capped at $20 million for films with less than $10 million in qualified production costs. Films with at least $10 million in qualified costs share an $80 million annual cap. Applications receive priority by filing date within at least two application periods each year. Production costs used for this credit cannot also support another New York tax credit.

Large housing investors lose tax deductions

For tax years beginning January 1, 2025, covered institutional investors lose depreciation deductions on New York one- and two-unit residential properties. They must also add back related federal interest deductions, including through affected partners, members, or shareholders. Coverage requires at least 10 covered properties, management of pooled funds as a fiduciary, and $30 million in net value or managed assets. The asset test applies on any day during the tax year. The interest add-back has a sale-year exception for sales to an individual's principal residence or a qualifying affordable-housing nonprofit.

Disaster job awards require staffing recovery

The Empire State Jobs Retention Program covers eligible for-profit businesses harmed by emergencies declared on or after June 1, 2025. Businesses must be authorized in New York, in good standing, and show substantial physical damage and economic harm. Applications must include a plan to reach at least the site's pre-emergency staffing level within one year of applying. Failure to follow the plan cancels the award unless the business proves economic hardship. With hardship, the commissioner can instead reduce the award in proportion to jobs not restored or retained.

Partnership owners face new adjustment duties

Certain direct partners must report federal adjustments and pay added New York tax, penalties, and interest within 180 days. The clock starts at the final determination date, and prior payments or withholding reduce the balance. Under the default process, partners included on a partnership group return avoid separate filing and payment. A properly reported partnership-level payment replaces partners' tax on the same adjustment, but partners cannot also deduct or reclaim it. New York resident direct partners can claim allowed credits for taxes the partnership paid for them to another state or locality.

New limits for institutional home buyers

Beginning July 1, 2025, covered institutional buyers cannot buy or offer to buy covered one- or two-family homes before 90 days of public listing. A change in asking price starts a new 90-day period at that price. These buyers must give sellers or their agents a signed, notarized form identifying themselves as covered entities. They must file that form with the state attorney general within three days of giving it to the seller or agent. Violations can bring civil damages and penalties up to $250,000 for purchase restrictions or $10,000 for disclosure violations.

Transit funds gain shares and limits

The MTA capital lockbox assigns 80% of funded project costs to New York City Transit, Staten Island Rapid Transit, and MTA Bus. Long Island Rail Road and Metro-North each receive a 10% share. Priorities include system improvements and more transit access in areas with limited options. Central business district tolling operating costs can be paid only from the lockbox's 2020–2024 capital program account. The state Budget Director must approve that operating spending plan each year.

Semiconductor research credits with compliance duties

The law creates semiconductor research credits worth 15% of qualified investment costs or federal tax basis, limited by state certificates. Projects must invest at least $100 million in New York and use research facilities separate from manufacturing facilities. Approved businesses can claim credits for up to 10 consecutive tax years, with refunds paid without interest. Applicants must allow record access, share protected tax and labor information, and certify legal compliance under penalty of perjury. Certificates must accompany returns; owners claim only their proportional shares, costs cannot support another credit, and eligibility-based revocation requires repayment through tax.

Homeowners get notices about solicitation opt-outs

Property owners in established real estate solicitation zones can file a statement opting out of solicitation. The Secretary of State must post notice on the department's website. The state must also publish notice in a local general-circulation newspaper at least once each year. The Secretary must provide further notice considered necessary to make owners aware of the opt-out.

Small vending purchases stay sales-tax free

Qualifying vending-machine food, drinks, and bottled water remain exempt from sales tax through May 31, 2026. Purchases must cost $1.50 or less at machines accepting only coins or cash. At machines accepting other payment methods, the limit is $2.

More funding for problem gambling treatment

New York directs mobile sports wagering tax revenue to problem gambling education and treatment programs. Funding is $6 million each fiscal year through fiscal year 2026, then $12 million each fiscal year afterward. Spending requires a plan approved by the state budget director. The money supports services, not direct household payments.

Sports grants support underserved young people

For each fiscal year after fiscal year 2022, New York allocates $5 million from mobile sports wagering taxes to youth sports grants. Annual awards support sports programs serving underserved young people under age 18. The Office of Children and Family Services runs the statewide sports activities and education grant program. Grants go to programs, not directly to families.

Buffalo directs hotel taxes to improvements

Buffalo must direct 25% of hotel and motel tax revenue to downtown public-space and city-parking maintenance organizations and downtown safety efforts. The other 75% must fund capital improvements. Eligible projects include city-owned cultural facilities citywide, downtown public spaces, and city-owned professional sports venues. This directs local revenue rather than providing household payments.

Home race broadcasts get agreement extension

In-home race simulcast agreements for experiments begun before May 15, 1995, can continue through June 30, 2026. A party can end an agreement with at least 45 days' written notice to all other parties by registered mail. A party receiving notice can ask the commission to mediate replacement terms.

Race simulcast rules stay in place

Out-of-state and foreign harness-race simulcast rules continue through June 30, 2026. Through that date, specified facilities can show full-card foreign or out-of-state thoroughbred races outside Saratoga meeting days. Licensed facilities generally need a commission-approved horsemen's agreement; franchised corporations licensed under section 1007 are exempt. Separate thoroughbred simulcast rules apply on Saratoga meeting days through June 30, 2026, and regardless of meeting days afterward. Through September 8, 2025, specified facilities can show live out-of-state thoroughbred races during Saratoga meets while also taking wagers on every active in-state thoroughbred track. Racing Law section 1013 also remains in effect until July 1, 2026, rather than July 1, 2025; its substantive rules are not supplied.

Westchester racing keeps prize funding rule

Through June 30, 2026, a receiving track in Westchester County must keep using a specified share of covered receipts for race prizes. The rule applies to races received from a franchised corporation. The supplied text does not give the allocation formula or dollar amount.

Business tax credits continue through 2028

The law extends credits under Tax Law sections 187-b(2), 210-B(30)(b), and 606(p) through tax years beginning December 31, 2028. Related Labor Law section 25-b program credits cover taxable periods beginning before January 1, 2029. The supplied provisions do not state the credit amounts or underlying eligibility rules.

Chip suppliers gain expanded tax credits

Excelsior Jobs Program companies with semiconductor supply chain projects can claim three credits. The jobs credit covers up to 7% of gross wages for qualifying net new New York jobs. The investment credit covers up to 3% of qualified investment cost or federal tax basis. The research credit covers up to 7% of qualified research spending for work done in New York. Companies cannot claim prohibited overlapping investment credits for the same property in the same tax year.

City adjustment filers gain reporting time

Covered New York City taxpayers have 270 days after the law takes effect to report earlier alternative adjustment actions. The action's date follows the applicable federal adjustment, adjustment request, or alternative-payment election. Taxpayers can claim related overpayment refunds or credits within two years after the required report or amended return was due. Relief cannot exceed the tax reduction caused by the adjustment.

Companies face fewer estimated tax requirements

For tax years starting January 1, 2026, the corporate estimated-tax declaration threshold rises from $1,000 to $5,000. The prior-year tax threshold for the specified first installment also rises from more than $1,000 to more than $5,000. Related surcharge rules and specified New York S corporation installment rules use the higher threshold. Installment amounts still depend on whether prior-year tax exceeded $100,000. These changes do not lower tax rates.

Film producers can claim more costs

The Empire State film production credit includes story, script, and scenario costs and pay for writers, directors, composers, and performers. The former $500,000-per-person limit is removed. Pay for no more than two producers per film remains eligible, without the former producer cap or role restrictions. Costs must directly and predominantly support a qualified film's production.

Harness tracks get wagering tax caps

Beginning in state fiscal year 2026, each harness track's yearly pari-mutuel wagering tax has a cap. The ceiling equals the tax tied to that track's live-racing wagers in state fiscal year 2024. This limits tracks' tax bills; it does not provide a direct household benefit.

Historic housing projects gain credit access

Some historic rehabilitation projects no longer need to meet the credit's usual census-tract income location rule. This covers projects on state parks, historic sites, and other state-owned land under the state parks office. For tax years beginning January 1, 2026, qualifying affordable-housing rehabilitation projects also receive the location exception. Those housing projects need an authorized government agreement requiring at least 30 years of affordability and binding future owners.

Historic project owners can transfer credits

For tax years beginning January 1, 2026, taxpayers can transfer all or part of an allowed historic rehabilitation credit. Buyers need not own part of the project. The transfer requires prior state approval and a contract listing project details, service dates, credit amounts, and payment information. Buyers cannot transfer the acquired credit again. The original taxpayer remains responsible for the credit's duties and liabilities.

Lackawanna developers gain brownfield tax credits

A qualifying Renaissance Commerce Park site in Lackawanna gains access to specified brownfield redevelopment and remediated-site credits. It needs a cleanup agreement before June 23, 2008, a completion certificate by December 31, 2017, and no property placed in service when this law took effect. Redevelopment credits cover site preparation and on-site groundwater costs through the service year plus seven years. Tangible-property costs qualify through the service year plus 10 years, or 120 months, when property enters service before the 2036 tax year. The remediated-site credit lasts 10 consecutive tax years starting no later than the 2036 tax year; a later developer buyer must acquire the site by that tax year.

Local governments gain payroll tax exemption

For tax quarters starting July 1, 2025, qualifying zone-two local government employers do not owe the employer payroll mobility tax. The exemption applies when their covered employees are in zone two of the Metropolitan Commuter Transportation District. The law does not direct how local governments use the savings.

More bond-financed housing qualifies for credits

Qualifying low-income buildings financed with certain refunded bonds can receive New York's low-income housing tax credit. The bonds must follow federal refunded-bond rules, and buildings must meet the applicable federal housing-credit rules. This expands project eligibility, not a direct payment to renters.

More film companies qualify as independent

The law removes the $15 million film-budget limit for qualified independent film production companies. It also removes the requirement that the company control the film during production. The company must mainly produce a qualified film and cannot be publicly traded. It also cannot be at least 51% owned by a company traded on a U.S. stock exchange.

Qualifying casinos keep lower slot taxes

From April 1, 2026, through June 30, 2031, qualifying zone-two gaming facilities keep the preceding fiscal year's slot-revenue tax rate. This replaces the otherwise specified rate. Facilities must be current on state obligations or comply with a state repayment agreement and submit an initial employment-goals report. The Gaming Commission can remove the lower rate for periods when a facility fails the obligations test.

Racing operators keep tax reductions longer

Specified pari-mutuel tax reductions remain in place until July 1, 2026, instead of expiring July 1, 2025. The extension benefits affected racing and wagering operators. The supplied provision does not state the reduced rates or total savings.

Regional film credits continue through 2036

Additional regional film production and post-production wage credits continue through 2036 instead of ending in 2034. Productions must meet the listed-county, film, budget, and location requirements. The additional post-production credit equals 10% of qualifying wages for films with budgets of at least $500,000. It covers directly employed post-production workers in listed counties. Writers, directors, composers, producers, and performers are excluded, except background actors without scripted lines.

Repeat film producers gain extra credits

Production Plus gives accepted film companies extra credits after at least two initial applications submitted after January 1, 2025. Applications can come from the company or film companies it majority-owns. Supporting applications totaling at least $100 million in qualified New York costs unlock a 10% additional credit. Qualified independent companies reach a 5% credit on later feature films, television films, or series with $20 million in supporting costs. Initial feature-film and new-series applications after December 31, 2028 are excluded, but series entering before January 1, 2029 can continue.

Semiconductor suppliers gain business credit access

Qualifying semiconductor supply-chain companies can join the New York Excelsior Jobs Program. Companies must work in listed eligible industries, and the state must find their projects mainly support semiconductor manufacturing or its equipment and material suppliers. Projects centered on general manufacturing inputs that are not direct semiconductor inputs are excluded. Projects offering only marginal, incremental semiconductor benefits and Green CHIPS projects are also excluded from this expansion.

Auburn and Buffalo can tax lodging

The law authorizes Auburn to tax lodging up to 5% and Buffalo up to 3% of the daily room rate. Each city must pass a local law before charging the tax. Both exclude permanent residents staying at least 90 consecutive days and specified exempt organizations or transactions. Each Auburn tax law lasts no more than two years, and its authority ends December 31, 2027. Auburn's receipts go to its general fund; Buffalo's authority has no stated end date.

Tax claimants cannot reach transit funds

Beginning April 1, 2026, claimants cannot reach MTA Dedicated Tax Fund money for covered tax refunds, rebates, credits, or reimbursements. The bar covers petroleum business and sales taxes under Tax Law articles 13-A and 28. It also bars the specified claims against the MTA, its bondholders, transit authorities, and commuter railroads. The restriction applies to businesses, other people, and the State.

Tax portal access brings no hearing

Viewing information in a New York tax department system does not, by itself, create a right to a tax appeals hearing. This rule excludes electronic notices formally sent instead of mailed notices under the state's electronic communication law. Hearing and protest rights expressly granted by another law remain available.

Unreported federal adjustments extend tax exposure

The Tax Commissioner can assess tax at any time when required federal-adjustment reports are not filed. Late reporting or payment allows the Commissioner to use the best available information. After a required report is filed, an adjustment-related assessment generally has a two-year limit and covers only the resulting tax increase. An additional-tax notice becomes assessed after 30 days unless the taxpayer timely files the specified report or amended return explaining the error.

Late business reports bring monthly penalties

Late or incomplete partnership and S corporation reports carry a $50 monthly penalty per partner or shareholder subject to New York tax. Each month or part of a month counts, up to five months. Trusts face $150 per month for filing failures, capped at $1,500 per tax year. Reasonable cause without willful neglect excuses these penalties.

Partnership owners face tax reporting deadlines

A partnership's federal representative also serves New York unless replaced as state rules direct; that representative's actions bind all partners. Partnerships must report federal adjustments within 90 days of final determination, or 90 days after filing an adjustment request. The default process also requires partner notices, required returns, and payments within 90 days of final determination, subject to a small-adjustment exception. Direct and indirect partners must report applicable changes; tiered partners generally report and pay within 90 days after the federal partner-statement deadline. Affected New York City taxpayers and partners must report alternative adjustment actions within 90 days, even without tax impact; electronic filing and enforcement can apply.

Racing board appointees need industry ties

Beginning January 1, 2026, seven covered New York Racing Association board positions require racing or breeding qualifications upon appointment or reappointment. Options include registered breeder status, managing a licensed New York ownership syndicate, or a demonstrated interest in state racing and breeding. Horse ownership or training also qualifies with an average of 15 New York starts yearly over the prior three years. Members already serving on January 1, 2026 are unaffected.

Racing board members need free licenses

Beginning January 1, 2026, franchised racing corporation board members who are not publicly appointed must hold a racing license. The license has no fee and lasts for the member's board service.

Racing corporations keep breeding fund payments

Franchised racing corporations must continue paying 0.7% of regular, multiple, and exotic betting pools to the state thoroughbred fund. The temporary rate continues through December 31, 2026, instead of ending December 31, 2025. The fund supports thoroughbred breeding and development.

Casinos risk higher taxes over jobs

Zone-two casinos receiving the lower slot tax rate must submit quarterly and annual full-time job goals by January 1, 2026. Annual January 1 reports must explain use of the tax savings and confirm whether employment goals were met. A Gaming Commission finding that a casino failed its plan can raise its slot tax by 2 to 10 percentage points. Employment shortfalls above 50% trigger a 10-point increase. These requirements run through June 30, 2031.

City tax disputes can include adjustments

Reportable alternative adjustment actions can support certain New York City deficiency notices even after a taxpayer petitions the Tax Appeals Tribunal. The Commissioner can also increase a deficiency after mailing a notice when the adjustment was unknown at mailing. This expands the adjustments considered in covered tax disputes.

Employer training credits end after 2028

The Employee Training Incentive Program credit is limited to tax years beginning before January 1, 2029. Before that cutoff, approved employers receive 50% of eligible training costs, capped at $10,000 per employee. Eligible intern stipends receive a 50% credit, capped at $3,000 per intern. Employees or interns must complete eligible training, and claims cannot exceed the employer's state-issued credit certificate.

Film producers face facility shooting minimum

Films must shoot at least 10% of their principal-photography days at a qualified film production facility to qualify for the credit. Qualified independent film production companies and pilots are exempt from this requirement.

Racing corporations keep paying wager taxes

Covered franchised racing corporations continue paying 1.6% of wagers, plus 20% of breaks, the payout-rounding amounts. The law extends this tax through December 31, 2026, from its prior December 31, 2025 end date. It applies to corporations conducting pari-mutuel betting at race meetings. The text does not establish whether bettors bear any added cost.

Racing operators pay taxes and fees

Beginning September 1, 2025, authorized pari-mutuel operators, including regional off-track betting corporations, pay 0.7% of all money wagered. Covered multi-jurisdictional account-wagering providers also owe an additional 1% on New York residents' wagers to the state General Fund. Beginning September 1, qualifying first-zone simulcasts require franchised racing corporations to pay 1% of receiving-facility wagers to New York City. When the qualifying receiving facility crosses city and county boundaries, the payment splits into 0.5% for each local government. These charges fall on operators; the law does not specify costs passed to bettors.

Revoked film credits trigger tax repayment

Film production and post-production taxpayers must repay claimed credits when the state finally revokes certificates for failing eligibility requirements. They add the previously claimed amount back to tax in the year the revocation becomes final.

Wagering providers pay higher racing fees

Covered multi-jurisdictional account-wagering providers pay 5.45% on wagers from New York residents, up from 5%. The share of fee receipts returned as racing-sector credits falls from 90% to 82.6%. Of total receipts, 36.7% goes to regional off-track betting corporations and 45.9% to racing associations and corporations. Credits use receipts from the prior month's 16th through the current month's 15th. The share transferred to the Tax Department as pari-mutuel tax payment rises from 5% to 12.8%; the law does not state any customer charge.

Winning race bets use penny payouts

Beginning September 1, 2025, winning pari-mutuel ticket payouts must be calculated to the nearest penny. The law bans keeping payout amounts through rounding, called breakage, unless another jurisdiction requires it. Racetracks may still round bets made at their facilities to the nearest nickel. Resulting rounding amounts must go to the aftercare fund for retired and rescued thoroughbred or standardbred horses, as applicable.

Federal adjustment refunds get special deadlines

Covered federal-adjustment refund claims use the later of the ordinary deadline or one year after the adjustment report was due. Both deadlines include extensions. Claims for overpayments from reportable federal changes also face a two-year deadline after the change had to be reported. Refunds cannot exceed the tax reduction caused by the adjustment. Missing the required 90-day reporting deadline means no interest on the overpayment.

Homeowner school tax credit calculation changes

The STAR school tax credit uses taxes levied or scheduled for the residence's associated fiscal year. It no longer uses taxes actually paid during the taxpayer's tax year. Qualifying taxes include school taxes and applicable combined city and school taxes, but exclude penalties and interest. The definition also covers eligible cooperative-apartment tenant-stockholders; its effect depends on each taxpayer's tax timing.

Homeowners face new STAR income date

Beginning January 1, 2026, STAR credit income checks use resident owners and their spouses as of July 1. This replaces the December 31 household reference date. Changes in ownership or marriage between those dates can change whose income counts.

Homeowners get deadlines to defend STAR

Homeowners have 45 days after a STAR ineligibility notice is mailed to show they qualify. The exemption is denied or removed if they do not respond or do not establish eligibility. Owners can challenge the decision with the tax department. They then have 45 days after its final decision to appeal to the state property-tax board. Court review is also available.

Farm credit records gain disclosure protections

Beginning January 1, 2026, state agriculture and tax employees can share information relevant to farm-credit eligibility and claims. Specified records collected by Agriculture and Markets and exchanged under this rule are exempt from public disclosure under New York's Freedom of Information Law.

Partnership adjustment reporting gets extra time

The Commissioner can extend federal-adjustment reporting deadlines by written agreement. Impacted partnerships or tiered partners with at least 10,000 direct partners get 60 extra days by giving written notice. A reporting extension also extends related assessment and refund-claim periods. Covered adjustments determined or requested before the law's effective date get a one-year reporting transition, without interest during that period. The supplied provision does not identify that effective date.

Partnership audit payments can limit interest

Impacted partnerships can make estimated New York payments while an IRS audit is pending, limiting further interest. Except for specified statutory estimated payments, an irrevocable election must accompany payment. Payments count toward the final bill; excess amounts require a report or refund claim within one year after final determination. The Commissioner can also create a small-adjustment exemption from specified reporting and payment duties through regulations. The law itself sets no exemption amount.

Partnerships can pay owners' audit taxes

Impacted partnerships can elect to pay New York tax in place of their direct and indirect partners after federal adjustments. They must report and give election notice within 90 days after final determination, then pay within 180 days. The calculation includes specified partners' New York-apportioned shares multiplied by the highest applicable corporate tax rate for the reviewed year. Partnerships and tiered partners can request different reporting or payment arrangements during the election period, subject to Commissioner approval. Alternatives must protect payment of tax, penalties, and interest, or secure partners' agreement to entity refunds; elections are irrevocable unless the Commissioner allows withdrawal.

Capital betting operator gains restricted funds

From April 1, 2025, through March 31, 2026, Capital Off-Track Betting can use $1 million from its capital acquisition fund. Money can cover authorized wagering costs and specified overdue bills to racing entities, signal providers, breeding and research funds, and the state. The corporation must certify that surcharge money is kept separate and paid to localities as required. It needs a Gaming Commission-approved spending plan and must report spending by the last day of the calendar year requested. Spending outside the approved plan must be repaid to the fund.

Horse injury research funds affordable screening

New York funds a three-year Cornell-led thoroughbred injury study, limited to agreement expenses, with December 1 updates and a final report. The franchised racing corporation must contribute $2 million by September 1, 2025, held in escrow solely for research equipment. Enrolled horses get free screening and advanced imaging. Other horses stabled in New York for four of the previous six months can receive available services at no more than actual cost, without Cornell Ruffian interpreting their images. The research provisions end September 1, 2028.

State repeals an economic development article

The law repeals Article 22 of New York's Economic Development Law. The supplied text does not identify the programs or duties it contained. Its effects on businesses, households, and state costs cannot be determined from this provision.

Smaller film credits fund job training

Each independent film production credit is reduced by 0.5%. The economic development commissioner reports the total reductions for the previous calendar year. By March 31 each year, the Comptroller transfers an equal amount to the Empire State Entertainment Diversity Job Training Development Fund. The transfer comes from the General Fund and does not require a separate appropriation.

Extra film credits support local spending

Qualifying film producers get an extra 10% credit for New York scoring costs that pay at least five musicians. Independent films also get 10% credits on qualifying production costs in listed counties. Those county credits require budgets of at least $500,000 and most principal filming days in listed counties. Eligible pay for specified independent-film writers, directors, composers, producers, and performers is capped at 40% of other qualified costs. Unused annual film-credit allocation capacity can move to later years, without guaranteeing any applicant an award.

Film editing credits expand with limits

Post-production work other than visual effects and animation qualifies at $1 million or 75% of applicable costs, whichever is less. Visual effects and animation qualify at $500,000 or 10% of applicable costs, whichever is less; claiming both categories requires both tests. Costs must be incurred at a qualified facility. Original-content work in New York includes picture, sound, and music editing, mixing, visual effects, graphic design, scoring, animation, and composition, but editing previously produced content is excluded. For initial applications filed on or after January 1, 2025, the full credit is claimed in the completion year rather than over two or three years.

Film producers get allocation-year claim rules

For film production credit applications received on or after January 1, 2025, claims follow the state's allocation year. Taxpayers claim in the tax year containing that allocation year's last day. This rule also applies to Additional Pool 2 films with initial applications filed on or after January 1, 2025. It changes claim timing, not the credit amount.

Genesee track fees support employee costs

From June 1, 2025, through April 1, 2030, the covered Genesee County track pays 56% of wagering revenue after prizes. Coverage applies to the specified track within 40 miles of a Native American class III gaming facility. Within that total, an additional 5% must be separately tracked for employee healthcare, compensation, staffing, or local distributions. This money must add to existing support, not replace it. Allocation plans and annual reports are required, and the Gaming Commission can audit and penalize misuse.

Independent filmmakers gain credits with conditions

Eligible independent filmmakers get a credit generally worth 30% of qualified costs in the production-completion year, for up to two films yearly. Minimum budgets are $1 million in New York City, Westchester, Rockland, Nassau, or Suffolk, and $250,000 elsewhere; nonlabor costs face a $60 million limit. At least 75% of specified costs must involve a qualified facility; below $3 million in facility costs, outside costs require 75% of relevant shooting days in New York. Companies must include state promotional material or specified end credits and buy qualifying taxable items only from registered sales-tax sellers. Corporate claimants retain their fixed-dollar minimum tax, but excess credits are refundable or creditable without interest.

Manufacturer training credits require detailed records

Beginning January 1, 2025, approved manufacturers get credits covering 75% of eligible compensation, training costs, and support services. Limits are $25,000 per trained employee, $1 million per non-semiconductor business, $5 million per semiconductor business, and $20 million yearly statewide. Businesses must meet worker, environmental, and tax requirements, obtain certificates after training, and claim credits in the completion year. They must share protected information, allow record access, report training outcomes and one-year job retention, and keep records three years after leaving. Excess credits are refundable without interest; owners claim proportional shares, costs cannot support another credit, and eligibility-based certificate revocation requires tax repayment.

Revised sales-tax rules cover older returns

Revised Article 28 sales-tax return rules apply to returns filed or amended on or after December 1, 2024. Returns no longer need to cover periods beginning on or after that date. The law treats this change as in force beginning April 20, 2024. The supplied text does not establish whether an affected taxpayer owes more or less.

Sponsors & Cosponsors

Sponsor

  • Budget

    Affiliation unavailable

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 138 • No: 73

Senate vote • 5/8/2025

FLOOR Vote

Yes: 35 • No: 27

House vote • 5/8/2025

Assembly floor vote

Yes: 103 • No: 46

Actions Timeline

  1. SIGNED CHAP.59

    5/9/2025House

  2. DELIVERED TO GOVERNOR

    5/8/2025House

  3. RETURNED TO ASSEMBLY

    5/8/2025Senate

  4. PASSED SENATE

    5/8/2025Senate

  5. MESSAGE OF NECESSITY - 3 DAY MESSAGE

    5/8/2025Senate

  6. 3RD READING CAL.974

    5/8/2025Senate

  7. SUBSTITUTED FOR S3009C

    5/8/2025Senate

  8. REFERRED TO FINANCE

    5/8/2025Senate

  9. DELIVERED TO SENATE

    5/8/2025House

  10. PASSED ASSEMBLY

    5/8/2025House

  11. MESSAGE OF NECESSITY - 3 DAY MESSAGE

    5/8/2025House

  12. ORDERED TO THIRD READING RULES CAL.184

    5/8/2025House

  13. RULES REPORT CAL.184

    5/8/2025House

  14. REPORTED

    5/8/2025House

  15. REPORTED REFERRED TO RULES

    5/8/2025House

  16. PRINT NUMBER 3009C

    5/7/2025House

  17. AMEND (T) AND RECOMMIT TO WAYS AND MEANS

    5/7/2025House

  18. PRINT NUMBER 3009B

    3/10/2025House

  19. AMEND (T) AND RECOMMIT TO WAYS AND MEANS

    3/10/2025House

  20. PRINT NUMBER 3009A

    2/21/2025House

  21. AMEND (T) AND RECOMMIT TO WAYS AND MEANS

    2/21/2025House

  22. REFERRED TO WAYS AND MEANS

    1/22/2025House

Bill Text

  • Amendment C

    5/7/2025

    PDF

  • Amendment B

    3/10/2025

    PDF

  • Amendment A

    2/21/2025

    PDF

  • Original

    1/22/2025

    PDF

Related Bills

Back to State Legislation