[ ] is old law to be omitted.
LBD12674-04-6
A. 10009--B 2
58 of the laws of 2024 amending the tax law relating to establishing a
sales tax exemption for residential energy storage, in relation to
extending the residential energy storage exemption for two years (Part
Q); to amend the tax law, in relation to the petroleum business tax
filing deadline for commercial vessel operators (Part R); to amend
chapter 109 of the laws of 2006 amending the tax law and other laws
relating to providing exemptions, reimbursements and credits from
various taxes for certain alternative fuels, in relation to extending
the alternative fuels tax exemptions (Part S); to amend the real prop-
erty tax law and the tax law, in relation to making technical
corrections to the STAR exemption and STAR credit programs; and to
repeal certain provisions of the real property tax law relating there-
to (Part T); to amend chapter 475 of the laws of 2013 amending the
real property tax law relating to assessment ceilings for local public
utility mass real property, in relation to extending the assessment
ceiling for local public utility mass real property to January 1, 2031
(Part U); intentionally omitted (Part V); to amend the racing, pari-
mutuel wagering and breeding law, in relation to conforming pari-mutu-
el tax provisions (Part W); to amend the racing, pari-mutuel wagering
and breeding law, in relation to extending the utilization of funds in
the Capital off-track betting corporations' capital acquisition funds
(Part X); to amend the racing, pari-mutuel wagering and breeding law,
in relation to licenses for simulcast facilities, sums relating to
track simulcast, simulcast of out-of-state thoroughbred races, simul-
casting of races run by out-of-state harness tracks and distributions
of wagers; and to amend chapter 346 of the laws of 1990 amending the
racing, pari-mutuel wagering and breeding law and other laws relating
to simulcasting and the imposition of certain taxes, in relation to
the effectiveness thereof (Part Y); to amend the racing, pari-mutuel
wagering and breeding law, in relation to extending certain seasonal
employee licensing requirements for additional race dates at Saratoga
Racetrack (Part Z); to amend the tax law, in relation to providing for
a middle-class tax cut and increasing the temporary personal income
high income surcharge; and to repeal certain provisions of such law
relating thereto (Part AA); to amend the tax law, in relation to the
protecting our wallets energy rebate program (Part BB); to amend the
tax law, in relation to establishing a credit against the tax on
personal income (Part CC); to amend the tax law, in relation to estab-
lishing small business savings accounts (Part DD); to amend the tax
law, in relation to increasing the current small business subtraction
modification (Part EE); to amend the tax law, in relation to estab-
lishing a tax credit for certain food donations to qualified communi-
ty-based organizations (Part FF); to amend the tax law, in relation to
increasing tax credits for donations to food pantries by farmers (Part
GG); to amend the tax law and the parks, recreation and historic pres-
ervation law, in relation to extending the historic homeownership
rehabilitation tax credit and requiring additional reporting (Part
HH); to amend the tax law, in relation to imposing an excise tax on
energy used in digital asset mining using proof-of-work authentication
methods (Part II); to amend the real property tax law, in relation to
providing for a vacancy surcharge on vacant and abandoned property in
cities (Part JJ); to amend the tax law, in relation to exempting from
sales tax certain tangible personal property and services (Part KK);
to amend the tax law, the public service law and the labor law, in
relation to establishing a sales tax exemption for energy storage; and
providing for the repeal of certain provisions upon expiration thereof
A. 10009--B 3
(Part LL); to repeal section 490 of the tax law relating to the excise
tax on medical cannabis; and to repeal section 89-h of the state
finance law relating to the medical cannabis trust fund (Part MM); to
amend the racing, pari-mutuel wagering and breeding law, in relation
to standardbred testing (Part NN); to amend the tax law and the admin-
istrative code of the city of New York, in relation to decreasing the
amount of the credit allowed for the city pass-through entity tax
against the city personal income tax (Part OO); to amend chapter 772
of the laws of 1966 relating to enabling any city having a population
of one million or more to raise tax revenue; and to amend the adminis-
trative code of the city of New York, in relation to increasing tax
rates imposed on unincorporated businesses and corporations in the
city of New York (Part PP); and to amend the tax law and the adminis-
trative code of the city of New York, in relation to increasing the
rate of tax on certain conveyances of real property, transfers of
leasehold interests, and transfers of controlling economic interests
in real property in the city of New York (Part QQ)
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. This act enacts into law major components of legislation
which are necessary to implement the state fiscal plan for the 2026-2027
state fiscal year. Each component is wholly contained within a Part
identified as Parts A through QQ. The effective date for each particular
provision contained within such Part is set forth in the last section of
such Part. Any provision in any section contained within a Part,
including the effective date of the Part, which makes a reference to a
section "of this act", when used in connection with that particular
component, shall be deemed to mean and refer to the corresponding
section of the Part in which it is found. Section three of this act sets
forth the general effective date of this act.
PART A
Section 1. Paragraph 1 of subsection (c) of section 606 of the tax
law, as amended by section 1 of part M of chapter 63 of the laws of
2000, is amended to read as follows:
(1) [A] FOR TAXABLE YEARS BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND
TWENTY-SIX, A taxpayer shall be allowed a credit as provided herein
equal to the applicable percentage of the credit allowable under section
twenty-one of the internal revenue code for the same taxable year (with-
out regard to whether the taxpayer in fact claimed the credit under such
section twenty-one for such taxable year). The applicable percentage
shall be the sum of (i) twenty percent and (ii) a multiplier multiplied
by a fraction. For taxable years beginning in nineteen hundred ninety-
six and nineteen hundred ninety-seven, the numerator of such fraction
shall be the lesser of (i) four thousand dollars or (ii) fourteen thou-
sand dollars less the New York adjusted gross income for the taxable
year, provided, however, the numerator shall not be less than zero. For
the taxable year beginning in nineteen hundred ninety-eight, the numera-
tor of such fraction shall be the lesser of (i) thirteen thousand
dollars or (ii) thirty thousand dollars less the New York adjusted gross
income for the taxable year, provided, however, the numerator shall not
be less than zero. For taxable years beginning in nineteen hundred nine-
A. 10009--B 4
ty-nine, the numerator of such fraction shall be the lesser of (i)
fifteen thousand dollars or (ii) fifty thousand dollars less the New
York adjusted gross income for the taxable year, provided, however, the
numerator shall not be less than zero. For taxable years beginning after
nineteen hundred ninety-nine, the numerator of such fraction shall be
the lesser of (i) fifteen thousand dollars or (ii) sixty-five thousand
dollars less the New York adjusted gross income for the taxable year,
provided, however, the numerator shall not be less than zero. The denom-
inator of such fraction shall be four thousand dollars for taxable years
beginning in nineteen hundred ninety-six and nineteen hundred ninety-
seven, thirteen thousand dollars for the taxable year beginning in nine-
teen hundred ninety-eight, and fifteen thousand dollars for taxable
years beginning after nineteen hundred ninety-eight. The multiplier
shall be ten percent for taxable years beginning in nineteen hundred
ninety-six, forty percent for taxable years beginning in nineteen
hundred ninety-seven, and eighty percent for taxable years beginning
after nineteen hundred ninety-seven. Provided, however, for taxable
years beginning after nineteen hundred ninety-nine, for a person whose
New York adjusted gross income is less than forty thousand dollars, such
applicable percentage shall be equal to (i) one hundred percent, plus
(ii) ten percent multiplied by a fraction whose numerator shall be the
lesser of (i) fifteen thousand dollars or (ii) forty thousand dollars
less the New York adjusted gross income for the taxable year, provided
such numerator shall not be less than zero, and whose denominator shall
be fifteen thousand dollars. Provided, further, that if the reversion
event, as defined in this paragraph, occurs, the applicable percentage
shall, for taxable years ending on or after the date on which the rever-
sion event occurred, be determined using the rules specified in this
paragraph applicable to taxable years beginning in nineteen hundred
ninety-nine. The reversion event shall be deemed to have occurred on the
date on which federal action, including but not limited to, administra-
tive, statutory or regulatory changes, materially reduces or eliminates
New York state's allocation of the federal temporary assistance for
needy families block grant, or materially reduces the ability of the
state to spend federal temporary assistance for needy families block
grant funds for the credit for certain household and dependent care
services necessary for gainful employment or to apply state general fund
spending on the credit for certain household and dependent care services
necessary for gainful employment toward the temporary assistance for
needy families block grant maintenance of effort requirement, and the
commissioner of the office of temporary and disability assistance shall
certify the date of such event to the commissioner, the director of the
division of the budget, the speaker of the assembly and the temporary
president of the senate.
§ 2. Section 606 of the tax law is amended by adding a new subsection
(c-2) to read as follows:
(C-2) NEW YORK STATE CHILD AND DEPENDENT CARE CREDIT. (1) FOR TAXABLE
YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND TWENTY-SIX, AN
ELIGIBLE TAXPAYER SHALL BE ALLOWED A CREDIT AS PROVIDED HEREIN TO ENABLE
THE ELIGIBLE TAXPAYER TO BE GAINFULLY EMPLOYED OR A FULL-TIME STUDENT AT
AN EDUCATIONAL INSTITUTION FOR ANY PERIOD OF THE TAXABLE YEAR. IF THE
AMOUNT OF THE CREDIT ALLOWED UNDER THIS SUBSECTION FOR ANY TAXABLE YEAR
SHALL EXCEED THE ELIGIBLE TAXPAYER'S TAX FOR SUCH YEAR, THE EXCESS SHALL
BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED OR REFUNDED IN
ACCORDANCE WITH THE PROVISIONS OF SIX HUNDRED EIGHTY-SIX OF THIS ARTI-
CLE, PROVIDED, HOWEVER, THAT NO INTEREST SHALL BE PAID THEREON.
A. 10009--B 5
(2) FOR THE PURPOSES OF THIS SUBSECTION:
(A) "ELIGIBLE TAXPAYER" SHALL MEAN A RESIDENT INDIVIDUAL AS DEFINED IN
PARAGRAPH ONE OF SUBSECTION (B) OF SECTION SIX HUNDRED FIVE OF THIS
ARTICLE WHO, DURING THE TAXABLE YEAR: (I) IS NOT A DEPENDENT OF ANOTHER
TAXPAYER PURSUANT TO SECTION ONE HUNDRED FIFTY-TWO OF THE INTERNAL
REVENUE CODE; AND (II) IS NOT A RESIDENT MARRIED INDIVIDUAL FILING A
SEPARATE RETURN UNLESS SUCH INDIVIDUAL MEETS THE CONDITIONS IN PARAGRAPH
FOUR OF SUBDIVISION (E) OF SECTION TWENTY-ONE OF THE INTERNAL REVENUE
CODE. PROVIDED, HOWEVER, WHERE MARRIED INDIVIDUALS FILE A JOINT FEDERAL
RETURN, BUT ARE REQUIRED TO DETERMINE THEIR NEW YORK TAXES SEPARATELY
PURSUANT TO SUBSECTION (B) OF SECTION SIX HUNDRED FIFTY-ONE OF THIS
ARTICLE, THE CREDIT ALLOWED PURSUANT TO THIS SUBSECTION MAY ONLY BE
APPLIED AGAINST THE TAX IMPOSED ON THE SPOUSE WITH THE LOWER NEW YORK
ADJUSTED GROSS INCOME.
(B) "QUALIFYING INDIVIDUAL" SHALL MEAN AN INDIVIDUAL WHO: (I) IS UNDER
THE AGE OF THIRTEEN AT THE CLOSE OF THE TAXABLE YEAR OR IS PHYSICALLY OR
MENTALLY INCAPABLE OF CARING FOR THEMSELVES DURING THE TAXABLE YEAR;
(II) RESIDES WITH THE ELIGIBLE TAXPAYER FOR MORE THAN ONE-HALF OF THE
TAXABLE YEAR; AND (III) IS CLAIMED AS A DEPENDENT PURSUANT TO SECTION
ONE HUNDRED FIFTY-TWO OF THE INTERNAL REVENUE CODE, OR COULD OTHERWISE
BE CLAIMED AS A DEPENDENT. PROVIDED, A QUALIFYING INDIVIDUAL SHALL ALSO
INCLUDE AN INDIVIDUAL WHERE A NONCUSTODIAL PARENT CLAIMS SUCH INDIVIDUAL
UNDER SUBSECTION (E) OF SECTION ONE HUNDRED FIFTY-TWO OF THE INTERNAL
REVENUE CODE OR THE INDIVIDUAL IS THE ELIGIBLE TAXPAYER'S SPOUSE WHO IS
PHYSICALLY OR MENTALLY INCAPABLE OF CARING FOR THEMSELVES DURING THE
TAXABLE YEAR AND RESIDES WITH THE ELIGIBLE TAXPAYER FOR MORE THAN ONE-
HALF OF THE TAXABLE YEAR.
(C) "EARNED INCOME" SHALL MEAN THE WAGES, SALARIES, TIPS AND OTHER
EMPLOYEE COMPENSATION, AND THOSE ITEMS OF GROSS INCOME WHICH ARE INCLU-
DIBLE IN THE COMPUTATION OF NET EARNINGS FROM SELF-EMPLOYMENT.
(D) (I) "QUALIFYING EXPENSES" SHALL MEAN THE SUM OF THE AMOUNT
INCURRED AND PAID IN THE TAXABLE YEAR DIRECTLY BY AN ELIGIBLE TAXPAYER
FOR: A. SERVICES PROVIDED IN AND ABOUT THE ELIGIBLE TAXPAYER'S RESI-
DENCE TO PROVIDE CARE FOR ANY QUALIFYING INDIVIDUAL, INCLUDING SUCH
EXPENSES FOR THE ROOM AND BOARD OF ANY SUCH CAREGIVER; AND B. NON-OVER-
NIGHT SERVICES PROVIDED OUTSIDE OF THE ELIGIBLE TAXPAYER'S RESIDENCE TO
PROVIDE CARE FOR ANY QUALIFYING INDIVIDUAL; PROVIDED, HOWEVER, THAT
AMOUNTS INCURRED OR PAID FOR WHICH THE PRIMARY PURPOSE IS EDUCATIONAL
SHALL NOT BE INCLUDED.
(II) PROVIDED, HOWEVER, "QUALIFYING EXPENSES" SHALL NOT INCLUDE: A.
ANY AMOUNTS PAID WHEREBY THE TAXPAYER RECEIVES REIMBURSEMENT OR ARE PAID
FROM FUNDS PROVIDED BY A GOVERNMENT ENTITY, DEPENDENT CARE ACCOUNT, OR
OTHER THIRD PARTY; B. ANY AMOUNTS PAID TO A DEPENDENT OF THE TAXPAYER
FOR WHICH THE TAXPAYER OR THE TAXPAYER'S SPOUSE IS ENTITLED TO A
DEDUCTION FOR THE TAXABLE YEAR UNDER SUBSECTION (C) OF SECTION ONE
HUNDRED FIFTY-ONE OF THE INTERNAL REVENUE CODE; OR C. ANY AMOUNTS PAID
TO A CHILD OF THE TAXPAYER AS DEFINED IN PARAGRAPH ONE OF SUBSECTION (F)
OF SECTION ONE HUNDRED FIFTY-TWO OF THE INTERNAL REVENUE CODE WHO HAS
NOT ATTAINED THE AGE OF NINETEEN AT THE CLOSE OF THE TAXABLE YEAR.
(III) FOR THE PURPOSES OF THE CREDIT PROVIDED PURSUANT TO THIS
SUBSECTION, AN ELIGIBLE TAXPAYER'S QUALIFYING EXPENSES SHALL NOT EXCEED:
A. THREE THOUSAND DOLLARS, IN THE CASE OF AN ELIGIBLE TAXPAYER WITH
ONE QUALIFYING INDIVIDUAL;
B. SIX THOUSAND DOLLARS, IN THE CASE OF AN ELIGIBLE TAXPAYER WITH TWO
QUALIFYING INDIVIDUALS;
A. 10009--B 6
C. SEVEN THOUSAND FIVE HUNDRED DOLLARS, IN THE CASE OF AN ELIGIBLE
TAXPAYER WITH THREE QUALIFYING INDIVIDUALS;
D. EIGHT THOUSAND FIVE HUNDRED DOLLARS, IN THE CASE OF AN ELIGIBLE
TAXPAYER WITH FOUR QUALIFYING INDIVIDUALS; AND
E. NINE THOUSAND DOLLARS, IN THE CASE OF AN ELIGIBLE TAXPAYER WITH
FIVE OR MORE QUALIFYING INDIVIDUALS.
PROVIDED, FURTHER, THAT AN ELIGIBLE TAXPAYER'S QUALIFYING EXPENSES
SHALL NOT EXCEED SUCH ELIGIBLE TAXPAYER'S EARNED INCOME AS DEFINED IN
SUBPARAGRAPH (C) OF THIS PARAGRAPH, OR IN THE CASE OF A MARRIED ELIGIBLE
TAXPAYER FILING A JOINT RETURN, THE LESSER OF THE EARNED INCOME OF EACH
SPOUSE DETERMINED SEPARATELY.
(E) "APPLICABLE PERCENTAGE" SHALL MEAN: (I) FIFTY-FIVE PERCENT IN THE
CASE OF AN ELIGIBLE TAXPAYER WITH A NEW YORK ADJUSTED GROSS INCOME
DETERMINED PURSUANT TO SECTION SIX HUNDRED TWELVE OF THIS ARTICLE OF
FIFTEEN THOUSAND DOLLARS OR LESS; OR (II) FIFTY-FIVE PERCENT REDUCED BY
TWENTY-FIVE HUNDRED THOUSANDTHS OF A PERCENTAGE POINT FOR EACH DOLLAR OF
AN ELIGIBLE TAXPAYER'S NEW YORK ADJUSTED GROSS INCOME DETERMINED PURSU-
ANT TO SECTION SIX HUNDRED TWELVE OF THIS ARTICLE IN EXCESS OF FIFTEEN
THOUSAND DOLLARS. PROVIDED, HOWEVER, THAT THE APPLICABLE PERCENTAGE FOR
AN ELIGIBLE TAXPAYER SHALL NOT BE REDUCED BELOW FOUR PERCENT.
(3) THE AMOUNT OF THE CREDIT ALLOWED TO AN ELIGIBLE TAXPAYER UNDER
THIS SUBSECTION SHALL BE THE PRODUCT OF THE ELIGIBLE TAXPAYER'S QUALIFY-
ING EXPENSES DETERMINED PURSUANT TO SUBPARAGRAPH (D) OF PARAGRAPH TWO OF
THIS SUBSECTION AND THE APPLICABLE PERCENTAGE DETERMINED PURSUANT TO
SUBPARAGRAPH (E) OF PARAGRAPH TWO OF THIS SUBSECTION.
(4) TO BE ELIGIBLE FOR THE CREDIT PROVIDED BY THIS SUBSECTION, AN
ELIGIBLE TAXPAYER SHALL PROVIDE THE FOLLOWING INFORMATION TO THE SATIS-
FACTION OF THE COMMISSIONER: (I) THE AMOUNT OF QUALIFYING EXPENSES; (II)
IDENTIFYING INFORMATION RELATED TO THE CARE PROVIDER; (III) IDENTIFYING
INFORMATION RELATED TO THE QUALIFYING INDIVIDUAL FOR WHOM THE EXPENSES
WERE INCURRED; AND (IV) ANY OTHER INFORMATION AS REQUIRED.
(5) ANY REFERENCES TO THE INTERNAL REVENUE CODE IN THIS SUBSECTION
SHALL BE TO THE INTERNAL REVENUE CODE AS IT EXISTED PRIOR TO JANUARY
FIRST, TWO THOUSAND TWENTY-FIVE.
§ 3. Paragraph 3 of subsection (e) of section 697 of the tax law, as
amended by chapter 284 of the laws of 2016, is amended to read as
follows:
(3) Nothing herein shall be construed to prohibit the department, its
officers or employees from furnishing information to the office of
temporary and disability assistance relating to the payment of the cred-
it for certain household and dependent care services necessary for gain-
ful employment under subsection (c) of section six hundred six of this
article, THE NEW YORK STATE CHILD AND DEPENDENT CARE CREDIT UNDER
SUBSECTION (C-2) OF SECTION SIX HUNDRED SIX OF THIS ARTICLE, and the
earned income credit under subsection (d) of section six hundred six of
this article and the enhanced earned income credit under subsection
(d-1) of section six hundred six of this article, or pursuant to a local
law enacted by a city having a population of one million or more pursu-
ant to subsection (f) of section thirteen hundred ten of this chapter,
only to the extent necessary to calculate qualified state expenditures
under paragraph seven of subdivision (a) of section four hundred nine of
the federal social security act or to document the proper expenditure of
federal temporary assistance for needy families funds under section four
hundred three of such act. The office of temporary and disability
assistance may redisclose such information to the United States depart-
ment of health and human services only to the extent necessary to calcu-
A. 10009--B 7
late such qualified state expenditures or to document the proper expend-
iture of such federal temporary assistance for needy families funds.
Nothing herein shall be construed to prohibit the delivery by the
commissioner to a commissioner of jurors, appointed pursuant to section
five hundred four of the judiciary law, or, in counties within cities
having a population of one million or more, to the county clerk of such
county, or to the clerk of the court or jury administrator of a United
States district court appointed pursuant to title twenty-eight of the
United States Code, section 1836(b)(2), of a mailing list of individuals
to whom income tax forms are mailed by the commissioner for the sole
purpose of compiling a list of prospective jurors as provided in article
sixteen of the judiciary law or title twenty-eight of the United States
Code. Provided, however, such delivery shall only be made pursuant to an
order of the chief administrator of the courts, appointed pursuant to
section two hundred ten of the judiciary law or an order of a chief
judge of any United States district court in New York State. No such
order may be issued unless such chief administrator or chief judge of
such United States district court is satisfied that such mailing list is
needed to compile a proper list of prospective jurors for the county or
such United States district court for which such order is sought and
that, in view of the responsibilities imposed by the various laws of the
state on the department, it is reasonable to require the commissioner to
furnish such list. Such order shall provide that such list shall be used
for the sole purpose of compiling a list of prospective jurors and that
such commissioner of jurors, or such county clerk, or clerk of the court
or jury administrator of such United States district court shall take
all necessary steps to insure that the list is kept confidential and
that there is no unauthorized use or disclosure of such list. Further-
more, nothing herein shall be construed to prohibit the delivery to a
taxpayer or [his or her] THEIR duly authorized representative of a
certified copy of any return or report filed in connection with [his or
her] THEIR tax or to prohibit the publication of statistics so classi-
fied as to prevent the identification of particular reports or returns
and the items thereof, or the inspection by the attorney general or
other legal representatives of the state of the report or return of any
taxpayer or of any employer filed under section one hundred
seventy-one-h of this chapter, where such taxpayer or employer shall
bring action to set aside or review the tax based thereon, or against
whom an action or proceeding under this chapter or under this chapter
and article eighteen of the labor law has been recommended by the
commissioner, the commissioner of labor with respect to unemployment
insurance matters, or the attorney general or has been instituted, or
the inspection of the reports or returns required under this article by
the comptroller or duly designated officer or employee of the state
department of audit and control, for purposes of the audit of a refund
of any tax paid by a taxpayer under this article, or the furnishing to
the state department of labor of unemployment insurance information
obtained or derived from quarterly combined withholding, wage reporting
and unemployment insurance returns required to be filed by employers
pursuant to paragraph four of subsection (a) of section six hundred
seventy-four of this article, for purposes of administration of such
department's unemployment insurance program, employment services
program, federal and state employment and training programs, employment
statistics and labor market information programs, worker protection
programs, federal programs for which the department has administrative
responsibility or for other purposes deemed appropriate by the commis-
A. 10009--B 8
sioner of labor consistent with the provisions of the labor law, and
redisclosure of such information in accordance with the provisions of
sections five hundred thirty-six and five hundred thirty-seven of the
labor law or any other applicable law, or the furnishing to the state
office of temporary and disability assistance of information obtained or
derived from New York state personal income tax returns as described in
paragraph (b) of subdivision two of section one hundred seventy-one-g of
this chapter for the purpose of reviewing support orders enforced pursu-
ant to title six-A of article three of the social services law to aid in
the determination of whether such orders should be adjusted, or the
furnishing of information obtained from the reports required to be
submitted by employers regarding newly hired or re-hired employees
pursuant to section one hundred seventy-one-h of this chapter to the
state office of temporary and disability assistance, the state depart-
ment of health, the state department of labor and the workers' compen-
sation board for purposes of administration of the child support
enforcement program, verification of individuals' eligibility for one or
more of the programs specified in subsection (b) of section eleven
hundred thirty-seven of the federal social security act and for other
public assistance programs authorized by state law, and administration
of the state's employment security and workers' compensation programs,
and to the national directory of new hires established pursuant to
section four hundred fifty-three-A of the federal social security act
for the purposes specified in such section, or the furnishing to the
state office of temporary and disability assistance of the amount of an
overpayment of income tax and interest thereon certified to the comp-
troller to be credited against past-due support pursuant to section one
hundred seventy-one-c of this chapter and of the name and social securi-
ty number of the taxpayer who made such overpayment, or the disclosing
to the commissioner of finance of the city of New York, pursuant to
section one hundred seventy-one-l of this chapter, of the amount of an
overpayment and interest thereon certified to the comptroller to be
credited against a city of New York tax warrant judgment debt and of the
name and social security number of the taxpayer who made such overpay-
ment, or the furnishing to the New York state higher education services
corporation of the amount of an overpayment of income tax and interest
thereon certified to the comptroller to be credited against the amount
of a default in repayment of any education loan debt, including judg-
ments, owed to the federal or New York state government that is being
collected by the New York state higher education services corporation,
and of the name and social security number of the taxpayer who made such
overpayment, or the furnishing to the state department of health of the
information required by paragraph (f) of subdivision two and subdivision
two-a of section two thousand five hundred eleven of the public health
law and by subdivision eight of section three hundred sixty-six-a of the
social services law, or the furnishing to the state university of New
York or the city university of New York respectively or the attorney
general on behalf of such state or city university the amount of an
overpayment of income tax and interest thereon certified to the comp-
troller to be credited against the amount of a default in repayment of a
state university loan pursuant to section one hundred seventy-one-e of
this chapter and of the name and social security number of the taxpayer
who made such overpayment, or the disclosing to a state agency, pursuant
to section one hundred seventy-one-f of this chapter, of the amount of
an overpayment and interest thereon certified to the comptroller to be
credited against a past-due legally enforceable debt owed to such agency
A. 10009--B 9
and of the name and social security number of the taxpayer who made such
overpayment, or the furnishing of employee and employer information
obtained through the wage reporting system, pursuant to section one
hundred seventy-one-a of this chapter, as added by chapter five hundred
forty-five of the laws of nineteen hundred seventy-eight, to the state
office of temporary and disability assistance, the department of health
or to the state office of the medicaid inspector general for the purpose
of verifying eligibility for and entitlement to amounts of benefits
under the social services law or similar law of another jurisdiction,
locating absent parents or other persons legally responsible for the
support of applicants for or recipients of public assistance and care
under the social services law and persons legally responsible for the
support of a recipient of services under section one hundred eleven-g of
the social services law and, in appropriate cases, establishing support
obligations pursuant to the social services law and the family court act
or similar provision of law of another jurisdiction for the purpose of
evaluating the effect on earnings of participation in employment, train-
ing or other programs designed to promote self-sufficiency authorized
pursuant to the social services law by current recipients of public
assistance and care and by former applicants and recipients of public
assistance and care, (except that with regard to former recipients,
information which relates to a particular former recipient shall be
provided with client identifying data deleted), to the state office of
temporary and disability assistance for the purpose of determining the
eligibility of any child in the custody, care and custody or custody and
guardianship of a local social services district or of the office of
children and family services for federal payments for foster care and
adoption assistance pursuant to the provisions of title IV-E of the
federal social security act by providing information with respect to the
parents, the stepparents, the child and the siblings of the child who
were living in the same household as such child during the month that
the court proceedings leading to the child's removal from the household
were initiated, or the written instrument transferring care and custody
of the child pursuant to the provisions of section three hundred fifty-
eight-a or three hundred eighty-four-a of the social services law was
signed, provided however that the office of temporary and disability
assistance shall only use the information obtained pursuant to this
subdivision for the purpose of determining the eligibility of such child
for federal payments for foster care and adoption assistance pursuant to
the provisions of title IV-E of the federal social security act, and to
the state department of labor, or other individuals designated by the
commissioner of labor, for the purpose of the administration of such
department's unemployment insurance program, employment services
program, federal and state employment and training programs, employment
statistics and labor market information programs, worker protection
programs, federal programs for which the department has administrative
responsibility or for other purposes deemed appropriate by the commis-
sioner of labor consistent with the provisions of the labor law, and
redisclosure of such information in accordance with the provisions of
sections five hundred thirty-six and five hundred thirty-seven of the
labor law, or the furnishing of information, which is obtained from the
wage reporting system operated pursuant to section one hundred seventy-
one-a of this chapter, as added by chapter five hundred forty-five of
the laws of nineteen hundred seventy-eight, to the state office of
temporary and disability assistance so that it may furnish such informa-
tion to public agencies of other jurisdictions with which the state
A. 10009--B 10
office of temporary and disability assistance has an agreement pursuant
to paragraph (h) or (i) of subdivision three of section twenty of the
social services law, and to the state office of temporary and disability
assistance for the purpose of fulfilling obligations and responsibil-
ities otherwise incumbent upon the state department of labor, under
section one hundred twenty-four of the federal family support act of
nineteen hundred eighty-eight, by giving the federal parent locator
service, maintained by the federal department of health and human
services, prompt access to such information as required by such act, or
to the state department of health to verify eligibility under the child
health insurance plan pursuant to subdivisions two and two-a of section
two thousand five hundred eleven of the public health law, to verify
eligibility under the medical assistance and family health plus programs
pursuant to subdivision eight of section three hundred sixty-six-a of
the social services law, and to verify eligibility for the program for
elderly pharmaceutical insurance coverage under title three of article
two of the elder law, or to the office of vocational and educational
services for individuals with disabilities of the education department,
the commission for the blind and any other state vocational rehabili-
tation agency, for purposes of obtaining reimbursement from the federal
social security administration for expenditures made by such office,
commission or agency on behalf of disabled individuals who have achieved
economic self-sufficiency or to the higher education services corpo-
ration for the purpose of assisting the corporation in default
prevention and default collection of education loan debt, including
judgments, owed to the federal or New York state government; provided,
however, that such information shall be limited to the names, social
security numbers, home and/or business addresses, and employer names of
defaulted or delinquent student loan borrowers, or to the office of the
state comptroller for purposes of verifying the income of a retired
member of a retirement system or pension plan administered by the state
or any of its political subdivisions who returns to public employment.
Provided, however, that with respect to employee information the
office of temporary and disability assistance shall only be furnished
with the names, social security account numbers and gross wages of those
employees who are (A) applicants for or recipients of benefits under the
social services law, or similar provision of law of another jurisdiction
(pursuant to an agreement under subdivision three of section twenty of
the social services law) or, (B) absent parents or other persons legally
responsible for the support of applicants for or recipients of public
assistance and care under the social services law or similar provision
of law of another jurisdiction (pursuant to an agreement under subdivi-
sion three of section twenty of the social services law), or (C) persons
legally responsible for the support of a recipient of services under
section one hundred eleven-g of the social services law or similar
provision of law of another jurisdiction (pursuant to an agreement under
subdivision three of section twenty of the social services law), or (D)
employees about whom wage reporting system information is being
furnished to public agencies of other jurisdictions, with which the
state office of temporary and disability assistance has an agreement
pursuant to paragraph (h) or (i) of subdivision three of section twenty
of the social services law, or (E) employees about whom wage reporting
system information is being furnished to the federal parent locator
service, maintained by the federal department of health and human
services, for the purpose of enabling the state office of temporary and
disability assistance to fulfill obligations and responsibilities other-
A. 10009--B 11
wise incumbent upon the state department of labor, under section one
hundred twenty-four of the federal family support act of nineteen
hundred eighty-eight, and, only if, the office of temporary and disabil-
ity assistance certifies to the commissioner that such persons are such
applicants, recipients, absent parents or persons legally responsible
for support or persons about whom information has been requested by a
public agency of another jurisdiction or by the federal parent locator
service and further certifies that in the case of information requested
under agreements with other jurisdictions entered into pursuant to
subdivision three of section twenty of the social services law, that
such request is in compliance with any applicable federal law. Provided,
further, that where the office of temporary and disability assistance
requests employee information for the purpose of evaluating the effects
on earnings of participation in employment, training or other programs
designed to promote self-sufficiency authorized pursuant to the social
services law, the office of temporary and disability assistance shall
only be furnished with the quarterly gross wages (excluding any refer-
ence to the name, social security number or any other information which
could be used to identify any employee or the name or identification
number of any employer) paid to employees who are former applicants for
or recipients of public assistance and care and who are so certified to
the commissioner by the commissioner of the office of temporary and
disability assistance. Provided, further, that with respect to employee
information, the department of health shall only be furnished with the
information required pursuant to the provisions of paragraph (f) of
subdivision two and subdivision two-a of section two thousand five
hundred eleven of the public health law and subdivision eight of section
three hundred sixty-six-a of the social services law, with respect to
those individuals whose eligibility under the child health insurance
plan, medical assistance program, and family health plus program is to
be determined pursuant to such provisions and with respect to those
members of any such individual's household whose income affects such
individual's eligibility and who are so certified to the commissioner or
by the department of health. Provided, further, that wage reporting
information shall be furnished to the office of vocational and educa-
tional services for individuals with disabilities of the education
department, the commission for the blind and any other state vocational
rehabilitation agency only if such office, commission or agency, as
applicable, certifies to the commissioner that such information is
necessary to obtain reimbursement from the federal social security
administration for expenditures made on behalf of disabled individuals
who have achieved self-sufficiency. Reports and returns shall be
preserved for three years and thereafter until the commissioner orders
them to be destroyed.
§ 4. This act shall take effect immediately.
PART B
Section 1. Subsection (c) of section 612 of the tax law is amended by
adding a new paragraph 48 to read as follows:
(48) FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOU-
SAND TWENTY-SIX, AN AMOUNT OF UP TO TWENTY-FIVE THOUSAND DOLLARS TO THE
EXTENT ALLOWED AS A FEDERAL DEDUCTION PURSUANT TO SECTION TWO HUNDRED
TWENTY-FOUR OF THE INTERNAL REVENUE CODE.
§ 2. This act shall take effect immediately.
A. 10009--B 12
PART C
Section 1. Subsection (g) of section 615 of the tax law, as amended by
section 1 of part Q of chapter 59 of the laws of 2019, paragraph 2 as
amended by section 1 of part A of chapter 59 of the laws of 2024, is
amended to read as follows:
(g) Notwithstanding subsection (a) of this section, the New York item-
ized deduction for charitable contributions shall be the amount allowed
under section one hundred seventy of the internal revenue code OR THE
AMOUNT ALLOWABLE PURSUANT TO PARAGRAPH THREE OF THIS SUBSECTION, as
modified by paragraph nine of subsection (c) of this section and as
limited by this subsection. (1) With respect to an individual whose New
York adjusted gross income is over one million dollars and no more than
ten million dollars, the New York itemized deduction shall be an amount
equal to fifty percent of any charitable contribution deduction allowed
under section one hundred seventy of the internal revenue code OR ALLOW-
ABLE PURSUANT TO PARAGRAPH THREE OF THIS SUBSECTION for taxable years
beginning after two thousand nine and before two thousand twenty-five.
With respect to an individual whose New York adjusted gross income is
over one million dollars, the New York itemized deduction shall be an
amount equal to fifty percent of any charitable contribution deduction
allowed under section one hundred seventy of the internal revenue code
OR ALLOWABLE PURSUANT TO PARAGRAPH THREE OF THIS SUBSECTION for taxable
years beginning in two thousand nine or after two thousand twenty-four.
(2) With respect to an individual whose New York adjusted gross income
is over ten million dollars, the New York itemized deduction shall be an
amount equal to twenty-five percent of any charitable contribution
deduction allowed under section one hundred seventy of the internal
revenue code OR ALLOWABLE PURSUANT TO PARAGRAPH THREE OF THIS SUBSECTION
for taxable years beginning after two thousand nine and ending before
two thousand thirty.
(3) CONTRIBUTIONS TO AN ORGANIZATION THAT MEETS THE DEFINITION OF AN
EXEMPT ORGANIZATION UNDER PARAGRAPH FOUR OF SUBDIVISION (A) OF SECTION
ELEVEN HUNDRED SIXTEEN OF THIS CHAPTER OR TO ORGANIZATIONS THAT HAVE
APPLIED FOR, AND WERE APPROVED FOR TAX-EXEMPT STATUS UNDER SUBSECTION
(C) OF SECTION FIVE HUNDRED ONE OF THE INTERNAL REVENUE CODE BY THE
INTERNAL REVENUE SERVICE BEFORE JANUARY FIRST, TWO THOUSAND TWENTY-FIVE,
WILL CONTINUE TO QUALIFY AS CHARITABLE CONTRIBUTIONS ALLOWABLE AS A NEW
YORK ITEMIZED DEDUCTION UNDER THIS SUBSECTION, TO THE EXTENT OTHERWISE
ALLOWABLE UNDER SECTION ONE HUNDRED SEVENTY OF THE INTERNAL REVENUE
CODE, EVEN IF THE INTERNAL REVENUE SERVICE REVOKES SUCH ORGANIZATION'S
TAX-EXEMPT STATUS, SO LONG AS THE ORGANIZATION ESTABLISHES THAT THE
REVOCATION WAS UNRELATED TO THE ORGANIZATION'S CHARITABLE MISSION AND
THAT IT CONTINUES TO MEET THE STATUTORY REQUIREMENTS OF PARAGRAPH THREE
OF SUBSECTION (C) OF SECTION FIVE HUNDRED ONE OF THE INTERNAL REVENUE
CODE AND THE REGULATIONS AND AUTHORITIES PROMULGATED THEREUNDER.
§ 2. This act shall take effect immediately and shall apply to taxable
years beginning on or after January 1, 2026.
PART D
Section 1. Paragraph (c) of section 42 of the tax law, as amended by
section 1 of part N of chapter 59 of the laws of 2019, is amended to
read as follows:
(c) For purposes of this section, the term "eligible farmer" [means a
taxpayer whose federal gross income from farming as defined] SHALL HAVE
A. 10009--B 13
THE SAME MEANING AS SET FORTH in subsection (n) of section six hundred
six of this chapter [for the taxable year is at least two-thirds of
excess federal gross income. Excess federal gross income means the
amount of federal gross income from all sources for the taxable year in
excess of thirty thousand dollars. For purposes of this section,
payments from the state's farmland protection program, administered by
the department of agriculture and markets, shall be included as federal
gross income from farming for otherwise eligible farmers].
§ 2. Paragraph (b) of section 42-a of the tax law, as amended by
section 2 of part KK of chapter 59 of the laws of 2025, is amended to
read as follows:
(b) For purposes of this section, the term "eligible farm employer"
means a taxpayer who received an overtime expense certificate pursuant
to section three hundred thirty-five of the agriculture and markets law
and [whose federal gross income from farming] WHO IS AN ELIGIBLE FARMER,
as defined in subsection (n) of section six hundred six of this chapter
for the taxable year [is at least two-thirds of excess federal gross
income. Excess federal gross income means the amount of federal gross
income from all sources for the taxable year in excess of thirty thou-
sand dollars. For purposes of this section, payments from the state's
farmland protection program, administered by the department of agricul-
ture and markets, shall be included as federal gross income from farming
for otherwise eligible farmers].
§ 3. Subdivision 11 of section 210-B of the tax law is amended by
adding a new paragraph (a-1) to read as follows:
(A-1) NEW YORK GROSS INCOME FROM FARMING. FOR PURPOSES OF THIS SUBDI-
VISION, THE TERM "NEW YORK GROSS INCOME FROM FARMING" MEANS A TAXPAYER'S
FEDERAL GROSS INCOME FROM FARMING, PLUS PAYMENTS FROM THE STATE'S FARM-
LAND PROTECTION PROGRAM, ADMINISTERED BY THE DEPARTMENT OF AGRICULTURE
AND MARKETS, INCOME FROM A COMMERCIAL HORSE BOARDING OPERATION AS
DEFINED BY SUBDIVISION THIRTEEN OF SECTION THREE HUNDRED ONE OF THE
AGRICULTURE AND MARKETS LAW, AND INCOME FROM THE PRODUCTION OR SALE OF
MAPLE SYRUP, CHRISTMAS TREES, AND CIDER OR WINE FROM A LICENSED NEW YORK
STATE FARM CIDERY OR WINERY, AS PROVIDED FOR IN SECTION FIFTY-EIGHT-C
AND ARTICLE SIX OF THE ALCOHOLIC BEVERAGE CONTROL LAW.
§ 4. Paragraph (b) of subdivision 11 of section 210-B of the tax law,
as added by section 17 of part A of chapter 59 of the laws of 2014, is
amended to read as follows:
(b) Eligible farmer. For purposes of this subdivision, the term
"eligible farmer" means a taxpayer whose [federal] NEW YORK gross income
from farming for the taxable year, OR WHOSE AVERAGE NEW YORK GROSS
INCOME FROM FARMING FOR THE CURRENT YEAR AND TWO PRIOR TAXABLE YEARS, is
at least two-thirds of [excess] SUCH TAXPAYER'S federal gross income
FROM ALL SOURCES LESS THIRTY THOUSAND DOLLARS. The term "eligible farm-
er" also includes a corporation other than the taxpayer of record for
qualified agricultural land which has paid the school district property
taxes on such land pursuant to a contract for the future purchase of
such land; provided that such corporation [has a federal gross income
from farming for the taxable year which is at least two-thirds of excess
federal gross income; and provided further that, in determining such
income eligibility, a taxpayer may, for any taxable year, use the aver-
age of such federal gross income from farming for that taxable year and
such income for the two consecutive taxable years immediately preceding
such taxable year. Excess federal gross income means the amount of
federal gross income from all sources for the taxable year in excess of
thirty thousand dollars. For the purposes of this paragraph, payments
A. 10009--B 14
from the state's farmland protection program, administered by the
department of agriculture and markets, shall be included as federal
gross income from farming for otherwise eligible farmers] MEETS THE
DEFINITION OF ELIGIBLE FARMER PURSUANT TO THIS PARAGRAPH.
§ 5. Paragraph (i) of subdivision 11 of section 210-B of the tax law
is REPEALED.
§ 6. Paragraph (b) of subdivision 52 of section 210-B of the tax law,
as added by section 4 of part DDD of chapter 59 of the laws of 2017, is
amended to read as follows:
(b) Eligible farmer. For purposes of this subdivision, the term
"eligible farmer" [means a taxpayer whose federal gross income from
farming for the taxable year is at least two-thirds of excess federal
gross income. Excess federal gross income means the amount of federal
gross income from all sources for the taxable year in excess of thirty
thousand dollars. For purposes of this paragraph, payments from the
state's farmland protection program, administered by the department of
agriculture and markets, shall be included as federal gross income from
farming for otherwise eligible farmers] SHALL HAVE THE SAME MEANING AS
SET FORTH SUBDIVISION ELEVEN OF THIS SECTION.
§ 7. Subsection (n) of section 606 of the tax law is amended by adding
a new paragraph 1-a to read as follows:
(1-A) NEW YORK GROSS INCOME FROM FARMING. FOR PURPOSES OF THIS
SUBSECTION, THE TERM "NEW YORK GROSS INCOME FROM FARMING" MEANS A
TAXPAYER'S FEDERAL GROSS INCOME FROM FARMING, PLUS PAYMENTS FROM THE
STATE'S FARMLAND PROTECTION PROGRAM, ADMINISTERED BY THE DEPARTMENT OF
AGRICULTURE AND MARKETS, INCOME FROM A COMMERCIAL HORSE BOARDING OPERA-
TION AS DEFINED BY SUBDIVISION THIRTEEN OF SECTION THREE HUNDRED ONE OF
THE AGRICULTURE AND MARKETS LAW, AND INCOME FROM THE PRODUCTION OR SALE
OF MAPLE SYRUP, CHRISTMAS TREES, AND CIDER OR WINE FROM A LICENSED NEW
YORK STATE FARM CIDERY OR WINERY, AS PROVIDED FOR IN SECTION FIFTY-
EIGHT-C AND ARTICLE SIX OF THE ALCOHOLIC BEVERAGE CONTROL LAW.
§ 8. Paragraph 2 of subsection (n) of section 606 of the tax law, as
amended by chapter 297 of the laws of 2010, is amended to read as
follows:
(2) Eligible farmer. For purposes of this subsection, the term "eligi-
ble farmer" means a taxpayer whose [federal] NEW YORK gross income from
farming for the taxable year, OR WHOSE AVERAGE NEW YORK GROSS INCOME
FROM FARMING FOR THE CURRENT YEAR AND TWO PRIOR TAXABLE YEARS, is at
least two-thirds of [excess] SUCH TAXPAYER'S federal gross income FROM
ALL SOURCES LESS THIRTY THOUSAND DOLLARS. The term "eligible farmer"
also includes an individual other than the taxpayer of record for quali-
fied agricultural land who has paid the school district property taxes
on such land pursuant to a contract for the future purchase of such
land; provided that such individual [has a federal gross income from
farming for the taxable year which is at least two-thirds of excess
federal gross income; and provided further that, in determining such
income eligibility, a taxpayer may, for any taxable year, use the aver-
age of such federal gross income from farming for that taxable year and
such income for the two consecutive taxable years immediately preceding
such taxable year. Excess federal gross income means the amount of
federal gross income from all sources for the taxable year reduced by
the sum (not to exceed thirty thousand dollars) of those items included
in federal gross income which consist of (i) earned income, (ii) pension
payments, including social security payments, (iii) interest, and (iv)
dividends. For purposes of this paragraph, the term "earned income"
shall mean wages, salaries, tips and other employee compensation, and
A. 10009--B 15
those items of gross income which are includible in the computation of
net earnings from self-employment. For the purposes of this paragraph,
payments from the state's farmland protection program, administered by
the department of agriculture and markets, shall be included as federal
gross income from farming for otherwise eligible farmers] MEETS THE
DEFINITION OF "ELIGIBLE FARMER" PURSUANT TO THIS PARAGRAPH.
§ 9. Paragraph 8 of subsection (n) of section 606 of the tax law is
REPEALED.
§ 10. Paragraph 2 of subsection (n-2) of section 606 of the tax law,
as added by section 1 of part DDD of chapter 59 of the laws of 2017, is
amended to read as follows:
(2) Eligible farmer. For purposes of this subsection, the term "eligi-
ble farmer" [means a taxpayer whose federal gross income from farming
for the taxable year is at least two-thirds of excess federal gross
income. Excess federal gross income means the amount of federal gross
income from all sources for the taxable year reduced by the sum (not to
exceed thirty thousand dollars) of those items included in federal gross
income that consist of: (i) earned income, (ii) pension payments,
including social security payments, (iii) interest, and (iv) dividends.
For purposes of this paragraph, the term "earned income" shall mean
wages, salaries, tips and other employee compensation, and those items
of gross income that are includible in the computation of net earnings
from self-employment. For the purposes of this paragraph, payments from
the state's farmland protection program, administered by the department
of agriculture and markets, shall be included as federal gross income
from farming for otherwise eligible farmers] SHALL HAVE THE SAME MEANING
AS SET FORTH IN SUBSECTION (N) OF THIS SECTION.
§ 11. This act shall take effect immediately and shall apply to taxa-
ble years beginning on or after January 1, 2026.
PART E
Section 1. The opening paragraph of paragraph (a) of subdivision 1 of
section 210 of the tax law, as amended by section 1 of subpart A of part
I of chapter 59 of the laws of 2023, is amended to read as follows:
For taxable years beginning before January first, two thousand
sixteen, the amount prescribed by this paragraph shall be computed at
the rate of seven and one-tenth percent of the taxpayer's business
income base. For taxable years beginning on or after January first, two
thousand sixteen, the amount prescribed by this paragraph shall be six
and one-half percent of the taxpayer's business income base. For taxable
years beginning on or after January first, two thousand twenty-one and
before January first, two thousand [twenty-seven] TWENTY-SIX for any
taxpayer with a business income base for the taxable year of more than
five million dollars, the amount prescribed by this paragraph shall be
seven and one-quarter percent of the taxpayer's business income base.
FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND
TWENTY-SIX AND BEFORE JANUARY FIRST, TWO THOUSAND THIRTY FOR ANY TAXPAY-
ER WITH A BUSINESS INCOME BASE FOR THE TAXABLE YEAR OF MORE THAN FIVE
MILLION DOLLARS BUT NOT OVER TEN MILLION DOLLARS, THE AMOUNT PRESCRIBED
BY THIS PARAGRAPH SHALL BE SEVEN AND ONE-QUARTER PERCENT OF THE TAXPAY-
ER'S INCOME BASE. PROVIDED, FURTHER, FOR TAXABLE YEARS BEGINNING ON OR
AFTER JANUARY FIRST, TWO THOUSAND TWENTY-SIX AND BEFORE JANUARY FIRST,
TWO THOUSAND THIRTY FOR ANY TAXPAYER WITH A BUSINESS INCOME BASE FOR THE
TAXABLE YEAR OF MORE THAN TEN MILLION DOLLARS, THE AMOUNT PRESCRIBED BY
THIS PARAGRAPH SHALL BE NINE AND ONE-QUARTER PERCENT OF THE TAXPAYER'S
A. 10009--B 16
BUSINESS INCOME BASE. The taxpayer's business income base shall mean the
portion of the taxpayer's business income apportioned within the state
as hereinafter provided. However, in the case of a small business
taxpayer, as defined in paragraph (f) of this subdivision, the amount
prescribed by this paragraph shall be computed pursuant to subparagraph
(iv) of this paragraph and in the case of a manufacturer, as defined in
subparagraph (vi) of this paragraph, the amount prescribed by this para-
graph shall be computed pursuant to subparagraph (vi) of this paragraph,
and, in the case of a qualified emerging technology company, as defined
in subparagraph (vii) of this paragraph, the amount prescribed by this
paragraph shall be computed pursuant to subparagraph (vii) of this para-
graph.
§ 2. Subparagraph 1 of paragraph (b) of subdivision 1 of section 210
of the tax law, as amended by section 2 of subpart A of part I of chap-
ter 59 of the laws of 2023, is amended to read as follows:
(1) (i) The amount prescribed by this paragraph shall be computed
at .15 percent for each dollar of the taxpayer's total business capital,
or the portion thereof apportioned within the state as hereinafter
provided for taxable years beginning before January first, two thousand
sixteen. However, in the case of a cooperative housing corporation as
defined in the internal revenue code, the applicable rate shall be .04
percent until taxable years beginning on or after January first, two
thousand twenty and zero percent for taxable years beginning on or after
January first, two thousand twenty-one. The rate of tax for subsequent
tax years shall be as follows: .125 percent for taxable years beginning
on or after January first, two thousand sixteen and before January
first, two thousand seventeen; .100 percent for taxable years beginning
on or after January first, two thousand seventeen and before January
first, two thousand eighteen; .075 percent for taxable years beginning
on or after January first, two thousand eighteen and before January
first, two thousand nineteen; .050 percent for taxable years beginning
on or after January first, two thousand nineteen and before January
first, two thousand twenty; .025 percent for taxable years beginning on
or after January first, two thousand twenty and before January first,
two thousand twenty-one; and .1875 percent for years beginning on or
after January first, two thousand twenty-one and before January first,
two thousand [twenty-seven] THIRTY, and zero percent for taxable years
beginning on or after January first, two thousand [twenty-seven] THIRTY.
Provided however, for taxable years beginning on or after January first,
two thousand twenty-one, the rate of tax for a small business as defined
in paragraph (f) of this subdivision shall be zero percent. The rate of
tax for a qualified New York manufacturer shall be .132 percent for
taxable years beginning on or after January first, two thousand fifteen
and before January first, two thousand sixteen, .106 percent for taxable
years beginning on or after January first, two thousand sixteen and
before January first, two thousand seventeen, .085 percent for taxable
years beginning on or after January first, two thousand seventeen and
before January first, two thousand eighteen; .056 percent for taxable
years beginning on or after January first, two thousand eighteen and
before January first, two thousand nineteen; .038 percent for taxable
years beginning on or after January first, two thousand nineteen and
before January first, two thousand twenty; .019 percent for taxable
years beginning on or after January first, two thousand twenty and
before January first, two thousand twenty-one; and zero percent for
years beginning on or after January first, two thousand twenty-one. (ii)
In no event shall the amount prescribed by this paragraph exceed three
A. 10009--B 17
hundred fifty thousand dollars for qualified New York manufacturers and
for all other taxpayers five million dollars.
§ 3. This act shall take effect immediately.
PART F
Section 1. Paragraph (a) of subdivision 9 of section 208 of the tax
law is amended by adding three new subparagraphs 24, 25 and 26 to read
as follows:
(24) FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOU-
SAND TWENTY-FIVE, IN THE CASE OF QUALIFIED PRODUCTION PROPERTY DESCRIBED
IN PARAGRAPH TWO OF SUBSECTION (N) OF SECTION ONE HUNDRED SIXTY-EIGHT OF
THE INTERNAL REVENUE CODE, THE AMOUNT OF ANY DEDUCTION ALLOWED PURSUANT
TO SUBSECTION (A) OF SECTION ONE HUNDRED SIXTY-SEVEN OF THE INTERNAL
REVENUE CODE AS IF THE TAXPAYER HAS NOT MADE AN ELECTION PURSUANT TO
SUBSECTION (N) OF SECTION ONE HUNDRED SIXTY-EIGHT OF THE INTERNAL REVEN-
UE CODE.
(25) FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOU-
SAND TWENTY-FIVE, THE AMOUNT OF ANY FOREIGN AND DOMESTIC RESEARCH OR
EXPERIMENTAL EXPENDITURES, AS DEFINED IN SECTIONS ONE HUNDRED SEVENTY-
FOUR AND 174A OF THE INTERNAL REVENUE CODE, PAID OR INCURRED IN EACH
TAXABLE YEAR ON AND AFTER JANUARY FIRST, TWO THOUSAND TWENTY-FIVE, AMOR-
TIZED OVER A SIXTY-MONTH PERIOD AS IF THE ELECTION IN SUBSECTION (C) OF
SECTION 174A OF THE INTERNAL REVENUE CODE APPLIED TO SUCH FOREIGN AND
DOMESTIC RESEARCH OR EXPERIMENTAL EXPENDITURES.
(26) FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOU-
SAND TWENTY-FIVE, THE REMAINING AMOUNT OF ANY FOREIGN AND DOMESTIC
RESEARCH OR EXPERIMENTAL EXPENDITURES, AS DEFINED IN SECTIONS ONE
HUNDRED SEVENTY-FOUR AND 174A OF THE INTERNAL REVENUE CODE, PAID OR
INCURRED PRIOR TO JANUARY FIRST, TWO THOUSAND TWENTY-FIVE, DETERMINED AS
IF SECTION ONE HUNDRED SEVENTY-FOUR OF THE INTERNAL REVENUE CODE IN
EFFECT AS OF JANUARY FIRST, TWO THOUSAND TWENTY-TWO, APPLIED TO SUCH
EXPENDITURES.
§ 2. Paragraph (b) of subdivision 9 of section 208 of the tax law is
amended by adding two new subparagraphs 28 and 29 to read as follows:
(28) FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOU-
SAND TWENTY-FIVE, IN THE CASE OF QUALIFIED PRODUCTION PROPERTY DESCRIBED
IN PARAGRAPH TWO OF SUBSECTION (N) OF SECTION ONE HUNDRED SIXTY-EIGHT OF
THE INTERNAL REVENUE CODE, ANY AMOUNT WHICH THE TAXPAYER CLAIMED AS A
DEDUCTION UNDER SUBSECTION (A) OF SECTION ONE HUNDRED SIXTY-SEVEN OF THE
INTERNAL REVENUE CODE THAT INCLUDED AN ALLOWANCE SOLELY AS A RESULT OF
AN ELECTION MADE PURSUANT TO SUBSECTION (N) OF SECTION ONE HUNDRED
SIXTY-EIGHT OF THE INTERNAL REVENUE CODE.
(29) FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOU-
SAND TWENTY-FIVE, ANY AMOUNT CLAIMED AS A DEDUCTION UNDER SECTIONS ONE
HUNDRED SEVENTY-FOUR AND 174A OF THE INTERNAL REVENUE CODE IN EFFECT AS
OF JANUARY FIRST, TWO THOUSAND TWENTY-FIVE, AND ANY AMOUNT CLAIMED AS A
DEDUCTION PURSUANT TO FEDERAL PUBLIC LAW 119-21, TITLE VII, SECTION
70302(F)(2)(A), FOR FOREIGN AND DOMESTIC RESEARCH OR EXPERIMENTAL
EXPENDITURES, AS DEFINED IN SECTIONS ONE HUNDRED SEVENTY-FOUR AND 174A
OF THE INTERNAL REVENUE CODE.
§ 3. Subsection (b) of section 612 of the tax law is amended by adding
two new paragraphs 44 and 45 to read as follows:
(44) FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOU-
SAND TWENTY-FIVE, IN THE CASE OF QUALIFIED PRODUCTION PROPERTY DESCRIBED
IN PARAGRAPH TWO OF SUBSECTION (N) OF SECTION ONE HUNDRED SIXTY-EIGHT OF
A. 10009--B 18
THE INTERNAL REVENUE CODE, ANY AMOUNT WHICH THE TAXPAYER CLAIMED AS A
DEDUCTION UNDER SUBSECTION (A) OF SECTION ONE HUNDRED SIXTY-SEVEN OF THE
INTERNAL REVENUE CODE THAT INCLUDED AN ALLOWANCE SOLELY AS A RESULT OF
AN ELECTION MADE PURSUANT TO SUBSECTION (N) OF SECTION ONE HUNDRED
SIXTY-EIGHT OF THE INTERNAL REVENUE CODE.
(45) FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOU-
SAND TWENTY-FIVE, ANY AMOUNT CLAIMED AS A DEDUCTION UNDER SECTIONS ONE
HUNDRED SEVENTY-FOUR AND 174A OF THE INTERNAL REVENUE CODE IN EFFECT AS
OF JANUARY FIRST, TWO THOUSAND TWENTY-FIVE, AND ANY AMOUNT CLAIMED AS A
DEDUCTION PURSUANT TO FEDERAL PUBLIC LAW 119-21, TITLE VII, SECTION
70302(F)(2)(A), FOR FOREIGN AND DOMESTIC RESEARCH OR EXPERIMENTAL
EXPENDITURES, AS DEFINED IN SECTIONS ONE HUNDRED SEVENTY-FOUR AND 174A
OF THE INTERNAL REVENUE CODE.
§ 4. Subsection (c) of section 612 of the tax law is amended by adding
three new paragraphs 48, 49 and 50 to read as follows:
(48) FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOU-
SAND TWENTY-FIVE, IN THE CASE OF QUALIFIED PRODUCTION PROPERTY DESCRIBED
IN PARAGRAPH TWO OF SUBSECTION (N) OF SECTION ONE HUNDRED SIXTY-EIGHT OF
THE INTERNAL REVENUE CODE, THE AMOUNT OF ANY DEDUCTION ALLOWED PURSUANT
TO SUBSECTION (A) OF SECTION ONE HUNDRED SIXTY-SEVEN OF THE INTERNAL
REVENUE CODE AS IF THE TAXPAYER HAS NOT MADE AN ELECTION PURSUANT TO
SUBSECTION (N) OF SECTION ONE HUNDRED SIXTY-EIGHT OF THE INTERNAL REVEN-
UE CODE.
(49) FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOU-
SAND TWENTY-FIVE, THE AMOUNT OF ANY FOREIGN AND DOMESTIC RESEARCH OR
EXPERIMENTAL EXPENDITURES, AS DEFINED IN SECTIONS ONE HUNDRED SEVENTY-
FOUR AND 174A OF THE INTERNAL REVENUE CODE, PAID OR INCURRED IN EACH
TAXABLE YEAR ON AND AFTER JANUARY FIRST, TWO THOUSAND TWENTY-FIVE, AMOR-
TIZED OVER A SIXTY-MONTH PERIOD AS IF THE ELECTION IN SUBSECTION (C) OF
SECTION 174A OF THE INTERNAL REVENUE CODE APPLIED TO SUCH FOREIGN AND
DOMESTIC RESEARCH OR EXPERIMENTAL EXPENDITURES.
(50) FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOU-
SAND TWENTY-FIVE, THE REMAINING AMOUNT OF ANY FOREIGN AND DOMESTIC
RESEARCH OR EXPERIMENTAL EXPENDITURES, AS DEFINED IN SECTIONS ONE
HUNDRED SEVENTY-FOUR AND 174A OF THE INTERNAL REVENUE CODE, PAID OR
INCURRED PRIOR TO JANUARY FIRST, TWO THOUSAND TWENTY-FIVE, DETERMINED AS
IF SECTION ONE HUNDRED SEVENTY-FOUR OF THE INTERNAL REVENUE CODE IN
EFFECT AS OF JANUARY FIRST, TWO THOUSAND TWENTY-TWO, APPLIED TO SUCH
EXPENDITURES.
§ 5. Paragraph 1 of subdivision (b) of section 1503 of the tax law is
amended by adding three new subparagraphs (X), (Y) and (Z) to read as
follows:
(X) FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOU-
SAND TWENTY-FIVE, IN THE CASE OF QUALIFIED PRODUCTION PROPERTY DESCRIBED
IN PARAGRAPH TWO OF SUBSECTION (N) OF SECTION ONE HUNDRED SIXTY-EIGHT OF
THE INTERNAL REVENUE CODE, THE AMOUNT OF ANY DEDUCTION ALLOWED PURSUANT
TO SUBSECTION (A) OF SECTION ONE HUNDRED SIXTY-SEVEN OF THE INTERNAL
REVENUE CODE AS IF THE TAXPAYER HAS NOT MADE AN ELECTION PURSUANT TO
SUBSECTION (N) OF SECTION ONE HUNDRED SIXTY-EIGHT OF THE INTERNAL REVEN-
UE CODE.
(Y) FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOU-
SAND TWENTY-FIVE, THE AMOUNT OF ANY FOREIGN AND DOMESTIC RESEARCH OR
EXPERIMENTAL EXPENDITURES, AS DEFINED IN SECTIONS ONE HUNDRED SEVENTY-
FOUR AND 174A OF THE INTERNAL REVENUE CODE, PAID OR INCURRED IN EACH
TAXABLE YEAR ON AND AFTER JANUARY FIRST, TWO THOUSAND TWENTY-FIVE, AMOR-
TIZED OVER A SIXTY-MONTH PERIOD AS IF THE ELECTION IN SUBSECTION (C) OF
A. 10009--B 19
SECTION 174A OF THE INTERNAL REVENUE CODE APPLIED TO SUCH FOREIGN AND
DOMESTIC RESEARCH OR EXPERIMENTAL EXPENDITURES.
(Z) FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOU-
SAND TWENTY-FIVE, THE REMAINING AMOUNT OF ANY FOREIGN AND DOMESTIC
RESEARCH OR EXPERIMENTAL EXPENDITURES, AS DEFINED IN SECTIONS ONE
HUNDRED SEVENTY-FOUR AND 174A OF THE INTERNAL REVENUE CODE, PAID OR
INCURRED PRIOR TO JANUARY FIRST, TWO THOUSAND TWENTY-FIVE, DETERMINED AS
IF SECTION ONE HUNDRED SEVENTY-FOUR OF THE INTERNAL REVENUE CODE IN
EFFECT AS OF JANUARY FIRST, TWO THOUSAND TWENTY-TWO, APPLIED TO SUCH
EXPENDITURES.
§ 6. Paragraph 2 of subdivision (b) of section 1503 of the tax law is
amended by adding two new subparagraphs (AA) and (BB) to read as
follows:
(AA) FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOU-
SAND TWENTY-FIVE, IN THE CASE OF QUALIFIED PRODUCTION PROPERTY DESCRIBED
IN PARAGRAPH TWO OF SUBSECTION (N) OF SECTION ONE HUNDRED SIXTY-EIGHT OF
THE INTERNAL REVENUE CODE, ANY AMOUNT WHICH THE TAXPAYER CLAIMED AS A
DEDUCTION UNDER SUBSECTION (A) OF SECTION ONE HUNDRED SIXTY-SEVEN OF THE
INTERNAL REVENUE CODE THAT INCLUDED AN ALLOWANCE SOLELY AS A RESULT OF
AN ELECTION MADE PURSUANT TO SUBSECTION (N) OF SECTION ONE HUNDRED
SIXTY-EIGHT OF THE INTERNAL REVENUE CODE.
(BB) FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOU-
SAND TWENTY-FIVE, ANY AMOUNT CLAIMED AS A DEDUCTION UNDER SECTIONS ONE
HUNDRED SEVENTY-FOUR AND 174A OF THE INTERNAL REVENUE CODE IN EFFECT AS
OF JANUARY FIRST, TWO THOUSAND TWENTY-FIVE, AND ANY AMOUNT CLAIMED AS A
DEDUCTION PURSUANT TO FEDERAL PUBLIC LAW 119-21, TITLE VII, SECTION
70302(F)(2)(A), FOR FOREIGN AND DOMESTIC RESEARCH OR EXPERIMENTAL
EXPENDITURES, AS DEFINED IN SECTIONS ONE HUNDRED SEVENTY-FOUR AND 174A
OF THE INTERNAL REVENUE CODE.
§ 7. This act shall take effect immediately, and shall apply to tax
years beginning on or after January 1, 2025.
PART G
Section 1. Subdivision (b) of section 11-506 of the administrative
code of the city of New York is amended by adding four new paragraphs
19, 20, 21 and 22 to read as follows:
(19) FOR TAXABLE YEARS BEGINNING AFTER DECEMBER THIRTY-FIRST, TWO
THOUSAND TWENTY-FOUR, THE AMOUNT ALLOWED AS AN EXCLUSION OR DEDUCTION IN
DETERMINING FEDERAL GROSS INCOME OF ANY DEPRECIATION OF QUALIFIED
PRODUCTION PROPERTY DESCRIBED IN SUBSECTION (N) OF SECTION ONE HUNDRED
SIXTY-EIGHT OF THE INTERNAL REVENUE CODE. FOR THE PURPOSES OF THIS CHAP-
TER, SUCH PROPERTY SHALL NOT BE TREATED AS SECTION 1245 PROPERTY AS
DESCRIBED IN SECTION TWELVE HUNDRED FORTY-FIVE OF THE INTERNAL REVENUE
CODE.
(20) FOR TAXABLE YEARS BEGINNING AFTER DECEMBER THIRTY-FIRST, TWO
THOUSAND TWENTY-FOUR, THE AMOUNT ALLOWED AS AN EXCLUSION OR DEDUCTION IN
DETERMINING FEDERAL GROSS INCOME PURSUANT TO SUBSECTION (A) OF SECTION
ONE HUNDRED SEVENTY-NINE OF THE INTERNAL REVENUE CODE.
(21) FOR TAXABLE YEARS BEGINNING AFTER DECEMBER THIRTY-FIRST, TWO
THOUSAND TWENTY-FOUR, THE AMOUNT ALLOWED AS AN EXCLUSION OR DEDUCTION IN
DETERMINING FEDERAL GROSS INCOME FOR DOMESTIC RESEARCH OR EXPERIMENTAL
EXPENDITURES PURSUANT TO SECTION ONE HUNDRED SEVENTY-FOUR-A OF THE
INTERNAL REVENUE CODE.
(22) FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOU-
SAND TWENTY-FIVE, THE INCREASE IN THE AMOUNT ALLOWED AS A FEDERAL INTER-
A. 10009--B 20
EST DEDUCTION PURSUANT TO SECTION ONE HUNDRED SIXTY-THREE OF THE INTER-
NAL REVENUE CODE ATTRIBUTABLE TO ADDITIONAL ADJUSTED TAXABLE INCOME THAT
IS ATTRIBUTABLE TO DEPRECIATION, AMORTIZATION, OR DEPLETION. FOR THE
PURPOSES OF THIS SUBDIVISION, "ADDITIONAL ADJUSTED TAXABLE INCOME THAT
IS ATTRIBUTABLE TO DEPRECIATION, AMORTIZATION, OR DEPLETION" MEANS THE
DIFFERENCE BETWEEN THE AMOUNT OF ADJUSTED TAXABLE INCOME COMPUTED PURSU-
ANT TO PARAGRAPH EIGHT OF SUBSECTION (J) OF SECTION ONE HUNDRED SIXTY-
THREE OF THE INTERNAL REVENUE CODE AND SUCH AMOUNT CALCULATED WITHOUT
REGARD TO CLAUSE (V) OF SUBPARAGRAPH (A) OF SUCH PARAGRAPH.
§ 2. Paragraph (c) of section 11-506 of the administrative code of the
city of New York is amended by adding three new paragraphs 14, 15 and 16
to read as follows:
(14) FOR TAXABLE YEARS BEGINNING AFTER DECEMBER THIRTY-FIRST, TWO
THOUSAND TWENTY-FOUR, FOR TAXPAYERS THAT HAVE MADE AN ELECTION PURSUANT
TO PARAGRAPH SIX OF SUBSECTION (N) OF SECTION ONE HUNDRED SIXTY-EIGHT OF
THE INTERNAL REVENUE CODE WITH RESPECT TO ANY QUALIFIED PRODUCTION PROP-
ERTY AS DEFINED IN SUCH SUBSECTION, THE AMOUNT ALLOWED AS AN EXCLUSION
OR DEDUCTION IN DETERMINING FEDERAL GROSS INCOME OF ANY DEPRECIATION OF
SUCH QUALIFIED PRODUCTION PROPERTY, PURSUANT TO SUBSECTION (A) OF
SECTION ONE HUNDRED SIXTY-SEVEN OF SUCH CODE SO THAT THE DEPRECIATION
DEDUCTION AND ADJUSTED BASIS REDUCTION OR ANY OTHER DEDUCTION OR EXCLU-
SION ALLOWED BY SUBSECTION (N) OF SECTION ONE HUNDRED SIXTY-EIGHT OF
SUCH CODE SHALL NOT APPLY.
(15) FOR TAXABLE YEARS BEGINNING AFTER DECEMBER THIRTY-FIRST, TWO
THOUSAND TWENTY-FOUR, THE AMOUNT ALLOWED AS AN EXCLUSION OR DEDUCTION IN
DETERMINING FEDERAL GROSS INCOME PURSUANT TO SUBSECTION (A) OF SECTION
ONE HUNDRED SEVENTY-NINE OF THE INTERNAL REVENUE CODE SUBJECT TO THE
DOLLAR LIMITATIONS IN PARAGRAPHS ONE AND TWO OF SUBSECTION (B) OF SUCH
SECTION THAT WERE IN EFFECT FOR THE LAST TAX YEAR BEGINNING BEFORE JANU-
ARY FIRST, TWO THOUSAND TWENTY-FIVE, ADJUSTED IN ACCORDANCE WITH PARA-
GRAPH SIX OF SUCH SUBSECTION USING THE AMOUNTS IN PARAGRAPHS ONE AND TWO
THAT WERE IN EFFECT FOR SUCH TAX YEAR AND, FOR THE PURPOSES OF APPLYING
CLAUSE (II) OF SUBPARAGRAH (A) OF PARAGRAPH THREE OF SUBSECTION (F) OF
SECTION ONE OF THE INTERNAL REVENUE CODE, SUBSTITUTING "CALENDAR YEAR
2017" FOR "CALENDAR YEAR 2016".
(16) FOR TAXABLE YEARS BEGINNING AFTER DECEMBER THIRTY-FIRST, TWO
THOUSAND TWENTY-FOUR, THE AMOUNT ALLOWED AS AN EXCLUSION OR DEDUCTION IN
DETERMINING FEDERAL GROSS INCOME FOR DOMESTIC RESEARCH OR EXPERIMENTAL
EXPENDITURES PURSUANT TO SECTION ONE HUNDRED SEVENTY-FOUR-A OF THE
INTERNAL REVENUE CODE, PROVIDED THAT SUCH EXCLUSION OR DEDUCTION IS
CALCULATED IN THE SAME MANNER AS AN EXCLUSION OR DEDUCTION FOR A FOREIGN
RESEARCH OR EXPERIMENTAL EXPENDITURE DESCRIBED IN SECTION ONE HUNDRED
SEVENTY-FOUR OF SUCH CODE, EXCEPT THAT THE AMORTIZATION DEDUCTION OF
SUCH EXPENDITURES SHALL BE RATED OVER THE FIVE-YEAR PERIOD BEGINNING
WITH THE MIDPOINT OF THE TAXABLE YEAR IN WHICH SUCH EXPENDITURES ARE
PAID OR INCURRED.
§ 3. Paragraph (a) of subdivision 8 of section 11-602 of the adminis-
trative code of the city of New York is amended by adding three new
subparagraphs 18, 19 and 20 to read as follows:
(18) FOR TAXABLE YEARS BEGINNING AFTER DECEMBER THIRTY-FIRST, TWO
THOUSAND TWENTY-FOUR, FOR TAXPAYERS THAT HAVE MADE AN ELECTION PURSUANT
TO PARAGRAPH SIX OF SUBSECTION (N) OF SECTION ONE HUNDRED SIXTY-EIGHT OF
THE INTERNAL REVENUE CODE WITH RESPECT TO ANY QUALIFIED PRODUCTION PROP-
ERTY DEFINED IN SUCH SUBSECTION, THE AMOUNT ALLOWED AS AN EXCLUSION OR
DEDUCTION IN DETERMINING FEDERAL TAXABLE INCOME OF ANY DEPRECIATION OF
SUCH QUALIFIED PRODUCTION PROPERTY, PURSUANT TO SUBSECTION (A) OF
A. 10009--B 21
SECTION ONE HUNDRED SIXTY-SEVEN OF SUCH CODE SO THAT THE DEPRECIATION
DEDUCTION AND ADJUSTED BASIS REDUCTION OR ANY OTHER DEDUCTION OR EXCLU-
SION ALLOWED BY SUBSECTION (N) OF SECTION ONE HUNDRED SIXTY-EIGHT OF
SUCH CODE SHALL NOT APPLY.
(19) FOR TAXABLE YEARS BEGINNING AFTER DECEMBER THIRTY-FIRST, TWO
THOUSAND TWENTY-FOUR, THE AMOUNT ALLOWED AS AN EXCLUSION OR DEDUCTION IN
DETERMINING FEDERAL TAXABLE INCOME PURSUANT TO SUBSECTION (A) OF SECTION
ONE HUNDRED SEVENTY-NINE OF THE INTERNAL REVENUE CODE SUBJECT TO THE
DOLLAR LIMITATIONS IN PARAGRAPHS ONE AND TWO OF SUBSECTION (B) OF SUCH
SECTION THAT WERE IN EFFECT FOR THE LAST TAX YEAR BEGINNING BEFORE JANU-
ARY FIRST, TWO THOUSAND TWENTY-FIVE, ADJUSTED IN ACCORDANCE WITH PARA-
GRAPH SIX OF SUCH SUBSECTION USING THE AMOUNTS IN PARAGRAPHS ONE AND TWO
THAT WERE IN EFFECT FOR SUCH TAX YEAR AND, FOR THE PURPOSES OF APPLYING
CLAUSE (II) OF SUBPARAGRAPH (A) OF PARAGRAPH THREE OF SUBSECTION (F) OF
SECTION ONE OF THE INTERNAL REVENUE CODE, SUBSTITUTING "CALENDAR YEAR
2017" FOR "CALENDAR YEAR 2016".
(20) FOR TAXABLE YEARS BEGINNING AFTER DECEMBER THIRTY-FIRST, TWO
THOUSAND TWENTY-FOUR, THE AMOUNT ALLOWED AS AN EXCLUSION OR DEDUCTION IN
DETERMINING FEDERAL TAXABLE INCOME FOR DOMESTIC RESEARCH OR EXPERIMENTAL
EXPENDITURES PURSUANT TO SECTION ONE HUNDRED SEVENTY-FOUR-A OF THE
INTERNAL REVENUE CODE, PROVIDED THAT SUCH EXCLUSION OR DEDUCTION IS
CALCULATED IN THE SAME MANNER AS AN EXCLUSION OR DEDUCTION FOR A FOREIGN
RESEARCH OR EXPERIMENTAL EXPENDITURE DESCRIBED IN SECTION ONE HUNDRED
SEVENTY-FOUR OF SUCH CODE, EXCEPT THAT THE AMORTIZATION DEDUCTION OF
SUCH EXPENDITURES SHALL BE RATED OVER THE FIVE-YEAR PERIOD BEGINNING
WITH THE MIDPOINT OF THE TAXABLE YEAR IN WHICH SUCH EXPENDITURES ARE
PAID OR INCURRED.
§ 4. Paragraph (b) of subdivision 8 of section 11-602 of the adminis-
trative code of the city of New York is amended by adding four new
subparagraphs 23, 24, 25 and 26 to read as follows:
(23) FOR TAXABLE YEARS BEGINNING AFTER DECEMBER THIRTY-FIRST, TWO
THOUSAND TWENTY-FOUR, THE AMOUNT ALLOWED AS AN EXCLUSION OR DEDUCTION IN
DETERMINING FEDERAL TAXABLE INCOME OF ANY DEPRECIATION OF QUALIFIED
PRODUCTION PROPERTY DESCRIBED IN SUBSECTION (N) OF SECTION ONE HUNDRED
SIXTY-EIGHT OF THE INTERNAL REVENUE CODE. FOR THE PURPOSES OF THIS
SUBCHAPTER, SUCH PROPERTY SHALL NOT BE TREATED AS SECTION 1245 PROPERTY
AS DESCRIBED IN SECTION ONE THOUSAND TWO HUNDRED FORTY-FIVE OF THE
INTERNAL REVENUE CODE.
(24) FOR TAXABLE YEARS BEGINNING AFTER DECEMBER THIRTY-FIRST, TWO
THOUSAND TWENTY-FOUR, THE AMOUNT ALLOWED AS AN EXCLUSION OR DEDUCTION IN
DETERMINING FEDERAL TAXABLE INCOME PURSUANT TO SUBSECTION (A) OF SECTION
ONE HUNDRED SEVENTY-NINE OF THE INTERNAL REVENUE CODE.
(25) FOR TAXABLE YEARS BEGINNING AFTER DECEMBER THIRTY-FIRST, TWO
THOUSAND TWENTY-FOUR, THE AMOUNT ALLOWED AS AN EXCLUSION OR DEDUCTION IN
DETERMINING FEDERAL TAXABLE INCOME FOR DOMESTIC RESEARCH OR EXPERIMENTAL
EXPENDITURES PURSUANT TO SECTION ONE HUNDRED SEVENTY-FOUR-A OF THE
INTERNAL REVENUE CODE.
(26) FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOU-
SAND TWENTY-FIVE, THE INCREASE IN THE AMOUNT ALLOWED AS A FEDERAL INTER-
EST DEDUCTION PURSUANT TO SECTION ONE HUNDRED SIXTY-THREE OF THE INTER-
NAL REVENUE CODE ATTRIBUTABLE TO ADDITIONAL ADJUSTED TAXABLE INCOME THAT
IS ATTRIBUTABLE TO DEPRECIATION, AMORTIZATION, OR DEPLETION. FOR THE
PURPOSES OF THIS SUBDIVISION, "ADDITIONAL ADJUSTED TAXABLE INCOME THAT
IS ATTRIBUTABLE TO DEPRECIATION, AMORTIZATION, OR DEPLETION" MEANS THE
DIFFERENCE BETWEEN THE AMOUNT OF ADJUSTED TAXABLE INCOME COMPUTED PURSU-
ANT TO PARAGRAPH EIGHT OF SUBSECTION (J) OF SECTION ONE HUNDRED SIXTY-
A. 10009--B 22
THREE OF THE INTERNAL REVENUE CODE AND SUCH AMOUNT CALCULATED WITHOUT
REGARD TO CLAUSE (V) OF SUBPARAGRAPH (A) OF SUCH PARAGRAPH.
§ 5. Clause (E) of subparagraph (2) of paragraph (a) of subdivision 3
of section 11-604 of the administrative code of the city of New York, as
added by chapter 59 of the laws of 2019, is amended to read as follows:
(E) notwithstanding any other provision of this paragraph, [net global
intangible low-taxed income shall be included in the receipts fraction
as provided in this clause. Receipts constituting net global intangible
low-taxed income] THE AMOUNT REQUIRED TO BE INCLUDED IN THE TAXPAYER'S
FEDERAL GROSS INCOME PURSUANT TO SUBSECTION (A) OF SECTION 951A OF THE
INTERNAL REVENUE CODE LESS THE AMOUNT OF THE DEDUCTION ALLOWED UNDER
CLAUSE (I) OF SECTION 250(A)(1) (B) OF SUCH CODE shall not be included
in the numerator of the receipts fraction. [Receipts constituting net
global intangible low-taxed income] THE AMOUNT REQUIRED TO BE INCLUDED
IN THE TAXPAYER'S FEDERAL GROSS INCOME PURSUANT TO SUBSECTION (A) OF
SECTION 951A OF THE INTERNAL REVENUE CODE LESS THE AMOUNT OF THE
DEDUCTION ALLOWED UNDER CLAUSE (I) OF SECTION 250(A)(1)(B) OF SUCH CODE
shall be included in the denominator of the receipts fraction. [For
purposes of this clause, the term "net global intangible low-taxed
income" means the amount that would have been required to be included in
the taxpayer's federal gross income pursuant to subsection (a) of
section 951A of the internal revenue code less the amount of the
deduction that would have been allowed under clause (i) of section
250(a)(1)(B) of such code if the taxpayer had not made an election under
subchapter s of chapter one of the internal revenue code] FOR ANY TAXA-
BLE YEAR, SUCH AMOUNT SHALL BE CALCULATED PURSUANT TO SUCH PROVISIONS OF
THE INTERNAL REVENUE CODE PROVISIONS AS IN EFFECT IN SUCH TAXABLE YEAR.
§ 6. Subdivision (b) of section 11-641 of the administrative code of
the city of New York is amended by adding four new paragraphs 18, 19, 20
and 21 to read as follows:
(18) FOR TAXABLE YEARS BEGINNING AFTER DECEMBER THIRTY-FIRST, TWO
THOUSAND TWENTY-FOUR, THE AMOUNT ALLOWED AS AN EXCLUSION OR DEDUCTION IN
DETERMINING FEDERAL TAXABLE INCOME OF ANY DEPRECIATION OF QUALIFIED
PRODUCTION PROPERTY DESCRIBED IN SUBSECTION (N) OF SECTION ONE HUNDRED
SIXTY-EIGHT OF THE INTERNAL REVENUE CODE. FOR THE PURPOSES OF THIS
SUBCHAPTER, SUCH PROPERTY SHALL NOT BE TREATED AS SECTION 1245 PROPERTY
AS DESCRIBED IN SECTION ONE THOUSAND TWO HUNDRED FORTY-FIVE OF THE
INTERNAL REVENUE CODE.
(19) FOR TAXABLE YEARS BEGINNING AFTER DECEMBER THIRTY-FIRST, TWO
THOUSAND TWENTY-FOUR, THE AMOUNT ALLOWED AS AN EXCLUSION OR DEDUCTION IN
DETERMINING FEDERAL TAXABLE INCOME PURSUANT TO SUBSECTION (A) OF SECTION
ONE HUNDRED SEVENTY-NINE OF THE INTERNAL REVENUE CODE.
(20) FOR TAXABLE YEARS BEGINNING AFTER DECEMBER THIRTY-FIRST, TWO
THOUSAND TWENTY-FOUR, THE AMOUNT ALLOWED AS AN EXCLUSION OR DEDUCTION IN
DETERMINING FEDERAL TAXABLE INCOME FOR DOMESTIC RESEARCH OR EXPERIMENTAL
EXPENDITURES PURSUANT TO SECTION ONE HUNDRED SEVENTY-FOUR-A OF THE
INTERNAL REVENUE CODE.
(21) FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOU-
SAND TWENTY-FIVE, THE INCREASE IN THE AMOUNT ALLOWED AS A FEDERAL INTER-
EST DEDUCTION PURSUANT TO SECTION ONE HUNDRED SIXTY-THREE OF THE INTER-
NAL REVENUE CODE ATTRIBUTABLE TO ADDITIONAL ADJUSTED TAXABLE INCOME THAT
IS ATTRIBUTABLE TO DEPRECIATION, AMORTIZATION, OR DEPLETION. FOR THE
PURPOSES OF THIS SUBDIVISION, "ADDITIONAL ADJUSTED TAXABLE INCOME THAT
IS ATTRIBUTABLE TO DEPRECIATION, AMORTIZATION, OR DEPLETION" MEANS THE
DIFFERENCE BETWEEN THE AMOUNT OF ADJUSTED TAXABLE INCOME COMPUTED PURSU-
ANT TO PARAGRAPH EIGHT OF SUBSECTION (J) OF SECTION ONE HUNDRED SIXTY-
A. 10009--B 23
THREE OF THE INTERNAL REVENUE CODE AND SUCH AMOUNT CALCULATED WITHOUT
REGARD TO CLAUSE (V) OF SUBPARAGRAPH (A) OF SUCH PARAGRAPH.
§ 7. Subdivision (e) of section 11-641 of the administrative code of
the city of New York is amended by adding three new paragraphs 17, 18
and 19 to read as follows:
(17) FOR TAXABLE YEARS BEGINNING AFTER DECEMBER THIRTY-FIRST, TWO
THOUSAND TWENTY-FOUR, FOR TAXPAYERS THAT HAVE MADE AN ELECTION PURSUANT
TO PARAGRAPH SIX OF SUBSECTION (N) OF SECTION ONE HUNDRED SIXTY-EIGHT OF
THE INTERNAL REVENUE CODE WITH RESPECT TO ANY QUALIFIED PRODUCTION PROP-
ERTY DEFINED IN SUCH SUBSECTION, THE AMOUNT ALLOWED AS AN EXCLUSION OR
DEDUCTION IN DETERMINING FEDERAL TAXABLE INCOME OF ANY DEPRECIATION OF
SUCH QUALIFIED PRODUCTION PROPERTY, PURSUANT TO SUBSECTION (A) OF
SECTION ONE HUNDRED SIXTY-SEVEN OF SUCH CODE SO THAT THE DEPRECIATION
DEDUCTION AND ADJUSTED BASIS REDUCTION OR ANY OTHER DEDUCTION OR EXCLU-
SION ALLOWED BY SUBSECTION (N) OF SECTION ONE HUNDRED SIXTY-EIGHT OF
SUCH CODE SHALL NOT APPLY.
(18) FOR TAXABLE YEARS BEGINNING AFTER DECEMBER THIRTY-FIRST, TWO
THOUSAND TWENTY-FOUR, THE AMOUNT ALLOWED AS AN EXCLUSION OR DEDUCTION IN
DETERMINING FEDERAL TAXABLE INCOME PURSUANT TO SUBSECTION (A) OF SECTION
ONE HUNDRED SEVENTY-NINE OF THE INTERNAL REVENUE CODE SUBJECT TO THE
DOLLAR LIMITATIONS IN PARAGRAPHS ONE AND TWO OF SUBSECTION (B) OF SUCH
SECTION THAT WERE IN EFFECT FOR THE LAST TAX YEAR BEGINNING BEFORE JANU-
ARY FIRST, TWO THOUSAND TWENTY-FIVE, ADJUSTED IN ACCORDANCE WITH PARA-
GRAPH SIX OF SUCH SUBSECTION USING THE AMOUNTS IN PARAGRAPHS ONE AND TWO
THAT WERE IN EFFECT FOR SUCH TAX YEAR AND, FOR THE PURPOSES OF APPLYING
CLAUSE (II) OF SUBPARAGRAPH (A) OF PARAGRAPH THREE OF SUBSECTION (F) OF
SECTION ONE OF THE INTERNAL REVENUE CODE, SUBSTITUTING "CALENDAR YEAR
2017" FOR "CALENDAR YEAR 2016".
(19) FOR TAXABLE YEARS BEGINNING AFTER DECEMBER THIRTY-FIRST, TWO
THOUSAND TWENTY-FOUR, THE AMOUNT ALLOWED AS AN EXCLUSION OR DEDUCTION IN
DETERMINING FEDERAL TAXABLE INCOME FOR DOMESTIC RESEARCH OR EXPERIMENTAL
EXPENDITURES PURSUANT TO SECTION ONE HUNDRED SEVENTY-FOUR-A OF THE
INTERNAL REVENUE CODE, PROVIDED THAT SUCH EXCLUSION OR DEDUCTION IS
CALCULATED IN THE SAME MANNER AS AN EXCLUSION OR DEDUCTION FOR A FOREIGN
RESEARCH OR EXPERIMENTAL EXPENDITURE DESCRIBED IN SECTION ONE HUNDRED
SEVENTY-FOUR OF SUCH CODE, EXCEPT THAT THE AMORTIZATION DEDUCTION OF
SUCH EXPENDITURES SHALL BE RATED OVER THE FIVE-YEAR PERIOD BEGINNING
WITH THE MIDPOINT OF THE TAXABLE YEAR IN WHICH SUCH EXPENDITURES ARE
PAID OR INCURRED.
§ 8. Paragraph (a) of subdivision 8 of section 11-652 of the adminis-
trative code of the city of New York is amended by adding three new
subparagraphs 19, 20 and 21 to read as follows:
(19) FOR TAXABLE YEARS BEGINNING AFTER DECEMBER THIRTY-FIRST, TWO
THOUSAND TWENTY-FOUR, FOR TAXPAYERS THAT HAVE MADE AN ELECTION PURSUANT
TO PARAGRAPH SIX OF SUBSECTION (N) OF SECTION ONE HUNDRED SIXTY-EIGHT OF
THE INTERNAL REVENUE CODE WITH RESPECT TO ANY QUALIFIED PRODUCTION PROP-
ERTY DEFINED IN SUCH SUBSECTION, THE AMOUNT ALLOWED AS AN EXCLUSION OR
DEDUCTION IN DETERMINING FEDERAL TAXABLE INCOME OF ANY DEPRECIATION OF
SUCH QUALIFIED PRODUCTION PROPERTY, PURSUANT TO SUBSECTION (A) OF
SECTION ONE HUNDRED SIXTY-SEVEN OF SUCH CODE SO THAT THE DEPRECIATION
DEDUCTION AND ADJUSTED BASIS REDUCTION OR ANY OTHER DEDUCTION OR EXCLU-
SION ALLOWED BY SUBSECTION (N) OF SECTION ONE HUNDRED SIXTY-EIGHT OF
SUCH CODE SHALL NOT APPLY.
(20) FOR TAXABLE YEARS BEGINNING AFTER DECEMBER THIRTY-FIRST, TWO
THOUSAND TWENTY-FOUR, THE AMOUNT ALLOWED AS AN EXCLUSION OR DEDUCTION IN
DETERMINING FEDERAL TAXABLE INCOME PURSUANT TO SUBSECTION (A) OF SECTION
A. 10009--B 24
ONE HUNDRED SEVENTY-NINE OF THE INTERNAL REVENUE CODE SUBJECT TO THE
DOLLAR LIMITATIONS IN PARAGRAPHS ONE AND TWO OF SUBSECTION (B) OF SUCH
SECTION THAT WERE IN EFFECT FOR THE LAST TAX YEAR BEGINNING BEFORE JANU-
ARY FIRST, TWO THOUSAND TWENTY-FIVE, ADJUSTED IN ACCORDANCE WITH PARA-
GRAPH SIX OF SUCH SUBSECTION USING THE AMOUNTS IN PARAGRAPHS ONE AND TWO
THAT WERE IN EFFECT FOR SUCH TAX YEAR AND, FOR THE PURPOSES OF APPLYING
CLAUSE (II) OF SUBPARAGRAPH (A) OF PARAGRAPH THREE OF SUBSECTION (F) OF
SECTION ONE OF THE INTERNAL REVENUE CODE, SUBSTITUTING "CALENDAR YEAR
2017" FOR "CALENDAR YEAR 2016".
(21) FOR TAXABLE YEARS BEGINNING AFTER DECEMBER THIRTY-FIRST, TWO
THOUSAND TWENTY-FOUR, THE AMOUNT ALLOWED AS AN EXCLUSION OR DEDUCTION IN
DETERMINING FEDERAL TAXABLE INCOME FOR DOMESTIC RESEARCH OR EXPERIMENTAL
EXPENDITURES PURSUANT TO SECTION ONE HUNDRED SEVENTY-FOUR-A OF THE
INTERNAL REVENUE CODE, PROVIDED THAT SUCH EXCLUSION OR DEDUCTION IS
CALCULATED IN THE SAME MANNER AS AN EXCLUSION OR DEDUCTION FOR A FOREIGN
RESEARCH OR EXPERIMENTAL EXPENDITURE DESCRIBED IN SECTION ONE HUNDRED
SEVENTY-FOUR OF SUCH CODE, EXCEPT THAT THE AMORTIZATION DEDUCTION OF
SUCH EXPENDITURES SHALL BE RATED OVER THE FIVE-YEAR PERIOD BEGINNING
WITH THE MIDPOINT OF THE TAXABLE YEAR IN WHICH SUCH EXPENDITURES ARE
PAID OR INCURRED.
§ 9. Paragraph (b) of subdivision 8 of section 11-652 of the adminis-
trative code of the city of New York is amended by adding four new
subparagraphs 24, 25, 26 and 27 to read as follows:
(24) FOR TAXABLE YEARS BEGINNING AFTER DECEMBER THIRTY-FIRST, TWO
THOUSAND TWENTY-FOUR, THE AMOUNT ALLOWED AS AN EXCLUSION OR DEDUCTION IN
DETERMINING FEDERAL TAXABLE INCOME OF ANY DEPRECIATION OF QUALIFIED
PRODUCTION PROPERTY DESCRIBED IN SUBSECTION (N) OF SECTION ONE HUNDRED
SIXTY-EIGHT OF THE INTERNAL REVENUE CODE. FOR THE PURPOSES OF THIS
SUBCHAPTER, SUCH PROPERTY SHALL NOT BE TREATED AS SECTION 1245 PROPERTY
AS DESCRIBED IN SECTION ONE THOUSAND TWO HUNDRED FORTY-FIVE OF THE
INTERNAL REVENUE CODE.
(25) FOR TAXABLE YEARS BEGINNING AFTER DECEMBER THIRTY-FIRST, TWO
THOUSAND TWENTY-FOUR, THE AMOUNT ALLOWED AS AN EXCLUSION OR DEDUCTION IN
DETERMINING FEDERAL TAXABLE INCOME PURSUANT TO SUBSECTION (A) OF SECTION
ONE HUNDRED SEVENTY-NINE OF THE INTERNAL REVENUE CODE.
(26) FOR TAXABLE YEARS BEGINNING AFTER DECEMBER THIRTY-FIRST, TWO
THOUSAND TWENTY-FOUR, THE AMOUNT ALLOWED AS AN EXCLUSION OR DEDUCTION IN
DETERMINING FEDERAL TAXABLE INCOME FOR DOMESTIC RESEARCH OR EXPERIMENTAL
EXPENDITURES PURSUANT TO SECTION ONE HUNDRED SEVENTY-FOUR-A OF THE
INTERNAL REVENUE CODE.
(27) FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOU-
SAND TWENTY-FIVE, THE INCREASE IN THE AMOUNT ALLOWED AS A FEDERAL INTER-
EST DEDUCTION PURSUANT TO SECTION ONE HUNDRED SIXTY-THREE OF THE INTER-
NAL REVENUE CODE ATTRIBUTABLE TO ADDITIONAL ADJUSTED TAXABLE INCOME THAT
IS ATTRIBUTABLE TO DEPRECIATION, AMORTIZATION, OR DEPLETION. FOR THE
PURPOSES OF THIS SUBDIVISION, "ADDITIONAL ADJUSTED TAXABLE INCOME THAT
IS ATTRIBUTABLE TO DEPRECIATION, AMORTIZATION, OR DEPLETION" MEANS THE
DIFFERENCE BETWEEN THE AMOUNT OF ADJUSTED TAXABLE INCOME COMPUTED PURSU-
ANT TO PARAGRAPH EIGHT OF SUBSECTION (J) OF SECTION ONE HUNDRED SIXTY-
THREE OF THE INTERNAL REVENUE CODE AND SUCH AMOUNT CALCULATED WITHOUT
REGARD TO CLAUSE (V) OF SUBPARAGRAPH (A) OF SUCH PARAGRAPH.
§ 10. Subdivision 5-a of section 11-654.2 of the administrative code
of the city of New York, as added by chapter 59 of the laws of 2019, is
amended to read as follows:
5-a. Notwithstanding any other provision of this section, [net global
intangible low-taxed income shall be included in the receipts fraction
A. 10009--B 25
as provided in this subdivision. Receipts constituting net global intan-
gible low-taxed income] THE AMOUNT REQUIRED TO BE INCLUDED IN THE
TAXPAYER'S FEDERAL GROSS INCOME PURSUANT TO SUBSECTION (A) OF SECTION
951A OF THE INTERNAL REVENUE CODE LESS THE AMOUNT OF THE DEDUCTION
ALLOWED UNDER CLAUSE (I) OF SECTION 250(A)(1)(B) OF SUCH CODE shall not
be included in the numerator of the receipts fraction. [Receipts consti-
tuting net global intangible low-taxed income] THE AMOUNT REQUIRED TO BE
INCLUDED IN THE TAXPAYER'S FEDERAL GROSS INCOME PURSUANT TO SUBSECTION
(A) OF SECTION 951A OF THE INTERNAL REVENUE CODE LESS THE AMOUNT OF THE
DEDUCTION ALLOWED UNDER CLAUSE (I) OF SECTION 250(A)(1)(B) OF SUCH CODE
shall be included in the denominator of the receipts fraction. [For
purposes of this subdivision, the term "net global intangible low-taxed
income" means the amount required to be included in the taxpayer's
federal gross income pursuant to subsection (a) of section 951A of the
internal revenue code less the amount of the deduction allowed under
clause (i) of section 250(a)(1)(B) of such code] FOR ANY TAXABLE YEAR,
SUCH AMOUNT SHALL BE CALCULATED PURSUANT TO SUCH PROVISIONS OF THE
INTERNAL REVENUE CODE PROVISIONS AS IN EFFECT IN SUCH TAXABLE YEAR.
§ 11. This act shall take effect immediately and shall be deemed to
have been in full force and effect on and after December 31, 2024, and
shall apply to taxable years beginning after December 31, 2024.
PART H
Intentionally Omitted
PART I
Section 1. Paragraph (a) of subdivision 5 of section 845-e of the
executive law, as added by section 1 of part E of chapter 59 of the laws
of 2024, is amended to read as follows:
(a) For taxable years beginning on or after January first, two thou-
sand twenty-four and before January first, two thousand [twenty-six]
TWENTY-NINE, a business entity in the commercial security tax credit
program that meets the eligibility requirements of subdivision two of
this section may be eligible to claim a credit equal to three thousand
dollars for each retail location of the business entity located in New
York state.
§ 2. Subdivision (a) of section 49 of the tax law, as added by section
2 of part E of chapter 59 of the laws of 2024, is amended to read as
follows:
(a) Allowance of credit. For taxable years beginning on or after Janu-
ary first, two thousand twenty-four and before January first, two thou-
sand [twenty-six] TWENTY-NINE, a taxpayer required to file a return
pursuant to articles nine, nine-A or twenty-two of this chapter shall be
allowed a credit against such tax, pursuant to the provisions referenced
in subdivision (f) of this section. The amount of the credit is equal to
the amount determined pursuant to section eight hundred forty-five-e of
the executive law. No cost or expense paid or incurred by the taxpayer
that is included as part of the calculation of this credit shall be the
basis of any other tax credit allowed under this chapter.
§ 3. This act shall take effect immediately.
PART J
A. 10009--B 26
Section 1. Paragraph 1 of subdivision (f) of section 24-c of the tax
law, as amended by section 4 of part L of chapter 59 of the laws of
2025, is amended to read as follows:
(1) The aggregate amount of tax credits allowed under this section,
subdivision fifty-seven of section two hundred ten-B and subsection
(mmm) of section six hundred six of this chapter shall be [four] FIVE
hundred FIFTY million dollars. Such aggregate amount of credits shall be
allocated by the department of economic development among taxpayers
based on the date of first performance of the qualified musical and
theatrical production.
§ 2. This act shall take effect immediately and apply to qualified New
York city musical and theatrical production companies whose first
performance was on or after December 1, 2025; provided, however, that
the amendments to section 24-c of the tax law made by section one of
this act shall not affect the repeal of such section and shall be deemed
repealed therewith.
PART K
Section 1. Subdivisions 2 and 12 of section 470 of the tax law, subdi-
vision 2 as amended by chapter 728 of the laws of 2019 and subdivision
12 as added by chapter 61 of the laws of 1989, are amended and a new
subdivision 22 is added to read as follows:
2. "Tobacco products." Any cigar, including a little cigar, [or]
tobacco, OR ALTERNATIVE NICOTINE PRODUCT, other than cigarettes,
intended for consumption by smoking, chewing, or as snuff. "Tobacco
products" shall not include research tobacco products.
12. "Distributor." Any person who imports or causes to be imported
into this state any tobacco product (in excess of fifty cigars [or], one
pound of tobacco, OR FIFTEEN UNITS OF ALTERNATIVE NICOTINE PRODUCTS) for
sale, or who manufactures any tobacco product in this state, and any
person within or without the state who is authorized by the commissioner
of taxation and finance to make returns and pay the tax on tobacco
products sold, shipped or delivered by [him] THEM to any person in the
state.
22. "ALTERNATIVE NICOTINE PRODUCT." ANY NONCOMBUSTIBLE PRODUCT, OTHER
THAN VAPOR PRODUCTS, WHICH CONTAINS NICOTINE BUT NOT TOBACCO AND IS
INTENDED FOR HUMAN CONSUMPTION, WHETHER CHEWED, ABSORBED, DISSOLVED, OR
INGESTED BY ANY OTHER MEANS. "ALTERNATIVE NICOTINE PRODUCT" DOES NOT
INCLUDE ANY PRODUCT REGULATED AS A DRUG OR DEVICE BY THE U.S. FOOD AND
DRUG ADMINISTRATION (FDA) UNDER CHAPTER V (21 U.S.C. § 351 ET SEQ.) OF
THE FEDERAL FOOD, DRUG, AND COSMETIC ACT. THE TERM "UNIT" AS IT RELATES
TO ALTERNATIVE NICOTINE PRODUCTS MEANS ANY CANNISTER, PACK, BOX, CARTON,
OR CONTAINER OF ANY KIND OR, IF NO OTHER CONTAINER, ANY WRAPPING, IN
WHICH AN ALTERNATIVE NICOTINE PRODUCT IS OFFERED FOR SALE, SOLD, OR
OTHERWISE DISTRIBUTED TO CONSUMERS.
§ 2. The opening paragraph of subdivision (a) of section 471-c of the
tax law, as amended by section 2 of part I1 of chapter 57 of the laws of
2009, is amended to read as follows:
There is hereby imposed and shall be paid a tax on all tobacco
products used in the state by any person, except that no such tax shall
be imposed (1) if the tax provided in section four hundred seventy-one-b
of this article is paid, or (2) on the use of tobacco products which are
exempt from the tax imposed by said section, or (3) on the use of two
hundred fifty cigars or less, or five pounds or less of tobacco other
than roll-your-own tobacco, or thirty-six ounces or less of roll-your-
A. 10009--B 27
own tobacco, OR SEVENTY-FIVE UNITS OR LESS OF ALTERNATIVE NICOTINE
PRODUCTS, brought into the state on, or in the possession of, any
person.
§ 3. Subdivisions 2 and 3 of section 474 of the tax law, subdivision 2
as amended by chapter 552 of the laws of 2008 and subdivision 3 as added
by chapter 61 of the laws of 1989, are amended to read as follows:
2. Every person who shall possess or transport more than two hundred
fifty cigars, or more than five pounds of tobacco other than roll-your-
own tobacco, or more than thirty-six ounces of roll-your-own tobacco, OR
MORE THAN SEVENTY-FIVE UNITS OF ALTERNATIVE NICOTINE PRODUCTS, upon the
public highways, roads or streets of the state, shall be required to
have in [his] THEIR actual possession invoices or delivery tickets for
such tobacco products. Such invoices or delivery tickets shall show the
name and address of the consignor or seller, the name and address of the
consignee or purchaser, the quantity and brands of the tobacco products
transported, and the name and address of the person who has or shall
assume the payment of the tax and the wholesale price or the tax paid or
payable. The absence of such invoices or delivery tickets shall be prima
facie evidence that such person is a dealer in tobacco products in this
state and subject to the requirements of this article.
3. Every dealer or distributor or employee thereof, or other person
acting on behalf of a dealer or distributor, who shall possess or trans-
port more than fifty cigars [or], more than one pound of tobacco, OR
MORE THAN FIFTEEN UNITS OF ALTERNATIVE NICOTINE PRODUCTS, upon the
public highways, roads or streets of the state, shall be required to
have in [his] THEIR actual possession invoices or delivery tickets for
such tobacco products. Such invoices or delivery tickets shall show the
name and address of the consignor or seller, the name and address of the
consignee or purchaser, the quantity and brands of the tobacco products
transported, and the name and address of the person who has or shall
assume the payment of the tax and the wholesale price or the tax paid or
payable. The absence of such invoices or delivery tickets shall be prima
facie evidence that the tax imposed by this article on tobacco products
has not been paid and is due and owing.
§ 4. Subparagraph (i) of paragraph (b) of subdivision 1 of section 481
of the tax law, as amended by section 1 of part O of chapter 59 of the
laws of 2013, is amended to read as follows:
(i) In addition to any other penalty imposed by this article, the
commissioner may (A) impose a penalty of not more than six hundred
dollars for each two hundred cigarettes, or fraction thereof, in excess
of one thousand cigarettes in unstamped or unlawfully stamped packages
in the possession or under the control of any person or (B) impose a
penalty of not more than two hundred dollars for each ten unaffixed
false, altered or counterfeit cigarette tax stamps, imprints or
impressions, or fraction thereof, in the possession or under the control
of any person. In addition, the commissioner may impose a penalty of not
more than seventy-five dollars for each fifty cigars [or], one pound of
tobacco, OR FIFTEEN UNITS OF ALTERNATIVE NICOTINE PRODUCTS, or fraction
thereof, in excess of two hundred fifty cigars [or], five pounds of
tobacco, OR SEVENTY-FIVE UNITS OF ALTERNATIVE NICOTINE PRODUCTS, in the
possession or under the control of any person and a penalty of not more
than one hundred fifty dollars for each fifty cigars [or], pound of
tobacco, OR FIFTEEN UNITS OF ALTERNATIVE NICOTINE PRODUCTS, or fraction
thereof, in excess of five hundred cigars [or], ten pounds of tobacco,
OR ONE HUNDRED FIFTY UNITS OF ALTERNATIVE NICOTINE PRODUCTS, in the
possession or under the control of any person, with respect to which the
A. 10009--B 28
tobacco products tax has not been paid or assumed by a distributor or
tobacco products dealer; provided, however, that any such penalty
imposed shall not exceed seven thousand five hundred dollars in the
aggregate. The commissioner may impose a penalty of not more than seven-
ty-five dollars for each fifty cigars [or], one pound of tobacco, OR
FIFTEEN UNITS OF ALTERNATIVE NICOTINE PRODUCTS, or fraction thereof, in
excess of fifty cigars [or], one pound of tobacco, OR FIFTEEN UNITS OF
ALTERNATIVE NICOTINE PRODUCTS, in the possession or under the control of
any tobacco products dealer or distributor appointed by the commission-
er, and a penalty of not more than one hundred fifty dollars for each
fifty cigars [or], pound of tobacco, OR FIFTEEN UNITS OF ALTERNATIVE
NICOTINE PRODUCTS, or fraction thereof, in excess of two hundred fifty
cigars [or], five pounds of tobacco, OR SEVENTY-FIVE UNITS OF ALTERNA-
TIVE NICOTINE PRODUCTS, in the possession or under the control of any
such dealer or distributor, with respect to which the tobacco products
tax has not been paid or assumed by a distributor or a tobacco products
dealer; provided, however, that any such penalty imposed shall not
exceed fifteen thousand dollars in the aggregate.
§ 5. Clauses (B) and (C) of subparagraph (ii) of paragraph (b) of
subdivision 1 of section 481 of the tax law, as added by chapter 262 of
the laws of 2000, are amended to read as follows:
(B)(I) not less than twenty-five dollars but not more than one hundred
dollars for each fifty cigars [or], one pound of tobacco, OR FIFTEEN
UNITS OF ALTERNATIVE NICOTINE PRODUCTS, or fraction thereof, in excess
of two hundred fifty cigars [or], five pounds of tobacco, OR SEVENTY-
FIVE UNITS OF ALTERNATIVE NICOTINE PRODUCTS, knowingly in the possession
or knowingly under the control of any person, with respect to which the
tobacco products tax has not been paid or assumed by a distributor or
tobacco products dealer; and
(II) not less than fifty dollars but not more than two hundred dollars
for each fifty cigars [or], pound of tobacco, OR FIFTEEN UNITS OF ALTER-
NATIVE NICOTINE PRODUCTS, or fraction thereof, in excess of five hundred
cigars [or], ten pounds of tobacco, OR ONE HUNDRED FIFTY UNITS OF ALTER-
NATIVE NICOTINE PRODUCTS, knowingly in the possession or knowingly under
the control of any person, with respect to which the tobacco products
tax has not been paid or assumed by a distributor or tobacco products
dealer; provided, however, that any such penalty imposed under this
clause shall not exceed ten thousand dollars in the aggregate.
(C)(I) not less than twenty-five dollars but not more than one hundred
dollars for each fifty cigars [or], one pound of tobacco, OR FIFTEEN
UNITS OF ALTERNATIVE NICOTINE PRODUCTS, or fraction thereof, in excess
of fifty cigars [or], one pound of tobacco, OR FIFTEEN UNITS OF ALTERNA-
TIVE NICOTINE PRODUCTS, knowingly in the possession or knowingly under
the control of any person, with respect to which the tobacco products
tax has not been paid or assumed by a distributor or tobacco products
dealer; and
(II) not less than fifty dollars but not more than two hundred dollars
for each fifty cigars [or], pound of tobacco, OR FIFTEEN UNITS OF ALTER-
NATIVE NICOTINE PRODUCTS, or fraction thereof, in excess of two hundred
fifty cigars [or], five pounds of tobacco, OR SEVENTY-FIVE UNITS OF
ALTERNATIVE NICOTINE PRODUCTS, knowingly in the possession or knowingly
under the control of any person, with respect to which the tobacco
products tax has not been paid or assumed by a distributor or a tobacco
products dealer; provided, however, that any such penalty imposed under
this clause shall not exceed twenty thousand dollars in the aggregate.
A. 10009--B 29
§ 6. Paragraph (a) of subdivision 2 of section 481 of the tax law, as
amended by chapter 552 of the laws of 2008, is amended to read as
follows:
(a) The possession within this state of more than four hundred ciga-
rettes in unstamped or unlawfully stamped packages or more than two
hundred fifty cigars, or more than five pounds of tobacco other than
roll-your-own tobacco, or more than thirty-six ounces of roll-your-own
tobacco, OR MORE THAN SEVENTY-FIVE UNITS OF ALTERNATIVE NICOTINE
PRODUCTS, by any person other than an agent or distributor, as the case
may be, at any one time shall be presumptive evidence that such ciga-
rettes or tobacco products are subject to tax as provided by this arti-
cle.
§ 7. Section 482 of the tax law is amended by adding a new subdivision
(c) to read as follows:
(C) FROM THE TAXES, INTEREST AND PENALTIES COLLECTED OR RECEIVED BY
THE COMMISSIONER UNDER SECTION FOUR HUNDRED SEVENTY-ONE-B OF THIS ARTI-
CLE, EFFECTIVE APRIL FIRST, TWO THOUSAND TWENTY-SEVEN, FIFTY MILLION
DOLLARS FROM THE MONEYS COLLECTED OR RECEIVED UNDER SUCH SECTION SHALL
BE DEPOSITED ANNUALLY TO THE CREDIT OF THE TOBACCO CONTROL AND INSURANCE
INITIATIVES POOL TO BE ESTABLISHED AND DISTRIBUTED BY THE COMMISSIONER
OF HEALTH IN ACCORDANCE WITH SECTION TWENTY-EIGHT HUNDRED SEVEN-V OF THE
PUBLIC HEALTH LAW.
§ 8. Subdivisions (a) and (h) of section 1814 of the tax law, as
amended by section 28 of subpart I of part V1 of chapter 57 of the laws
of 2009, are amended to read as follows:
(a) Any person who willfully attempts in any manner to evade or defeat
the taxes imposed by article twenty of this chapter or payment thereof
on (i) ten thousand cigarettes or more, (ii) twenty-two thousand cigars
or more, [or] (iii) four hundred forty pounds of tobacco or more, OR
(IV) SIX THOUSAND SIX HUNDRED UNITS OF ALTERNATIVE NICOTINE PRODUCTS OR
MORE, or has previously been convicted two or more times of a violation
of paragraph one of this subdivision shall be guilty of a class E felo-
ny.
(h) (1) Any dealer, other than a distributor appointed by the commis-
sioner of taxation and finance under article twenty of this chapter, who
shall knowingly transport or have in [his] THEIR custody, possession or
under [his] THEIR control more than ten pounds of tobacco [or], more
than five hundred cigars, OR MORE THAN ONE HUNDRED FIFTY UNITS OF ALTER-
NATIVE NICOTINE PRODUCTS, upon which the taxes imposed by article twenty
of this chapter have not been assumed or paid by a distributor appointed
by the commissioner of taxation and finance under article twenty of this
chapter, or other person treated as a distributor pursuant to section
four hundred seventy-one-d of this chapter, shall be guilty of a misde-
meanor punishable by a fine of not more than five thousand dollars or by
a term of imprisonment not to exceed thirty days.
(2) Any person, other than a dealer or a distributor appointed by the
commissioner under article twenty of this chapter, who shall knowingly
transport or have in [his] THEIR custody, possession or under [his]
THEIR control more than fifteen pounds of tobacco [or], more than seven
hundred fifty cigars, OR MORE THAN TWO HUNDRED TWENTY-FIVE UNITS OF
ALTERNATIVE NICOTINE PRODUCTS, upon which the taxes imposed by article
twenty of this chapter have not been assumed or paid by a distributor
appointed by the commissioner under article twenty of this chapter, or
other person treated as a distributor pursuant to section four hundred
seventy-one-d of this chapter shall be guilty of a misdemeanor punisha-
A. 10009--B 30
ble by a fine of not more than five thousand dollars or by a term of
imprisonment not to exceed thirty days.
(3) Any person, other than a distributor appointed by the commissioner
under article twenty of this chapter, who shall knowingly transport or
have in [his] THEIR custody, possession or under [his] THEIR control
twenty-five hundred or more cigars [or], fifty or more pounds of
tobacco, OR SEVEN HUNDRED FIFTY UNITS OR MORE OF ALTERNATIVE NICOTINE
PRODUCTS, upon which the taxes imposed by article twenty of this chapter
have not been assumed or paid by a distributor appointed by the commis-
sioner under article twenty of this chapter, or other person treated as
a distributor pursuant to section four hundred seventy-one-d of this
chapter shall be guilty of a misdemeanor. Provided further, that any
person who has twice been convicted under this subdivision shall be
guilty of a class E felony for any subsequent violation of this section,
regardless of the amount of tobacco products involved in such violation.
(4) For purposes of this subdivision, such person shall knowingly
transport or have in [his] THEIR custody, possession or under [his]
THEIR control tobacco [or], cigars, OR ALTERNATIVE NICOTINE PRODUCTS, on
which such taxes have not been assumed or paid by a distributor
appointed by the commissioner where such person has knowledge of the
requirement of the tax on tobacco products and, where to [his] THEIR
knowledge, such taxes have not been assumed or paid on such tobacco
products by a distributor appointed by the commissioner of taxation and
finance.
§ 9. Section 1814-a of the tax law, as added by chapter 61 of the laws
of 1989, is amended to read as follows:
§ 1814-a. Person not appointed as a tobacco products distributor. (a)
Any person who, while not appointed as a distributor of tobacco products
pursuant to the provisions of article twenty of this chapter, imports or
causes to be imported into the state more than fifty cigars [or], more
than one pound of tobacco, OR MORE THAN FIFTEEN UNITS OF ALTERNATIVE
NICOTINE PRODUCTS, for sale within the state, or produces, manufactures
or compounds tobacco products within the state shall be guilty of a
misdemeanor punishable by a fine of not more than five thousand dollars
or by a term of imprisonment not to exceed thirty days. If, within any
ninety day period, one thousand or more cigars, or five hundred pounds
or more of tobacco, OR SEVEN THOUSAND FIVE HUNDRED UNITS OR MORE OF
ALTERNATIVE NICOTINE PRODUCTS, are imported or caused to be imported
into the state for sale within the state or are produced, manufactured
or compounded within the state by any person while not appointed as a
distributor of tobacco products, such person shall be guilty of a misde-
meanor. Provided further, that any person who has twice been convicted
under this section shall be guilty of a class E felony for any subse-
quent violation of this section, regardless of the amount of tobacco
products involved in such violation.
(b) For purposes of this section, the possession or transportation
within this state by any person, other than a tobacco products distribu-
tor appointed by the commissioner of taxation and finance, at any one
time of seven hundred fifty or more cigars [or], fifteen pounds or more
of tobacco, OR TWO HUNDRED TWENTY-FIVE UNITS OR MORE OF ALTERNATIVE
NICOTINE PRODUCTS, shall be presumptive evidence that such tobacco
products are possessed or transported for the purpose of sale and are
subject to the tax imposed by section four hundred seventy-one-b of this
chapter. With respect to such possession or transportation, any
provisions of article twenty of this chapter providing for a time period
A. 10009--B 31
during which the tax imposed by such article may be paid shall not
apply.
§ 10. Subdivision (a) of section 1846-a of the tax law, as amended by
chapter 556 of the laws of 2011, is amended to read as follows:
(a) Whenever a police officer designated in section 1.20 of the crimi-
nal procedure law or a peace officer designated in subdivision four of
section 2.10 of such law, acting pursuant to [his] THEIR special duties,
shall discover any tobacco products in excess of five hundred cigars
[or], ten pounds of tobacco, OR ONE HUNDRED FIFTY UNITS OF ALTERNATIVE
NICOTINE PRODUCTS, which are [being imported for] POSSESSED FOR THE
PURPOSE OF sale in the state [where the person importing or causing]
WHEN THE EXCISE TAXES ON such tobacco products [to be imported has not
been appointed as] HAVE NOT BEEN ASSUMED OR PAID BY a distributor
APPOINTED pursuant to section four hundred seventy-two of this chapter,
such police officer or peace officer is hereby authorized and empowered
forthwith to seize and take possession of such tobacco products. Such
tobacco products seized by a police officer or peace officer shall be
turned over to the commissioner. Such seized tobacco products shall be
forfeited to the state. All tobacco products forfeited to the state
shall be destroyed or used for law enforcement purposes, except that
tobacco products that violate, or are suspected of violating, federal
trademark laws or import laws shall not be used for law enforcement
purposes. If the commissioner determines the tobacco products may not be
used for law enforcement purposes, the commissioner must, within a
reasonable time thereafter, upon publication in the state registry of a
notice to such effect before the day of destruction, destroy such
forfeited tobacco products. The commissioner may, prior to any
destruction of tobacco products, permit the true holder of the trademark
rights in the tobacco products to inspect such forfeited products in
order to assist in any investigation regarding such tobacco products.
§ 11. Subdivision (b) of section 1847 of the tax law, as added by
chapter 61 of the laws of 1989, is amended to read as follows:
(b) Any peace officer designated in subdivision four of section 2.10
of the criminal procedure law, acting pursuant to [his] THEIR special
duties, or any police officer designated in section 1.20 of the criminal
procedure law may seize any vehicle or other means of transportation
used to import tobacco products in excess of five hundred cigars [or],
ten pounds of tobacco, OR ONE HUNDRED FIFTY UNITS OF ALTERNATIVE NICO-
TINE PRODUCTS, for sale where the person importing or causing such
tobacco products to be imported has not been appointed a distributor
pursuant to section four hundred seventy-two of this chapter, other than
a vehicle or other means of transportation used by any person as a
common carrier in transaction of business as such common carrier, and
such vehicle or other means of transportation shall be subject to
forfeiture as hereinafter in this section provided.
§ 12. Subdivisions (a) and (b) of section 92-dd of the state finance
law, subdivision (a) as amended by section 2 of part UU of chapter 59 of
the laws of 2019 and subdivision (b) as amended by section 3 of part T
of chapter 61 of the laws of 2011, are amended to read as follows:
(a) On and after April first, two thousand five, such fund shall
consist of the revenues heretofore and hereafter collected or required
to be deposited pursuant to paragraph (a) of subdivision eighteen of
section twenty-eight hundred seven-c, and sections twenty-eight hundred
seven-j, twenty-eight hundred seven-s and twenty-eight hundred seven-t
of the public health law, [subdivision] SUBDIVISIONS (b) AND (C) of
section four hundred eighty-two and section eleven hundred eighty-six of
A. 10009--B 32
the tax law and required to be credited to the tobacco control and
insurance initiatives pool, subparagraph (O) of paragraph four of
subsection (j) of section four thousand three hundred one of the insur-
ance law, section twenty-seven of part A of chapter one of the laws of
two thousand two and all other moneys credited or transferred thereto
from any other fund or source pursuant to law.
(b) The pool administrator under contract with the commissioner of
health pursuant to section twenty-eight hundred seven-y of the public
health law shall continue to collect moneys required to be collected or
deposited pursuant to paragraph (a) of subdivision eighteen of section
twenty-eight hundred seven-c, and sections twenty-eight hundred seven-j,
twenty-eight hundred seven-s and twenty-eight hundred seven-t of the
public health law, and shall deposit such moneys in the HCRA resources
fund. The comptroller shall deposit moneys collected or required to be
deposited pursuant to [subdivision] SUBDIVISIONS (b) AND (C) of section
four hundred eighty-two of the tax law and required to be credited to
the tobacco control and insurance initiatives pool, subparagraph (O) of
paragraph four of subsection (j) of section four thousand three hundred
one of the insurance law, section twenty-seven of part A of chapter one
of the laws of two thousand two and all other moneys credited or trans-
ferred thereto from any other fund or source pursuant to law in the HCRA
resources fund.
§ 13. Notwithstanding any other provision of law to the contrary, the
units of alternative nicotine products possessed in New York state as of
11:59 pm eastern standard time on August 31, 2026, by any person for
sale shall be subject to tax pursuant to section 471-b of the tax law,
and shall be remitted by September 21, 2026, in the form and manner
prescribed by the commissioner of taxation and finance.
§ 14. This act shall take effect immediately, and shall apply to all
sales of alternative nicotine products on or after September 1, 2026.
PART L
Section 1. The article heading of article 28-C of the tax law, as
added by section 1 of part UU of chapter 59 of the laws of 2019, is
amended to read as follows:
[SUPPLEMENTAL] TAX ON VAPOR PRODUCTS
§ 2. Section 1180 of the tax law, as added by section 1 of part UU of
chapter 59 of the laws of 2019, is amended to read as follows:
§ 1180. Definitions. For the purposes of the taxes imposed by this
article, the following [terms shall mean] DEFINITIONS SHALL APPLY:
(a) "Vapor product" means any noncombustible liquid or gel, regardless
of the presence of nicotine therein, that is manufactured [in to] INTO a
finished product for use in an electronic cigarette, electronic cigar,
electronic cigarillo, electronic pipe, vaping pen, hookah pen or other
similar device. "Vapor product" shall not include any product approved
by the United States food and drug administration as a drug or medical
device, or manufactured and dispensed pursuant to title five-A of arti-
cle thirty-three of the public health law.
(b) "Vapor products dealer" means a person [licensed by the commis-
sioner to sell] WHO SELLS vapor products AT RETAIL TO A PERSON in this
state.
(C) "VAPOR PRODUCTS DISTRIBUTOR" MEANS ANY PERSON WHO IMPORTS OR CAUS-
ES TO BE IMPORTED INTO THIS STATE ANY VAPOR PRODUCTS OR WHO MANUFACTURES
ANY VAPOR PRODUCTS IN THIS STATE; PROVIDED, HOWEVER, WHERE A VAPOR
A. 10009--B 33
PRODUCTS DEALER ALSO IMPORTS VAPOR PRODUCTS OR CAUSES VAPOR PRODUCTS TO
BE IMPORTED INTO THIS STATE FOR SALE, OR MANUFACTURES VAPOR PRODUCTS FOR
SALE IN THIS STATE, SUCH VAPOR PRODUCTS DEALER SHALL ALSO BE A VAPOR
PRODUCTS DISTRIBUTOR.
(D) "CONTRABAND VAPOR PRODUCTS" MEANS ANY VAPOR PRODUCTS THAT ARE: (1)
POSSESSED BY A VAPOR PRODUCTS DEALER OR VAPOR PRODUCTS DISTRIBUTOR WHO
DOES NOT POSSESS A VALID CERTIFICATE OF REGISTRATION OR WHOSE CERTIF-
ICATE OF REGISTRATION HAS BEEN REVOKED; (2) POSSESSED BY A VAPOR
PRODUCTS DISTRIBUTOR OR VAPOR PRODUCTS DEALER UPON WHICH THE TAX IMPOSED
BY THIS ARTICLE IS DUE AND HAS NOT BEEN PAID; OR (3) POSSESSED IN THIS
STATE THAT ARE NOT LISTED ON THE VAPOR PRODUCTS REGISTRY PURSUANT TO
SECTION ELEVEN HUNDRED EIGHTY-SEVEN OF THIS ARTICLE.
(E) "UNIT" MEANS THE INDIVIDUAL PACKAGE, BOX, CARTON, CANISTER OR
CONTAINER OF ANY KIND, OR, IF NO OTHER CONTAINER, ANY WRAPPING IN OR
FROM WHICH RETAIL SALES OF VAPOR PRODUCTS ARE MADE OR INTENDED TO BE
MADE AS SUCH VAPOR PRODUCT IS PACKAGED BY THE MANUFACTURER OF SUCH VAPOR
PRODUCTS.
§ 3. Section 1181 of the tax law, as amended by chapter 92 of the laws
of 2021, is amended to read as follows:
§ 1181. Imposition of tax. (A)(1) IN ADDITION TO ANY OTHER TAX
IMPOSED BY THIS CHAPTER OR OTHER LAW, THERE IS HEREBY IMPOSED A TAX ON
EACH UNIT OF VAPOR PRODUCTS FIRST IMPORTED INTO OR MANUFACTURED IN THE
STATE BY A VAPOR PRODUCTS DISTRIBUTOR AT THE RATE OF FIFTY-FIVE CENTS
PER UNIT OF VAPOR PRODUCT THAT SHALL ACCRUE AT THE TIME OF FIRST IMPORT
OR MANUFACTURE IN THE STATE.
(2) THE TAX IMPOSED BY THIS SUBDIVISION SHALL BE PASSED THROUGH FROM
THE VAPOR PRODUCTS DISTRIBUTOR TO THE VAPOR PRODUCTS DEALER AT THE TIME
THE VAPOR PRODUCTS DISTRIBUTOR SELLS OR TRANSFERS SUCH VAPOR PRODUCTS TO
A VAPOR PRODUCTS DEALER. UPON EACH SALE OR TRANSFER OF VAPOR PRODUCTS,
OTHER THAN A SALE AT RETAIL, THE VAPOR PRODUCTS DISTRIBUTOR SHALL
PROVIDE TO THE VAPOR PRODUCTS DEALER AT THE TIME OF DELIVERY OF SUCH
PRODUCTS, AN INVOICE PURSUANT TO SUBDIVISION (D) OF SECTION ELEVEN
HUNDRED EIGHTY-FOUR OF THIS ARTICLE, WHICH INCLUDES TAXES PAID BY THE
DISTRIBUTOR.
(3) IT SHALL BE PRESUMED THAT ALL VAPOR PRODUCTS POSSESSED WITHIN THE
STATE BY A VAPOR PRODUCTS DEALER ARE SUBJECT TO THE VAPOR PRODUCTS
DISTRIBUTOR TAX UNTIL THE CONTRARY IS ESTABLISHED AND THE BURDEN TO
ESTABLISH THAT ANY VAPOR PRODUCTS ARE NOT TAXABLE HEREUNDER SHALL BE
UPON THE VAPOR PRODUCTS DEALER IN POSSESSION OR CONTROL OF SUCH VAPOR
PRODUCTS.
(4) EVERY VAPOR PRODUCTS DEALER SHALL BE LIABLE FOR THE TAX ON VAPOR
PRODUCTS IN THEIR POSSESSION UPON WHICH TAX HAS NOT BEEN PAID BY A
DISTRIBUTOR, AND THE FAILURE OF ANY VAPOR PRODUCTS DEALER TO PRODUCE AND
EXHIBIT TO THE COMMISSIONER UPON DEMAND THE INVOICE PROVIDED BY A VAPOR
PRODUCTS DISTRIBUTOR FOR ANY VAPOR PRODUCTS IN THEIR POSSESSION SHALL BE
PRESUMPTIVE EVIDENCE THAT THE TAX THEREON HAS NOT BEEN PAID, AND THAT
SUCH DEALER IS LIABLE FOR THE TAX THEREON UNLESS EVIDENCE OF SUCH
INVOICE OR PAYMENT SHALL LATER BE PRODUCED.
(B) In addition to any other tax imposed by this chapter or other law,
there is hereby imposed a tax of twenty percent on receipts from the
retail sale of vapor products sold in this state. The tax is imposed on
the purchaser and collected by the vapor products dealer as defined in
subdivision (b) of section eleven hundred eighty of this article, in
trust for and on account of the state.
(C) The taxes imposed under this section shall not apply to adult-use
cannabis products subject to tax under article twenty-C of this chapter.
A. 10009--B 34
§ 4. Section 1183 of the tax law, as added by section 1 of part UU of
chapter 59 of the laws of 2019, is amended to read as follows:
§ 1183. Vapor products [dealer] registration and renewal. (a) Every
[person who intends to sell vapor products] VAPOR PRODUCTS DISTRIBUTOR
AND VAPOR PRODUCTS DEALER in this state must [receive from the commis-
sioner] FILE WITH THE COMMISSIONER A PROPERLY COMPLETED APPLICATION FOR
a certificate of registration AND OBTAIN SUCH CERTIFICATE TWENTY DAYS
prior to [engaging in business] THE FIRST IMPORT, MANUFACTURE, OR SALE
OF VAPOR PRODUCTS. Such person must electronically submit a properly
completed application for a certificate of registration [for each
location at which vapor products will be sold in this state,] on a form
prescribed by the commissioner[,] and SUCH APPLICATION shall be accompa-
nied by a non-refundable application fee of three hundred dollars. A
VAPOR PRODUCTS DEALER SHALL APPLY FOR A CERTIFICATE OF REGISTRATION FOR
EACH LOCATION AT WHICH VAPOR PRODUCTS WILL BE SOLD AT RETAIL IN THIS
STATE.
(b) A [vapor products dealer] certificate of registration shall be
valid for the calendar year for which it is issued unless earlier
[suspended or] revoked. Upon the expiration of the term stated on the
certificate of registration, such certificate shall be null and void. A
certificate of registration shall not be assignable or transferable and
shall be destroyed immediately upon [the vapor products dealer] THE
PERSON TO WHOM SUCH CERTIFICATE IS ISSUED ceasing to do business as
specified in such certificate or in the event that such business never
commenced.
(c) (1) Every [vapor product dealer] PERSON TO WHOM A CERTIFICATE IS
ISSUED UNDER THIS ARTICLE shall publicly display a vapor products [deal-
er] certificate of registration in each place of business in this state
where vapor products are FIRST IMPORTED, MANUFACTURED, OR sold [at
retail]. A vapor products dealer who has no regular place of business
shall publicly display such valid certificate on each of its carts,
stands, trucks or other merchandising devices through which it sells
vapor products.
(2) NO VAPOR PRODUCTS DISTRIBUTOR SHALL SELL ANY VAPOR PRODUCT TO ANY
VAPOR PRODUCTS DEALER WHO IS NOT REGISTERED PURSUANT TO THIS SECTION, OR
WHOSE REGISTRATION HAS BEEN REVOKED. NO VAPOR PRODUCTS DEALER SHALL
PURCHASE ANY VAPOR PRODUCTS FROM A VAPOR PRODUCTS DISTRIBUTOR WHO IS NOT
REGISTERED PURSUANT TO THIS SECTION, OR WHOSE REGISTRATION HAS BEEN
REVOKED.
(d) (1) The commissioner shall refuse to issue a certificate of regis-
tration PURSUANT TO THIS SECTION to any applicant who IS REQUIRED TO BUT
does not possess a valid certificate of authority under section eleven
hundred thirty-four of this chapter. In addition, the commissioner may
refuse to issue a certificate of registration[, or suspend, cancel] or
revoke a certificate of registration issued to any person who: (A) has a
past-due liability as that term is defined in section one hundred seven-
ty-one-v of this chapter; (B) has had a certificate of registration
under this article or any license or registration provided for in this
chapter revoked [within one year from the date on which such application
was filed]; (C) has been convicted of a crime provided for in this chap-
ter [within one year from the date on which such application was filed];
(D) willfully fails to file a report or return required by this article;
(E) willfully files, causes to be filed, gives or causes to be given a
report, return, certificate or affidavit required by this article which
is false; (F) willfully fails to collect or truthfully account for or
pay over any tax imposed by this [article] CHAPTER; [or] (G) HAS HAD A
A. 10009--B 35
PENALTY IMPOSED PURSUANT TO PARAGRAPH THREE, FOUR, FIVE, OR SIX OF
SUBDIVISION (C) OF SECTION ELEVEN HUNDRED EIGHTY-FIVE OF THIS ARTICLE
WITHIN ONE YEAR FROM THE DATE ON WHICH SUCH APPLICATION WAS FILED; OR
(H) whose place of business is at the same premises as that of a person
whose VAPOR PRODUCTS DISTRIBUTOR REGISTRATION OR vapor products dealer
registration has been revoked and where such revocation is still in
effect, unless the applicant or vapor products DISTRIBUTOR OR VAPOR
PRODUCTS dealer, AS THE CASE MAY BE, provides the commissioner with
adequate documentation demonstrating that such applicant or vapor
products DISTRIBUTOR OR VAPOR PRODUCTS dealer acquired the premises or
business through an arm's length transaction as defined in paragraph (e)
of subdivision one of section four hundred eighty-a of this chapter AND
THE SALE OR LEASE WAS NOT CONDUCTED, IN WHOLE OR IN PART, FOR THE
PURPOSE OF PERMITTING THE ORIGINAL REGISTRANT TO AVOID THE EFFECT OF THE
PREVIOUS REVOCATION FOR THE SAME PREMISES.
(2) In addition to the grounds provided in paragraph one of this
subdivision, the commissioner shall refuse to issue a certificate of
registration and shall [cancel or suspend] REVOKE a certificate of
registration as directed by an enforcement officer pursuant to article
thirteen-F of the public health law. Notwithstanding any provision of
law to the contrary, an applicant whose application for a certificate of
registration is refused or a vapor products DISTRIBUTOR OR VAPOR
PRODUCTS dealer whose registration is [cancelled or suspended] REVOKED
under this paragraph shall have no right to a hearing under this chapter
and shall have no right to commence a court action or proceeding or to
any other legal recourse against the commissioner with respect to such
refusal[, suspension or cancellation] OR REVOCATION; provided, however,
that nothing herein shall be construed to deny a vapor products DISTRIB-
UTOR OR VAPOR PRODUCTS dealer a hearing under article thirteen-F of the
public health law or to prohibit vapor products DISTRIBUTOR OR VAPOR
PRODUCTS dealers from commencing a court action or proceeding against an
enforcement officer as defined in section thirteen hundred ninety-nine-
aa of the public health law.
(3) NO PERSON WHOSE REGISTRATION HAS BEEN REVOKED PURSUANT TO THIS
SECTION SHALL POSSESS VAPOR PRODUCTS IN ANY PLACE OF BUSINESS, CART,
STAND, TRUCK OR OTHER MERCHANDISING DEVICE THROUGH WHICH IT SELLS IN
THIS STATE BEGINNING ON THE TENTH DAY AFTER SUCH REVOCATION AND CONTINU-
ING FOR THE DURATION OF THE SAME; PROVIDED, HOWEVER, THAT SUCH PERSON
SHALL NOT BE PROHIBITED BEFORE THE TENTH DAY AFTER SUCH REVOCATION FROM
SELLING OR TRANSFERRING SUCH INVENTORY OF VAPOR PRODUCT PROPERLY LISTED
ON THE VAPOR PRODUCTS REGISTRY PURSUANT TO SECTION ELEVEN HUNDRED EIGHT-
Y-SEVEN OF THIS ARTICLE ON WHICH TAXES IMPOSED BY THIS ARTICLE HAVE BEEN
PAID TO A PROPERLY REGISTERED VAPOR PRODUCTS DEALER WHOSE REGISTRATION
HAS NOT BEEN REVOKED.
(e) If a vapor products [dealer] CERTIFICATE OF REGISTRATION is
[suspended, cancelled or] revoked and [such vapor products dealer] THE
HOLDER OF SUCH CERTIFICATE sells vapor products through more than one
place of business in this state, the [vapor products dealer's] certif-
icate of registration issued to that place of business, cart, stand,
truck or other merchandising device, where such violation occurred,
shall be [suspended,] revoked [or cancelled]. Provided, however, upon a
[vapor products dealer's] HOLDER OF A CERTIFICATE OF REGISTRATION'S
third [suspension, cancellation or] revocation within a five-year period
for any one or more businesses owned or operated by [the vapor products
dealer] SUCH PERSON, such [suspension, cancellation, or] revocation of
the [vapor products dealer's] certificate of registration shall apply to
A. 10009--B 36
all places of business where [he or she] SUCH PERSON sells vapor
products in this state.
(f) Every holder of a certificate of registration must notify the
commissioner of changes to any of the information stated on the certif-
icate or changes to any information contained in the application for the
certificate of registration. Such notification must be made on or before
the last day of the month in which a change occurs and must be made
electronically on a form prescribed by the commissioner.
(g) Every vapor products DISTRIBUTOR AND VAPOR PRODUCTS dealer who
holds a certificate of registration under this [article] SECTION shall
be required to reapply for a certificate of registration for the follow-
ing calendar year on or before the twentieth day of September and such
reapplication shall be subject to the same requirements and conditions,
including grounds for refusal, as an initial registration under this
[article] SECTION, including but not limited to the payment of the three
hundred dollar application fee for each retail location.
(h) In addition to any other penalty imposed by this chapter, any
vapor products DISTRIBUTOR OR VAPOR PRODUCTS dealer who violates the
provisions of this section, (1) for a first violation is liable for a
civil [fine] PENALTY not less than five thousand dollars but not to
exceed twenty-five thousand dollars and such certificate of registration
may be [suspended] REVOKED for a period of not more than six months; and
(2) for a second or subsequent violation within three years following a
prior violation of this section, is liable for a civil [fine] PENALTY
not less than ten thousand dollars but not to exceed thirty-five thou-
sand dollars and such certificate of registration may be [suspended]
REVOKED for a period of up to thirty-six months; or (3) for a third
violation within a period of five years, its vapor products certificate
or certificates of registration issued to each place of business owned
or operated by the vapor products DISTRIBUTOR OR VAPOR PRODUCTS dealer
in this state, shall be revoked for a period of up to five years.
§ 5. Section 1184 of the tax law, as added by section 1 of part UU of
chapter 59 of the laws of 2019, is amended to read as follows:
§ 1184. Administrative provisions. (a) Except as otherwise provided
for in this article, the taxes imposed by this article shall be adminis-
tered and collected in a like manner as and jointly with the taxes
imposed by sections eleven hundred five and eleven hundred ten of this
chapter. In addition, except as otherwise provided in this article, all
of the provisions of article twenty-eight of this chapter (except
sections eleven hundred seven, eleven hundred eight, eleven hundred
nine, and eleven hundred forty-eight) relating to or applicable to the
administration, collection and review of the taxes imposed by such
sections eleven hundred five and eleven hundred ten, including, but not
limited to, the provisions relating to definitions, returns, exemptions,
penalties, tax secrecy, personal liability for the tax, and collection
of tax from the customer, shall apply to the taxes imposed by this arti-
cle so far as such provisions can be made applicable to the taxes
imposed by this article with such limitations as set forth in this arti-
cle and such modifications as may be necessary in order to adapt such
language to the taxes so imposed. Such provisions shall apply with the
same force and effect as if the language of those provisions had been
set forth in full in this article except to the extent that any
provision is either inconsistent with a provision of this article or is
not relevant to the taxes imposed by this article.
(b) Notwithstanding the provisions of subdivision (a) of this section,
the exemptions provided in paragraph ten of subdivision (a) of section
A. 10009--B 37
eleven hundred fifteen of this chapter, and the provisions of section
eleven hundred sixteen, except those provided in paragraphs one, two,
three and six of subdivision (a) of such section, shall not apply to the
taxes imposed by this article.
(c) Notwithstanding the provisions of this section or section eleven
hundred forty-six of this chapter, the commissioner may, in [his or her]
THEIR discretion, permit the commissioner of health or [his or her]
THEIR authorized representative to inspect any return related to the
[tax] TAXES imposed by this article and may furnish to the commissioner
of health any such return or supply [him or her] SUCH COMMISSIONER with
information concerning an item contained in any such return, or
disclosed by any investigation of a liability under this article.
(D) EVERY VAPOR PRODUCTS DISTRIBUTOR AND VAPOR PRODUCTS DEALER ON WHOM
TAX IS IMPOSED UNDER THIS ARTICLE SHALL MAINTAIN COMPLETE AND ACCURATE
RECORDS IN SUCH FORM AS THE COMMISSIONER MAY REQUIRE AND SHALL PROVIDE
SUCH RECORDS TO THE COMMISSIONER UPON REQUEST. EACH VAPOR PRODUCTS
DISTRIBUTOR SHALL MAKE A TRUE DUPLICATE INVOICE, IN THE FORM AND MANNER
PRESCRIBED BY THE COMMISSIONER, THAT IDENTIFIES THE NAME AND ADDRESS OF
THE VAPOR PRODUCTS DISTRIBUTOR, SUCH DISTRIBUTOR'S CERTIFICATE OF REGIS-
TRATION NUMBER ISSUED BY THE COMMISSIONER, THE NAMES AND ADDRESSES OF
ANY CONSIGNORS OR SELLERS, THE NAMES AND ADDRESSES OF THE VAPOR PRODUCTS
DEALER OR ANY CONSIGNEES OR PURCHASERS, THE DATE OF DELIVERY OR
PURCHASE, THE QUANTITIES, BRANDS AND PURCHASE PRICE OF THE VAPOR
PRODUCTS TRANSPORTED, PURCHASED OR DELIVERED, THE AMOUNT OF TAXES PAID
BY SUCH DISTRIBUTOR PURSUANT TO SECTION ELEVEN HUNDRED EIGHTY-ONE OF
THIS ARTICLE ON SUCH VAPOR PRODUCTS, AND ANY OTHER RECORD OR INFORMATION
THE COMMISSIONER MAY REQUIRE. A VAPOR PRODUCTS DISTRIBUTOR SHALL PROVIDE
SUCH INVOICE TO THE VAPOR PRODUCTS DEALER WHEN SUCH VAPOR PRODUCTS ARE
PURCHASED OR RECEIVED. SUCH RECORDS SHALL BE PRESERVED FOR A PERIOD OF
FOUR YEARS AFTER THE FILING OF THE RETURN TO WHICH SUCH RECORDS RELATE
AND SHALL BE PROVIDED TO THE COMMISSIONER UPON REQUEST.
(E) (1) IN ADDITION TO ANY OTHER PENALTY PROVIDED IN THIS CHAPTER OR
OTHERWISE IMPOSED BY LAW, EVERY PERSON SUBJECT TO THE TAXES IMPOSED
UNDER THIS ARTICLE WHO FAILS TO MAINTAIN OR MAKE AVAILABLE TO THE
COMMISSIONER THE RECORDS REQUIRED BY THIS SECTION SHALL BE SUBJECT TO A
PENALTY NOT TO EXCEED ONE THOUSAND DOLLARS FOR EACH MONTH, OR PART THER-
EOF, FOR WHICH THE FAILURE OCCURS. SUCH PENALTY MAY NOT BE IMPOSED MORE
THAN ONCE FOR FAILURES FOR THE SAME MONTHLY PERIOD OR PART THEREOF. IF
THE COMMISSIONER DETERMINES THAT A FAILURE TO MAINTAIN AND MAKE AVAIL-
ABLE RECORDS IN ANY MONTH WAS ENTIRELY DUE TO REASONABLE CAUSE AND NOT
DUE TO WILLFUL NEGLECT, THE COMMISSIONER SHALL ABATE THE PENALTY FOR
THAT MONTH.
(2) THE FAILURE OF ANY VAPOR PRODUCTS DISTRIBUTOR OR VAPOR PRODUCTS
DEALER ON WHOM TAX IS IMPOSED UNDER THIS ARTICLE TO MEET THE REQUIRE-
MENTS MADE APPLICABLE BY SUBDIVISION (A) OF THIS SECTION FOR SUCH VAPOR
PRODUCTS POSSESSED BY SUCH DISTRIBUTOR OR SUCH DEALER SHALL BE PRESUMP-
TIVE EVIDENCE THAT THE TAXES IMPOSED PURSUANT TO SECTION ELEVEN HUNDRED
EIGHTY-ONE OF THIS ARTICLE HAVE NOT BEEN PAID, AND THAT SUCH DISTRIBUTOR
OR DEALER IS LIABLE FOR THE TAXES THEREON UNLESS EVIDENCE OF SUCH
INVOICE, RECEIPT OR PAYMENT SHALL LATER BE PRODUCED.
§ 6. Section 1185 of the tax law, as added by section 1 of part UU of
chapter 59 of the laws of 2019, is amended to read as follows:
§ 1185. [Criminal penalties] ENFORCEMENT. (A) FOR PURPOSES OF THE
EFFICIENT ADMINISTRATION OF THE TAXES IMPOSED BY THIS ARTICLE, IT IS THE
INTENT OF THE LEGISLATURE THAT THE DISTRIBUTION AND SALE OF VAPOR
PRODUCTS BE DEEMED A HEAVILY REGULATED INDUSTRY SUBJECT TO SUPERVISION
A. 10009--B 38
BY THE COMMISSIONER. THE COMMISSIONER IS HEREBY AUTHORIZED TO CONDUCT
REGULATORY INSPECTIONS IN THE SAME MANNER AS A REGULATORY INSPECTION
PURSUANT TO ARTICLE TWENTY OF THIS CHAPTER OF ANY PLACE OF BUSINESS OR
VEHICLE WHERE VAPOR PRODUCTS ARE PLACED, STORED, SOLD OR OFFERED FOR
SALE AND TO EXAMINE THE BOOKS, PAPERS, INVOICES AND OTHER RECORDS OF ANY
PLACE OF BUSINESS OR VEHICLE WHERE VAPOR PRODUCTS ARE PLACED, STORED,
SOLD OR OFFERED FOR SALE. TO VERIFY ACCURACY OF THE TAX IMPOSED AND
ASSESSED BY THIS ARTICLE, ANY VAPOR PRODUCTS DISTRIBUTOR OR VAPOR
PRODUCTS DEALER IN POSSESSION, CONTROL OR OCCUPANCY OF ANY SUCH BUSINESS
OR VEHICLE IS HEREBY DIRECTED AND REQUIRED UPON DEMAND TO GIVE TO THE
COMMISSIONER THE MEANS, FACILITIES, AND OPPORTUNITY FOR SUCH INSPECTIONS
AND EXAMINATIONS.
(B) IF IT IS DETERMINED, AFTER NOTICE AND OPPORTUNITY FOR A HEARING,
THAT A VIOLATION OF THIS ARTICLE HAS OCCURRED THEN SUCH PENALTIES AS
PROVIDED FOR IN THIS ARTICLE MAY BE IMPOSED. NOTHING HEREIN SHALL BE
CONSTRUED TO PROHIBIT THE COMMENCEMENT OF A PROCEEDING FOR INJUNCTIVE
RELIEF TO COMPEL COMPLIANCE WITH THIS ARTICLE.
(C) PENALTIES. (1) The criminal penalties in sections eighteen hundred
one through eighteen hundred seven and eighteen hundred seventeen of
this chapter shall apply to this article with the same force and effect
as if the language of those provisions had been set forth in full in
this article except to the extent that any provision is either incon-
sistent with a provision of this article or is not relevant to the taxes
imposed by this article.
(2) IF ANY PERSON REGISTERED UNDER SECTION ELEVEN HUNDRED EIGHTY-THREE
OF THIS ARTICLE REFUSES TO GIVE THE COMMISSIONER THE MEANS, FACILITIES
AND OPPORTUNITY FOR THE INSPECTIONS AND EXAMINATIONS PROVIDED FOR IN
THIS ARTICLE, SUCH PERSON'S REGISTRATION TO DISTRIBUTE OR TO SELL VAPOR
PRODUCTS IN THIS STATE SHALL BE REVOKED FOR A PERIOD OF ONE YEAR OR, FOR
A SECOND SUCH FAILURE WITHIN A PERIOD OF FIVE YEARS, SUCH REGISTRATION
SHALL BE REVOKED FOR A PERIOD OF THREE YEARS.
(3) IF ANY PERSON REQUIRED TO BE REGISTERED UNDER SECTION ELEVEN
HUNDRED EIGHTY-THREE OF THIS ARTICLE WHO DOES NOT POSSESS A VALID REGIS-
TRATION, OR WHOSE REGISTRATION IS REVOKED, REFUSES TO GIVE THE COMMIS-
SIONER THE MEANS, FACILITIES AND OPPORTUNITY FOR SUCH INSPECTIONS AND
EXAMINATIONS PROVIDED FOR IN THIS ARTICLE, SUCH PERSON SHALL BE SUBJECT
TO A CIVIL PENALTY OF UP TO FOUR THOUSAND DOLLARS FOR THE FIRST SUCH
REFUSAL, AND UP TO EIGHT THOUSAND DOLLARS FOR A SECOND OR ANY SUBSEQUENT
SUCH REFUSAL WITHIN THREE YEARS OF A PRIOR REFUSAL.
(4) ANY VAPOR PRODUCTS DISTRIBUTOR WHO: (I) SELLS VAPOR PRODUCTS TO A
VAPOR PRODUCTS DEALER THAT DOES NOT POSSESS A VALID REGISTRATION UNDER
SECTION ELEVEN HUNDRED EIGHTY-THREE OF THIS ARTICLE, OR WHOSE REGISTRA-
TION IS REVOKED; (II) MANUFACTURES, SELLS, IMPORTS, OR CAUSES TO BE
IMPORTED, INTO THIS STATE ANY CONTRABAND VAPOR PRODUCTS; OR (III) SELLS
CONTRABAND VAPOR PRODUCTS IN THIS STATE SHALL BE SUBJECT TO A CIVIL
PENALTY OF UP TO FOUR THOUSAND DOLLARS FOR THE FIRST SUCH VIOLATION, AND
UP TO EIGHT THOUSAND DOLLARS FOR A SECOND OR ANY SUBSEQUENT VIOLATION
WITHIN THREE YEARS.
(5) ANY VAPOR PRODUCTS DEALER WHO SELLS CONTRABAND VAPOR PRODUCTS IN
THIS STATE SHALL BE LIABLE FOR A CIVIL PENALTY OF UP TO FOUR THOUSAND
DOLLARS FOR A FIRST VIOLATION AND UP TO EIGHT THOUSAND DOLLARS FOR A
SECOND OR ANY SUBSEQUENT VIOLATION WITHIN THREE YEARS FOLLOWING A PRIOR
VIOLATION. THE POSSESSION BY A VAPOR PRODUCTS DEALER OF MORE THAN ONE
HUNDRED UNITS OF ANY VAPOR PRODUCTS IN A RETAIL LOCATION SHALL BE
PRESUMPTIVE EVIDENCE THAT SUCH VAPOR PRODUCTS ARE POSSESSED FOR THE
PURPOSE OF A SALE.
A. 10009--B 39
(6) ANY VAPOR PRODUCTS DEALER WHO PURCHASES VAPOR PRODUCTS FROM ANY
VAPOR PRODUCTS DISTRIBUTOR WHO DOES NOT POSSESS A VALID REGISTRATION
UNDER SECTION ELEVEN HUNDRED EIGHTY-THREE OF THIS ARTICLE, OR WHOSE
REGISTRATION IS REVOKED, SHALL BE SUBJECT TO A CIVIL PENALTY OF UP TO
FOUR THOUSAND DOLLARS FOR THE FIRST SUCH SALE, AND UP TO EIGHT THOUSAND
DOLLARS FOR A SECOND OR ANY SUBSEQUENT SALE WITHIN THREE YEARS.
(D) FORFEITURE AND SEIZURE. (1) THE COMMISSIONER, OR THEIR DULY
AUTHORIZED REPRESENTATIVE, SHALL SEIZE ANY CONTRABAND VAPOR PRODUCTS
FOUND IN ANY PLACE OF BUSINESS OR VEHICLE WHERE SUCH PRODUCTS ARE
PLACED, STORED, SOLD OR OFFERED FOR SALE. SUCH SEIZED CONTRABAND VAPOR
PRODUCTS SHALL BE FORFEITED TO THE STATE. FOLLOWING NOTICE AND OPPORTU-
NITY TO BE HEARD, A DETERMINATION BY THE COMMISSIONER THAT SUCH PRODUCTS
ARE CONTRABAND VAPOR PRODUCTS AND SUCH CONTRABAND VAPOR PRODUCTS ARE NOT
THE SUBJECT OF A CRIMINAL REFERRAL, SUCH CONTRABAND VAPOR PRODUCTS SHALL
BE TURNED OVER TO THE COMMISSIONER OF HEALTH FOR DESTRUCTION.
(2) CONTRABAND VAPOR PRODUCTS THAT HAVE BEEN SEIZED PURSUANT TO THIS
SUBDIVISION THAT ARE THE SUBJECT OF A CRIMINAL REFERRAL SHALL BE HELD IN
THE CUSTODY OF EITHER THE COMMISSIONER OR THE PROSECUTOR UNTIL SUCH TIME
AS THE RELATED CRIMINAL ACTION HAS CONCLUDED.
§ 7. The tax law is amended by adding a new section 1187 to read as
follows:
§ 1187. VAPOR PRODUCTS REGISTRY. (A) THE COMMISSIONER SHALL MAINTAIN A
PUBLICLY AVAILABLE VAPOR PRODUCTS REGISTRY THAT LISTS ALL VAPOR PRODUCTS
THE COMMISSIONER HAS AUTHORIZED TO BE SOLD IN THIS STATE. SUCH REGISTRY
SHALL BE UPDATED AT LEAST MONTHLY.
(B) EVERY MANUFACTURER OF VAPOR PRODUCTS WHOSE VAPOR PRODUCTS ARE SOLD
IN THIS STATE SHALL CERTIFY TO THE COMMISSIONER EACH CALENDAR YEAR, OR
EARLIER AS NECESSARY, ON A FORM AND IN A MANNER PRESCRIBED BY THE
COMMISSIONER, THAT: (1) THE MANUFACTURER HAS RECEIVED A MARKETING
AUTHORIZATION OR SIMILAR ORDER FOR EACH SUCH VAPOR PRODUCT FROM THE
UNITED STATES FOOD AND DRUG ADMINISTRATION PURSUANT TO SECTION THREE
HUNDRED EIGHTY-SEVEN-J OF THE FEDERAL FOOD, DRUG, AND COSMETIC ACT; OR
(2) EACH VAPOR PRODUCT WAS MARKETED IN THE UNITED STATES AS OF AUGUST
EIGHTH, TWO THOUSAND SIXTEEN, A PRE-MARKET TOBACCO PRODUCT APPLICATION
WAS SUBMITTED FOR THE VAPOR PRODUCT TO THE UNITED STATES FOOD AND DRUG
ADMINISTRATION PURSUANT TO SECTION THREE HUNDRED EIGHTY-SEVEN-J OF THE
FEDERAL FOOD, DRUG, AND COSMETIC ACT ON OR BEFORE SEPTEMBER NINTH, TWO
THOUSAND TWENTY, AND EITHER THE APPLICATION REMAINS UNDER REVIEW BY THE
UNITED STATES FOOD AND DRUG ADMINISTRATION OR A FINAL DECISION ON THE
APPLICATION HAS NOT TAKEN EFFECT.
(C)(1) A VAPOR PRODUCTS MANUFACTURER MUST FILE AN APPLICATION FOR
CERTIFICATION TO THE COMMISSIONER OR FOR AN AMENDED CERTIFICATION TO ADD
ADDITIONAL VAPOR PRODUCTS TO THE VAPOR PRODUCTS REGISTRY IF THE VAPOR
PRODUCT SATISFIES THE REQUIREMENTS PROVIDED IN THIS SECTION. SUCH
CERTIFICATION SHALL BE EFFECTIVE FOR THE CALENDAR YEAR IN WHICH IT IS
ISSUED; PROVIDED, HOWEVER, THAT ANY VAPOR PRODUCTS APPROVED BY THE
COMMISSIONER FOR INCLUSION ON THE VAPOR PRODUCTS REGISTRY SHALL ONLY BE
LISTED ON THE REGISTRY AND SOLD IN THIS STATE UNTIL THE END OF THE
CALENDAR YEAR, AT WHICH TIME, A MANUFACTURER THAT INTENDS TO CONTINUE TO
SELL SUCH VAPOR PRODUCTS IN THIS STATE SHALL REAPPLY TO THE COMMISSIONER
FOR SUCH PRODUCTS TO REMAIN ON THE REGISTRY FOR THE NEXT CALENDAR YEAR.
THE APPLICATION SHALL INCLUDE A SCHEDULE, IN THE MANNER PRESCRIBED BY
THE COMMISSIONER, THAT SEPARATELY LISTS EACH OF THE VAPOR PRODUCTS
INTENDED FOR SALE IN THE STATE. THE MANUFACTURER SHALL SUBMIT WITH THE
APPLICATION A NON-REFUNDABLE FEE EQUAL TO ONE THOUSAND FIVE HUNDRED
A. 10009--B 40
DOLLARS PER INDIVIDUAL VAPOR PRODUCT TO BE LISTED ON THE REGISTRY FOR
EACH CALENDAR YEAR.
(2) FOR EACH VAPOR PRODUCT TO BE LISTED ON THE REGISTRY, THE APPLICA-
TION TO THE COMMISSIONER SHALL INCLUDE A COPY OF THE MARKETING AUTHORI-
ZATION OR SIMILAR ORDER FOR THE VAPOR PRODUCT ISSUED BY THE UNITED
STATES FOOD AND DRUG ADMINISTRATION PURSUANT TO SECTION THREE HUNDRED
EIGHTY-SEVEN-J OF THE FEDERAL FOOD, DRUG, AND COSMETIC ACT, AS PROVIDED
UNDER PARAGRAPH ONE OF SUBDIVISION (B) OF THIS SECTION, OR EVIDENCE THAT
THE PRE-MARKET TOBACCO PRODUCT APPLICATION FOR THE VAPOR PRODUCT WAS
SUBMITTED TO THE UNITED STATES FOOD AND DRUG ADMINISTRATION, AS PROVIDED
UNDER PARAGRAPH TWO OF SUBDIVISION (B) OF THIS SECTION AND A FINAL DECI-
SION ON THE APPLICATION HAS NOT TAKEN EFFECT. OTHER INFORMATION, INCLUD-
ING BUT NOT LIMITED TO, THE TWELVE-DIGIT UNIVERSAL PRODUCT CODE, A
PICTURE OF THE PRODUCT LABEL, A PICTURE OF THE PRODUCT TO BE LISTED ON
THE REGISTRY, THE MANUFACTURER CONTACT INFORMATION, AND ANY OTHER INFOR-
MATION AS PRESCRIBED BY THE COMMISSIONER, SHALL BE INCLUDED WITH THE
APPLICATION.
(D) A MANUFACTURER SHALL NOTIFY THE COMMISSIONER WITHIN THIRTY DAYS OF
ANY MATERIAL CHANGE TO THE INFORMATION CONTAINED IN ITS APPLICATION,
INCLUDING ANY ORDER OR ACTION BY THE UNITED STATES FOOD AND DRUG ADMIN-
ISTRATION THAT AFFECTS THE ABILITY OF THE VAPOR PRODUCT TO BE INTRODUCED
OR DELIVERED INTO INTERSTATE COMMERCE FOR COMMERCIAL DISTRIBUTION IN THE
UNITED STATES.
(E) ANY VAPOR PRODUCTS THAT CANNOT BE LAWFULLY SOLD OR POSSESSED IN
THIS STATE SHALL NOT BE LISTED ON THE VAPOR PRODUCTS REGISTRY. VAPOR
PRODUCTS DISTRIBUTORS AND VAPOR PRODUCTS DEALERS SHALL NOT PURCHASE OR
SELL ANY VAPOR PRODUCTS THAT ARE NOT LISTED ON THE VAPOR PRODUCTS REGIS-
TRY.
(F) (1) THE COMMISSIONER SHALL PROVIDE A VAPOR PRODUCTS MANUFACTURER
WITH NOTICE AND AN OPPORTUNITY TO CURE DEFICIENCIES BEFORE REMOVING A
VAPOR PRODUCT FROM THE REGISTRY. THE COMMISSIONER MAY REMOVE A VAPOR
PRODUCT FROM THE REGISTRY NO SOONER THAN TEN BUSINESS DAYS AFTER THE
DATE ON WHICH THE COMMISSIONER PROVIDES SUCH NOTICE TO THE MANUFACTURER
BY ELECTRONIC MAIL TO THE ADDRESS PROVIDED ON THE VAPOR PRODUCT MANUFAC-
TURER'S MOST RECENT APPLICATION FOR INCLUSION ON THE VAPOR PRODUCTS
REGISTRY SUBMITTED PURSUANT TO THIS SECTION.
(2) A DETERMINATION BY THE COMMISSIONER TO REFUSE INCLUSION OF OR TO
REMOVE A VAPOR PRODUCT FROM THE REGISTRY SHALL NOT BE SUBJECT TO REVIEW
IN THE DIVISION OF TAX APPEALS, BUT MAY BE REVIEWED PURSUANT TO ARTICLE
SEVENTY-EIGHT OF THE CIVIL PRACTICE LAW AND RULES, BY A PROCEEDING
COMMENCED IN THE COUNTY WHERE THE COMMISSIONER HAS THEIR PRINCIPAL
OFFICE.
(G) (1) WHEN A VAPOR PRODUCT IS REMOVED FROM THE REGISTRY PURSUANT TO
THIS SECTION, THE COMMISSIONER SHALL PUBLISH ON THE VAPOR PRODUCTS
REGISTRY WEBSITE THE NAME OF THE VAPOR PRODUCT REMOVED, THE MANUFACTURER
OF SUCH VAPOR PRODUCT, THE DATE OF THE REMOVAL OF THE VAPOR PRODUCT FROM
SUCH REGISTRY, AND ANY ADDITIONAL INFORMATION THE COMMISSIONER
PRESCRIBES.
(2) EACH VAPOR PRODUCTS DISTRIBUTOR AND VAPOR PRODUCTS DEALER THAT
POSSESSES IN ITS INVENTORY A VAPOR PRODUCT THAT HAS BEEN REMOVED FROM
THE VAPOR PRODUCTS REGISTRY SHALL: (I) BE NOTIFIED OF SUCH REMOVAL BY
THE MANUFACTURER; AND (II) ALLOW THE MANUFACTURER TO RETRIEVE THE VAPOR
PRODUCT FROM ITS INVENTORY NO LATER THAN TEN BUSINESS DAYS AFTER THE
DATE THE VAPOR PRODUCT HAS BEEN REMOVED FROM THE REGISTRY. AFTER TEN
DAYS FOLLOWING REMOVAL OF A VAPOR PRODUCT FROM THE REGISTRY, ANY SUCH
REMOVED VAPOR PRODUCT SHALL BE DEEMED CONTRABAND VAPOR PRODUCTS AND
A. 10009--B 41
SUBJECT TO SEIZURE, FORFEITURE, AND DESTRUCTION PURSUANT TO SECTION
ELEVEN HUNDRED EIGHTY-FIVE OF THIS ARTICLE AND SHALL NOT BE PURCHASED,
SOLD, OR TRANSFERRED IN THIS STATE.
§ 8. Paragraph 6 of subdivision (a) of section 1801 of the tax law, as
amended by section 4 of part F of chapter 25 of the laws of 2009, is
amended to read as follows:
(6) fails to collect any tax required to be collected under articles
twelve-A, eighteen, twenty, twenty-two, twenty-eight [or],
twenty-eight-A, OR TWENTY-EIGHT-C of this chapter, or pursuant to the
authority of article twenty-nine of this chapter;
§ 9. The tax law is amended by adding a new section 1814-b to read as
follows:
§ 1814-B. VAPOR PRODUCTS TAXES. (A) ANY PERSON WHO, WHILE NOT REGIS-
TERED AS A VAPOR PRODUCTS DISTRIBUTOR PURSUANT TO THE PROVISIONS OF
ARTICLE TWENTY-EIGHT-C OF THIS CHAPTER, SELLS MORE THAN FIFTY UNITS OF
VAPOR PRODUCTS TO A VAPOR PRODUCTS DEALER FOR SALE WITHIN THE STATE,
AFTER DUE NOTICE AND AN OPPORTUNITY FOR A HEARING, LIABLE FOR A CIVIL
PENALTY OF UP TO TEN THOUSAND DOLLARS FOR A FIRST VIOLATION AND UP
TO TWENTY-FIVE THOUSAND DOLLARS FOR A SECOND OR SUBSEQUENT VIOLATION
WITHIN THREE YEARS FOLLOWING A PRIOR FINDING.
(B) ANY PERSON WHO, WHILE NOT REGISTERED AS A VAPOR PRODUCTS DEALER
PURSUANT TO THE PROVISIONS OF ARTICLE TWENTY-EIGHT-C OF THIS CHAPTER,
PURCHASES OR POSSESSES WITH THE INTENT TO SELL WITHIN THIS STATE, MORE
THAN FIFTY UNITS OF VAPOR PRODUCTS SHALL BE, AFTER DUE NOTICE AND AN
OPPORTUNITY FOR A HEARING, LIABLE FOR A CIVIL PENALTY OF UP TO TEN THOU-
SAND DOLLARS FOR A FIRST VIOLATION AND UP TO TWENTY-FIVE THOUSAND
DOLLARS FOR A SECOND OR SUBSEQUENT VIOLATION WITHIN THREE YEARS FOLLOW-
ING A PRIOR FINDING.
§ 10. Subdivision 3 of section 1399-ff of the public health law, as
amended by chapter 405 of the laws of 2000, is amended to read as
follows:
3. The enforcement officer shall promptly notify the commissioner of
taxation and finance and the director of the division of the lottery of
any determination, made after a hearing AND ANY APPEALS THEREFROM HAVE
BEEN CONCLUDED, that a violation of this article has occurred together
with a direction to such commissioner and director with respect to any
action to be taken concerning registration under [section] SECTIONS four
hundred eighty-a AND ELEVEN HUNDRED EIGHTY-THREE of the tax law and
licensing under section sixteen hundred seven of the tax law.
§ 11. Notwithstanding any other provision of law to the contrary, the
vapor products distributor tax due on vapor products that were first
imported or manufactured and are currently possessed in New York state
as of 11:59 pm eastern standard time on August 31, 2026, by any person
in possession for sale shall be subject to tax pursuant to subdivision
(a) of section 1181 of the tax law, as amended by section three of this
act, and shall be paid on or before September 20, 2026, in the form and
manner prescribed by the commissioner of taxation and finance. It shall
be presumed that the vapor products distributor tax imposed by article
28-C of the tax law has not been paid and is owing on all inventory in
the possession and control of a vapor products dealer.
§ 12. This act shall take effect immediately; provided, however, that
sections three, six, eight and nine of this act shall take effect
September 1, 2026.
PART M
A. 10009--B 42
Section 1. The opening paragraph of subparagraph (B) of paragraph 2 of
subdivision (b) of section 1402 of the tax law, as amended by section 1
of part U of chapter 59 of the laws of 2023, is amended to read as
follows:
For purposes of this subdivision, the phrase "real estate investment
trust transfer" shall mean any conveyance of real property or an inter-
est therein to a REIT, or to a partnership or corporation in which a
REIT owns a controlling interest immediately following the conveyance,
which conveyance (I) occurs in connection with the initial formation of
the REIT, provided that the conditions set forth in clauses (i) and (ii)
of this subparagraph are satisfied, or (II) in the case of any real
estate investment trust transfer occurring on or after July thirteenth,
nineteen hundred ninety-six and before September first, two thousand
[twenty-six] TWENTY-NINE, is described in the last sentence of this
subparagraph.
§ 2. Subparagraph 2 of paragraph (xi) of subdivision (b) of section
1201 of the tax law, as amended by section 2 of part U of chapter 59 of
the laws of 2023, is amended to read as follows:
(2) any issuance or transfer of an interest in a REIT, or in a part-
nership or corporation in which a REIT owns a controlling interest imme-
diately following the issuance or transfer, in connection with a trans-
action described in subparagraph one of this paragraph. Notwithstanding
the foregoing, a transaction described in the preceding sentence shall
not constitute a real estate investment trust transfer unless (A) it
occurs in connection with the initial formation of the REIT and the
conditions described in subparagraphs three and four of this paragraph
are satisfied, or (B) in the case of any real estate investment trust
transfer occurring on or after July thirteenth, nineteen hundred nine-
ty-six and before September first, two thousand [twenty-six]
TWENTY-NINE, the transaction is described in subparagraph five of this
paragraph in which case the provisions of such subparagraph shall apply.
§ 3. Subparagraph (B) of paragraph 2 of subdivision e of section
11-2102 of the administrative code of the city of New York, as amended
by section 3 of part U of chapter 59 of the laws of 2023, is amended to
read as follows:
(B) any issuance or transfer of an interest in a REIT, or in a part-
nership or corporation in which a REIT owns a controlling interest imme-
diately following the issuance or transfer in connection with a trans-
action described in subparagraph (A) of this paragraph. Notwithstanding
the foregoing, a transaction described in the preceding sentence shall
not constitute a real estate investment trust transfer unless (i) it
occurs in connection with the initial formation of the REIT and the
conditions described in subparagraphs (C) and (D) of this paragraph are
satisfied, or (ii) in the case of any real estate investment trust
transfer occurring on or after July thirteenth, nineteen hundred nine-
ty-six and before September first, two thousand [twenty-six]
TWENTY-NINE, the transaction is described in subparagraph (E) of this
paragraph in which case the provision of such subparagraph shall apply.
§ 4. This act shall take effect immediately.
PART N
Section 1. Notwithstanding any provision of law to the contrary, the
commissioner of taxation and finance is hereby directed to institute a
reregistration program in accordance with this section, to be completed
by December 31, 2030. Such commissioner shall issue a notice of expira-
A. 10009--B 43
tion to holders of current certificates of authority in an order and at
such times that such commissioner determines necessary for the proper
administration of such reregistration program and to ensure the integri-
ty and qualifications of registrants pursuant to this section. Such
notice of expiration shall be issued to the holder of such certificate
of authority at least 180 days prior to the date of expiration indicated
therein and shall be mailed by certified mail in accordance with the
provisions in subdivision (a) of section 1147 of the tax law. A properly
completed certificate of registration for a new certificate of authority
must be filed with such commissioner at least 90 days prior to the date
of expiration of the current certificate of authority. The commissioner,
within 30 days of receipt of a certificate of registration for a new
certificate of authority pursuant to this section, shall either: issue,
without charge, to each registrant a certificate of authority empowering
such person to collect sales tax for a specified term of no less than
three years, and a duplicate thereof for each additional place of busi-
ness of such person; or, shall propose to refuse to issue a certificate
of authority for any of the circumstances described in subparagraph (B)
of paragraph 4 of subdivision (a) of section 1134 of the tax law. A
person who has received a notice of proposed refusal pursuant to this
section may seek review of such determination in accordance with para-
graph (h) of subdivision 3-a of section 170 and subdivision 2 of section
2008 of the tax law; provided, however, the division of tax appeals must
schedule an expedited hearing within 30 days of receipt of a petition by
a person who has received a notice of proposed refusal pursuant to this
section.
§ 2. (a) Notwithstanding any provision of law to the contrary, the
commissioner of taxation and finance shall administer a sales and use
tax penalty and interest discount program for all eligible taxpayers
with eligible tax liabilities as described in this section.
(b) For purposes of this sales and use tax penalty and interest
discount program, an eligible taxpayer is any person who is a holder of
a current certificate of authority subject to the reregistration program
authorized by section one of this act who has an eligible tax liability,
and who meets the conditions of this section. A person convicted of a
crime under the tax law, or a person convicted under the penal law who
is subject to a court order to pay a tax liability as result of such
conviction, is not eligible to participate in this program.
(c) For purposes of this section, an eligible tax liability is a
liability for sales and use taxes imposed by article 28 of the tax law
or pursuant to the authority of article 29 of such law, including any
interest or penalty thereon, that is fixed and final on or before
September 1, 2026, such that the taxpayer no longer has any right to an
administrative or judicial review. An eligible tax liability shall not
include any penalty imposed by paragraphs 2 or 5 of subdivision (a) of
section 1145 of the tax law, or subdivisions (i) or (j) of such section
1145, as added by section 15 of subpart J of part V-1 of chapter 57 of
the laws of 2009. An eligible tax liability shall not include any
assessment that was reduced by a written agreement with the commission-
er, a liability that was compromised pursuant to subdivision eigh-
teenth-a of section 171 of the tax law, or a liability reduced pursuant
to subdivision 3 of section 1700 of the tax law.
(d) The discounted amount due under the sales and use tax penalty and
interest discount program for an eligible taxpayer with an eligible tax
liability shall be the sales or use tax liability plus fifty percent of
the interest accrued thereon, through December 31, 2026.
A. 10009--B 44
(e) The commissioner of taxation and finance shall identify the eligi-
ble taxpayers with eligible tax liabilities for purposes of this
section, shall compute the discounted amount due on such eligible tax
liabilities, and shall notify eligible taxpayers of such discounted
amount due. The discount authorized by this section shall not be granted
to any eligible taxpayer for any eligible tax liability unless the
eligible taxpayer pays the discounted amount due in full on or before
December 31, 2026. Payment pursuant to this program shall be made by
eligible taxpayers with eligible tax liabilities in a form and manner as
prescribed by the commissioner of taxation and finance.
(f) No refund will be granted or subsequent credit allowed with
respect to any penalty or interest paid with respect to an eligible tax
liability prior to the time the eligible taxpayer participates in the
sales and use tax penalty and interest discount program.
(g) No refund will be granted or subsequent credit allowed with
respect to any amount paid under the sales and use tax penalty and
interest discount program.
(h) If an eligible taxpayer has entered into an installment payment
agreement that applies to an eligible tax liability, the taxpayer may
participate in the sales and use tax penalty and interest discount
program with respect to that liability if the taxpayer pays the
discounted amount due under such program in full by December 31, 2026.
§ 3. This act shall take effect immediately.
PART O
Section 1. Section 1115 of the tax law is amended by adding a new
subdivision (mm) to read as follows:
(MM) THE FOLLOWING SHALL BE EXEMPT FROM TAX UNDER THIS ARTICLE: (1)
RECEIPTS FROM THE RETAIL SALE OF ELECTRICITY BY MEANS OF A COMMERCIAL
ELECTRIC VEHICLE CHARGING STATION. FOR PURPOSES OF THIS SUBDIVISION, A
"COMMERCIAL ELECTRIC VEHICLE CHARGING STATION" SHALL MEAN A DEVICE THAT
SUPPLIES ELECTRICITY TO CHARGE THE BATTERY OF AN ELECTRIC VEHICLE AND
THAT ACCEPTS PAYMENT FOR SUCH ELECTRICITY AT THE TIME SUCH CHARGING
TAKES PLACE.
(2) THE PURCHASE OF ELECTRICITY FOR SALE BY MEANS OF A COMMERCIAL
ELECTRIC VEHICLE CHARGING STATION SHALL BE DEEMED A RETAIL SALE SUBJECT
TO TAX UNDER SUBDIVISION (B) OF SECTION ELEVEN HUNDRED FIVE OF THIS
ARTICLE.
§ 2. This act shall take effect on the first day of a sales tax quar-
terly period next commencing at least 90 days after this act shall have
become a law.
PART P
Section 1. Subparagraph (B) of paragraph 1 of subdivision (a) of
section 1115 of the tax law, as amended by section 1 of part AA of chap-
ter 59 of the laws of 2025, is amended to read as follows:
(B) Until May thirty-first, two thousand [twenty-six] TWENTY-NINE, the
food and drink excluded from the exemption provided by clauses (i), (ii)
and (iii) of subparagraph (A) of this paragraph, and bottled water,
shall be exempt under this subparagraph: (i) when sold for one dollar
and fifty cents or less through any vending machine that accepts coin or
currency only; or (ii) when sold for two dollars or less through any
vending machine that accepts any form of payment other than coin or
currency, whether or not it also accepts coin or currency.
A. 10009--B 45
§ 2. This act shall take effect immediately.
PART Q
Section 1. Section 2 of part PP of chapter 58 of the laws of 2024
amending the tax law relating to establishing a sales tax exemption for
residential energy storage, is amended to read as follows:
§ 2. This act shall take effect June 1, 2024 and shall expire and be
deemed repealed June 1, [2026] 2028.
§ 2. This act shall take effect immediately.
PART R
Section 1. Subdivision (a) of section 308 of the tax law, as amended
by chapter 2 of the laws of 1995, is amended to read as follows:
(a) General.--Every petroleum business subject to tax under this arti-
cle shall monthly, on or before the twentieth day following the close of
its taxable month, file a return which shall state (i) the number of
gallons of motor fuel imported or caused to be imported into this state
for use, distribution, storage or sale in the state or produced,
refined, manufactured or compounded in the state during the preceding
calendar month, (ii) the number of gallons of diesel motor fuel sold or
used or, with respect to gallonage which prior thereto has not been
included in the measure of the tax imposed by this article, delivered by
the petroleum business to a filling station or into the fuel tank
connecting with the engine of a motor vehicle for use in the operation
thereof during the preceding calendar month, (iii) the number of gallons
of, and the resultant product produced, manufactured or blended, using
diesel motor fuel as a component of such resultant product and the sales
of such resultant product, and (iv) the number of gallons of residual
petroleum product sold or used in this state and the sales of such resi-
dual petroleum product, for the period covered by such return. A resi-
dual petroleum business shall include in its reports the number of
gallons of residual petroleum product imported into the state or
purchased in this state, the number of gallons of diesel motor fuel
purchased in this state and the number of gallons of, and the resultant
product produced, manufactured or blended by such petroleum business,
using diesel motor fuel as a component of such resultant product. The
commissioner of taxation and finance may permit the filing of a return
on a quarterly basis in the case of a petroleum business which only
makes sales of diesel motor fuel solely for residential heating purposes
and which is registered under article twelve-A of this chapter as a
diesel motor fuel distributor under a limited registration applicable
only to the importation, sale and distribution of diesel motor fuel for
the purposes described in subparagraph (i) of paragraph (b) of subdivi-
sion three of section two hundred eighty-two-a of this chapter or in the
case of a petroleum business registered as a "distributor of kero-jet
fuel only" pursuant to the provisions of subdivision two of section two
hundred eighty-two-a of this chapter. In the case of such returns
permitted to be filed on a quarterly basis, the adjustments to the rates
of tax then in effect, as provided for in sections three hundred one-a
and three hundred one-e of this article, which take effect on the first
day of January of each year shall, with respect to such quarterly
return, take effect on the first day of the next succeeding March.
Returns shall be filed with the commissioner [in] ON a form prescribed
by the commissioner, setting forth such other information as the commis-
A. 10009--B 46
sioner may prescribe. Every petroleum business shall also transmit such
other returns and such facts and information as the commissioner may
require in the administration of this article. Every petroleum business
which is a corporation subject to tax under this article and which ceas-
es to exercise its franchise or to be subject to the tax imposed by this
article shall transmit to the commissioner a return on the date of such
cessation, or at such other time as the commissioner may require, cover-
ing each month or period for which no return was theretofore filed. The
commissioner may, if the commissioner deems it necessary in order to
insure the payment of the tax imposed by this article, require returns
to be made at such times and covering such periods as the commissioner
may deem necessary. Notwithstanding the foregoing provisions of this
subdivision, the commissioner may require any corporation or unincorpo-
rated business [which] THAT engages in transactions involving petroleum
or similar products, including aviation fuels, to file a monthly return,
which shall contain [any data specified by him] SUCH INFORMATION AS THE
COMMISSIONER PRESCRIBES, regardless of whether such corporation or unin-
corporated business is subject to tax under this article. NOTWITHSTAND-
ING THE PROVISIONS OF THIS SUBDIVISION, EVERY PETROLEUM BUSINESS THAT
OPERATES A "COMMERCIAL VESSEL", AS DEFINED IN SUBDIVISION (B) OF SECTION
ELEVEN HUNDRED ONE OF THIS CHAPTER, SHALL ANNUALLY FILE THE RETURNS
REQUIRED UNDER THIS SECTION, ON A FORM AND CONTAINING SUCH INFORMATION
AS THE COMMISSIONER PRESCRIBES. SUCH "COMMERCIAL VESSEL" RETURNS SHALL
BE FILED ANNUALLY ON OR BEFORE MARCH TWENTIETH AND SHALL COVER THE FOUR
SALES TAX QUARTERLY PERIODS DESCRIBED IN SUBDIVISION (B) OF SECTION
ELEVEN HUNDRED THIRTY-SIX OF THIS CHAPTER IMMEDIATELY PRECEDING SUCH
DATE.
§ 2. This act shall take effect on the first day of the month next
commencing at least ninety days after this act shall have become a law;
provided, however, that a petroleum business that is required to file an
annual return pursuant to section one of this act shall be required to
file monthly returns for periods ending on or before such effective
date; and provided further, however, that such petroleum business shall
file an annual return for the remainder of the annual period of March 1,
2026 through February 28, 2027, on or before March 20, 2027, and shall
be required to file annual returns thereafter.
PART S
Section 1. Section 19 of part W-1 of chapter 109 of the laws of 2006
amending the tax law and other laws relating to providing exemptions,
reimbursements and credits from various taxes for certain alternative
fuels, as amended by section 1 of part EE of chapter 59 of the laws of
2021, is amended to read as follows:
§ 19. This act shall take effect immediately; provided, however, that
sections one through thirteen of this act shall take effect September 1,
2006 and shall be deemed repealed on September 1, [2026] 2031 and such
repeal shall apply in accordance with the applicable transitional
provisions of sections 1106 and 1217 of the tax law, and shall apply to
sales made, fuel compounded or manufactured, and uses occurring on or
after such date, and with respect to sections seven through eleven of
this act, in accordance with applicable transitional provisions of
sections 1106 and 1217 of the tax law; provided, however, that the
commissioner of taxation and finance shall be authorized on and after
the date this act shall have become a law to adopt and amend any rules
or regulations and to take any steps necessary to implement the
A. 10009--B 47
provisions of this act; provided further that sections fourteen through
sixteen of this act shall take effect immediately and shall apply to
taxable years beginning on or after January 1, 2006.
§ 2. This act shall take effect immediately.
PART T
Section 1. Paragraph (a-2) of subdivision 6 of section 425 of the real
property tax law, as amended by section 1 of subpart A of part Z of
chapter 59 of the laws of 2022, is amended to read as follows:
(a-2) Notwithstanding any provision of law to the contrary, [where an
application for the "enhanced" STAR exemption authorized by subdivision
four of this section has not been filed on or before the taxable status
date, and the owner believes that good cause existed for the failure to
file the application by that date,] WHEN A PROPERTY OWNER OF A PROPERTY
WITH A BASIC STAR EXEMPTION BELIEVES THEY HAVE BECOME ELIGIBLE FOR THE
ENHANCED STAR EXEMPTION BUT THEIR BASIC STAR EXEMPTION HAS NOT BEEN
CHANGED TO AN ENHANCED STAR EXEMPTION PURSUANT TO THE PROVISIONS OF
PARAGRAPH (B) OF SUBDIVISION FOUR-B OF THIS SECTION, the owner may, no
later than the last day for paying school taxes without incurring inter-
est or penalty, submit a [written] request to the commissioner asking
[him or her to extend the filing deadline and] THE COMMISSIONER TO grant
the exemption. Such request shall BE IN A FORM PRESCRIBED BY THE COMMIS-
SIONER AND SHALL contain an explanation of why the [deadline was missed,
and shall be accompanied by an application, reflecting the facts and
circumstances as they existed on the taxable status date] PROPERTY OWNER
BELIEVES THEY HAVE BECOME ELIGIBLE FOR THE ENHANCED STAR EXEMPTION.
After consulting with the assessor, the commissioner may [extend the
filing deadline and] grant the exemption if the commissioner is satis-
fied that [(i) good cause existed for the failure to file the applica-
tion by the taxable status date, and that (ii)] the applicant is [other-
wise] entitled to the exemption. The commissioner shall mail notice of
[his or her] SUCH determination to such owner and the assessor. If the
determination states that the commissioner has granted the exemption,
the assessor shall thereupon be authorized and directed to correct the
assessment roll accordingly, or, if another person has custody or
control of the assessment roll, to direct that person to make the appro-
priate corrections. Provided, however, that if the assessment roll
cannot be corrected in time for the exemption to appear on the appli-
cant's school tax bill, the commissioner shall be authorized to remit
directly to the applicant the tax savings that the STAR exemption would
have yielded if it had appeared on the applicant's tax bill. The amounts
so payable shall be paid from the account established for the payment of
STAR benefits to late registrants pursuant to subparagraph (iii) of
paragraph (a) of subdivision fourteen of this section.
§ 2. Paragraphs (c) and (d) of subdivision 14 of section 425 of the
real property tax law are REPEALED and a new paragraph (c) is added to
read as follows:
(C) WHEN THE COMMISSIONER DETERMINES THAT A PROPERTY IS INELIGIBLE FOR
A STAR EXEMPTION, NOTICE OF SUCH DETERMINATION AND AN OPPORTUNITY FOR
REVIEW THEREOF SHALL BE PROVIDED IN THE MANNER SET FORTH IN SUBDIVISION
FOUR-B OF THIS SECTION.
§ 3. Subparagraphs (ii) and (iii) of paragraph (b) of subdivision 15
of section 425 of the real property tax law are REPEALED and a new
subparagraph (ii) is added to read as follows:
A. 10009--B 48
(II) WHEN THE COMMISSIONER DETERMINES THAT A PROPERTY IS INELIGIBLE
FOR A STAR EXEMPTION, NOTICE OF SUCH DETERMINATION AND AN OPPORTUNITY
FOR REVIEW THEREOF SHALL BE PROVIDED IN THE MANNER SET FORTH IN SUBDIVI-
SION FOUR-B OF THIS SECTION.
§ 4. Subparagraph (A) of paragraph 1 of subsection (eee) of section
606 of the tax law, as amended by section 8 of part A of chapter 73 of
the laws of 2016, is amended to read as follows:
(A) "Qualified taxpayer" means a resident individual of the state, who
maintained [his or her] THEIR primary residence in this state on [Decem-
ber thirty-first] JULY FIRST of the taxable year, and who was an owner
of that property on that date, provided however:
(i) A taxpayer whose primary residence received a STAR exemption for
the associated fiscal year shall not be considered a qualified taxpayer
for purposes of this subsection.
(ii) An individual may be considered a qualified taxpayer with respect
to no more than one primary residence during any given taxable year.
[(iii) If a resident individual was an owner of the property during
the taxable year but did not own it on December thirty-first of the
taxable year, he or she shall be considered a qualified taxpayer if the
property was his or her primary residence during the taxable year and he
or she paid qualifying taxes on that property while he or she was still
an owner of that property.
(iv) If a resident individual has acquired ownership of property
during a taxable year, such resident individual shall not be considered
a qualified taxpayer for that taxable year to the extent that an advance
payment of the credit for that taxable year has been issued to the prior
owner with respect to the same property, unless such resident individual
can demonstrate that he or she paid qualifying taxes on such property
during the taxable year, and that the prior owner did not.]
§ 5. Subsection (eee) of section 606 of the tax law is amended by
adding a new paragraph 2 to read as follows:
(2) ALLOWANCE OF CREDIT. A QUALIFIED TAXPAYER SHALL BE ALLOWED A CRED-
IT AS PROVIDED IN PARAGRAPH THREE OR FOUR OF THIS SUBSECTION, WHICHEVER
IS APPLICABLE, AGAINST THE TAXES IMPOSED BY THIS ARTICLE REDUCED BY THE
CREDITS PERMITTED BY THIS ARTICLE, PROVIDED THAT THE REQUIREMENTS SET
FORTH IN THE APPLICABLE SUBSECTION ARE SATISFIED. IF THE CREDIT EXCEEDS
THE TAX AS SO REDUCED FOR SUCH YEAR UNDER THIS ARTICLE, THE EXCESS SHALL
BE TREATED AS AN OVERPAYMENT, TO BE CREDITED OR REFUNDED, WITHOUT INTER-
EST. IF A QUALIFIED TAXPAYER IS NOT REQUIRED TO FILE A RETURN PURSUANT
TO SECTION SIX HUNDRED FIFTY-ONE OF THIS ARTICLE, A QUALIFIED TAXPAYER
MAY NEVERTHELESS RECEIVE THE FULL AMOUNT OF THE CREDIT TO BE CREDITED OR
REPAID AS AN OVERPAYMENT, WITHOUT INTEREST THEREON.
§ 6. The opening paragraph of subparagraph (A) of paragraph 4 of
subsection (eee) of section 606 of the tax law, as amended by section 11
of part O of chapter 59 of the laws of 2025, is amended to read as
follows:
Beginning with taxable years after two thousand [twenty-four] TWENTY-
FIVE, an enhanced STAR credit shall be available to a qualified taxpayer
where both of the following conditions are satisfied:
§ 7. Subparagraph (C) of paragraph 13 of subsection (eee) of section
606 of the tax law, as added by section 1 of part TT of chapter 59 of
the laws of 2017, is amended to read as follows:
(C) If the commissioner determines that a taxpayer received a prelimi-
nary advance payment that is above or below the advance payment to which
he or she was entitled under this subsection, the commissioner shall
provide notice to such taxpayer that the next advance payment due to
A. 10009--B 49
such taxpayer under this subsection shall be adjusted to reconcile such
underpayment or overpayment[; provided, however, the commissioner shall
permit a taxpayer to request that such adjustment be made on an
originally filed timely income tax return for the tax year in which such
overpayment or underpayment occurred, provided such return is filed on
or before the due date for such return, determined without regard to
extensions].
§ 8. This act shall take effect immediately; provided, however, that
section six of this act shall be deemed to have been in full force and
effect on and after January 1, 2026.
PART U
Section 1. Section 4 of chapter 475 of the laws of 2013 amending the
real property tax law relating to assessment ceilings for local public
utility mass real property, as amended by section 1 of part Y of chapter
59 of the laws of 2022, is amended to read as follows:
§ 4. This act shall take effect on the first of January of the second
calendar year commencing after this act shall have become a law and
shall apply to assessment rolls with taxable status dates on or after
such date; provided, however, that this act shall expire and be deemed
repealed [twelve] SIXTEEN years after such effective date; and provided,
further, that no assessment of local public utility mass real property
appearing on the municipal assessment roll with a taxable status date
occurring in the first calendar year after this act shall have become a
law shall be less than ninety percent or more than one hundred ten
percent of the assessment of the same property on the date this act
shall have become a law.
§ 2. This act shall take effect immediately.
PART V
Intentionally Omitted
PART W
Section 1. Subdivisions 2, 4 and 5 of section 136 of the racing,
pari-mutuel wagering and breeding law, as added by section 1 of subpart
A of part FF of chapter 59 of the laws of 2025, are amended to read as
follows:
2. Beginning with state fiscal year two thousand twenty-six, the
aggregate amount of the pari-mutuel wagering tax paid by a harness track
pursuant to [paragraph (b) of] subdivision one of this section in a
state fiscal year shall not exceed the pari-mutuel wagering tax attrib-
utable to live racing handle paid by such harness track in state fiscal
year two thousand twenty-four.
4. Breaks[, as defined in sections two hundred thirty-six, two hundred
thirty-eight, three hundred eighteen, and four hundred eighteen of this
chapter] are not permitted, unless required by another jurisdiction
pursuant to section nine hundred five of this chapter. All distributions
to the holders of winning tickets shall be calculated to the nearest
penny.
5. Notwithstanding subdivision four of this section, a racetrack may
round to the nearest nickel for bets made at the facility[, however the]
ONLY IF SUCH breaks [must be] ARE directed to the retired and rescued
A. 10009--B 50
thoroughbred horse aftercare fund pursuant to section two hundred nine-n
of the tax law if the bet was made on a thoroughbred race, and to the
retired and rescued standardbred horse aftercare fund pursuant to
section two hundred nine-o of the tax law if the bet was made on a
[standardbred] HARNESS race.
§ 2. Section 236 of the racing, pari-mutuel wagering and breeding law,
as amended by chapter 18 of the laws of 2008, subdivisions 1, 2, and 3
as amended by chapter 243 of the laws of 2020, is amended to read as
follows:
§ 236. Disposition of pari-mutuel pools; percentage payable to state
as a tax; authority of counties or certain cities to impose a tax. 1.
Every corporation authorized under this chapter to conduct pari-mutuel
betting at a race meeting on races run thereat, except as provided in
section two hundred thirty-eight of this article with respect to the
franchised corporation, shall distribute all sums deposited in any pari-
mutuel pool to the holders of winning tickets therein, providing such
tickets be presented for payment before April first of the year follow-
ing the year of their purchase, less an amount that shall be established
and retained by such racing corporation of between fourteen to twenty
percent of the total deposits in pools resulting from regular on-track
bets and less sixteen to twenty-two percent of the total deposits in
pools resulting from multiple on-track bets and less twenty to thirty
percent of the total deposits in pools resulting from exotic on-track
bets and less twenty to thirty-six percent of the total pools resulting
from super exotic on-track bets[, plus the breaks]. The retention rate
to be established is subject to the prior approval of the commission.
Such rate may not be changed more than once per calendar quarter to be
effective on the first day of the calendar quarter. "Exotic bets" and
"multiple bets" shall have the meanings set forth in section five
hundred nineteen of this chapter [and breaks are hereby defined as the
odd cents over any multiple of five for payoffs greater than one dollar
five cents but less than five dollars, over any multiple of ten for
payoffs greater than five dollars but less than twenty-five dollars,
over any multiple of twenty-five for payoffs greater than twenty-five
dollars but less than two hundred fifty dollars, or over any multiple of
fifty for payoffs over two hundred fifty dollars]. "Super exotic bets"
shall have the meaning set forth in section three hundred one of this
chapter. Of the amount so retained there shall be paid by such corpo-
ration to the department of taxation and finance as a reasonable tax by
the state for the privilege of conducting pari-mutuel betting on the
races run at the race meeting held by such corporation, which tax is
hereby levied, [the following percentages of the total pool, plus
fifty-five percent of the breaks; the applicable rates for regular and
multiple bets shall be one and one-half percent; the applicable rates
for exotic bets shall be six and three-quarter percent and the applica-
ble rate for super exotic bets shall be seven and three-quarter percent.
Effective on and after September first, nineteen hundred ninety-four,
the applicable tax rate shall be one percent of all wagers, provided
that, an amount equal to one-half the difference between the taxation
rate for on-track regular, multiple and exotic bets as of December thir-
ty-first, nineteen hundred ninety-three and the rates on such on-track
wagers as herein provided shall be used exclusively for purses.
Provided, however, that] IN THE APPLICABLE PERCENTAGE SET FORTH IN
SUBDIVISION ONE OF SECTION ONE HUNDRED THIRTY-SIX OF THIS CHAPTER. ANY
SUCH RACING CORPORATION SHALL, for any twelve-month period beginning on
April first in nineteen hundred ninety and any year thereafter, [each of
A. 10009--B 51
the applicable rates set forth above shall be increased by one-quarter
of one percent on all on-track bets of any such racing corporation that
did not] expend an amount equal to at least one-half of one percent of
its on-track bets during the immediately preceding calendar year for
enhancements consisting of capital improvements as defined by section
two hundred thirty-seven of this article, repairs to its physical plant,
structures, and equipment used in its racing or wagering operations [as
certified by the commission to the commissioner of taxation and finance
no later than eighty days after the close of such calendar year,] and
five special events at each track in each calendar year, not otherwise
conducted in the ordinary course of business, the purpose of which shall
be to encourage, attract and promote track attendance and encourage new
and continued patronage, which events shall be subject to the prior
approval of the commission for purposes of this subdivision. In the
determination of the amounts expended for such enhancements, the commis-
sion may consider the immediately preceding twelve-month calendar period
or the average of the two immediately preceding twelve-month calendar
periods. Provided further, however, that of the portion of the increased
amounts retained by such corporation above those amounts retained in
nineteen hundred eighty-four, an amount of such increase shall be
distributed to purses in the same proportion as commissions and purses
were distributed during nineteen hundred eighty-four as certified by the
commission. [Such corporation in the second zone shall receive a credit
against the daily tax imposed by this subdivision in an amount equal to
four-tenths of one percent of total daily pools resulting from the
simulcast of such corporation's races to licensed facilities operated by
regional off-track betting corporations in accordance with section one
thousand eight of this chapter, provided however, that sixty percent of
the amount of such credit shall be used exclusively to increase purses
for overnight races conducted by such corporation; and, provided
further, that in no event shall such total daily credit exceed four-
tenths of one percent of the total daily pool of such corporation.]
Such corporation shall pay to the New York state thoroughbred breeding
and development fund one-half of one percent of the total daily on-track
pari-mutuel pools from regular, multiple and exotic bets, and three
percent of super exotic bets. [The corporation shall receive credit as a
reduction of the tax by the state for the privilege of conducting pari-
mutuel betting for the amounts, except amounts paid from super exotic
betting pools, paid to the New York state thoroughbred breeding and
development fund after January first, nineteen hundred seventy-eight.]
Such corporation shall distribute to purses an amount equal to fifty
percent of any compensation it receives from simulcasting or from wager-
ing conducted outside the United States. Such corporation shall pay to
the commission as a regulatory fee, which fee is hereby levied, six-
tenths of one percent of the total daily on-track pari-mutuel pools of
such corporation.
2. The balance of the retained percentage of such pool [and of the
breaks] shall be held by such corporation for its own use and purposes,
except that in addition to any payments to purses provided for in subdi-
vision one of this section, an amount equal to two and one-half percent
of the total pools resulting from on-track regular bets and exotic bets
and an amount equal to three and one-half percent of the total pools
resulting from on-track multiple bets and an amount equal to twelve
percent of on-track super exotic bets shall be used exclusively for the
purpose of increasing purses (including stakes, premiums and prizes)
awarded to horses in races conducted by such corporation. Such two and
A. 10009--B 52
one-half percent and three and one-half percent shall be in addition to
(i) four and one-half percent of such total pools resulting from regular
and multiple wagers and five and one-half percent of such total pools
resulting from exotic wagers, or (ii) the percentage of such total pools
used for purses (including stakes, premiums and prizes) during the year
nineteen hundred eighty-two, whichever is larger. Such percentage of the
total pools mentioned in this subdivision shall be used for purses
(including stakes, premiums and prizes) in races hereafter conducted by
such corporation, and any portion not so used during any year shall be
so used during the following year[, failing which such portion shall be
payable to the commissioner of taxation and finance as additional tax].
The commission shall report annually, on or before July first, to the
director of the budget, the chair of the senate finance committee and
the chair of the assembly ways and means committee the extent to which
such corporation used and retained percentages [and breakage] for oper-
ations, maintenance, capital improvements, advertising and promotion,
administration and general overhead and evaluate the effectiveness and
make recommendations with respect to the application of the [reduced]
rates of taxation [as provided for in subdivision one of this section in
accomplishing the objectives stated therein]. Such report shall also
specify the amount of such retained percentages [and breakage] used for
investments not directly related to racing activities and such amounts
used to declare dividends or other profit distributions, additions to
capital stock, its sale and transfer and additions to retained earnings.
Such reports shall also include an analysis of any such agreements or
proposals to conduct or otherwise expand wagers authorized under article
ten of this chapter and present its conclusions with respect to the
conduct of such wagering, the nature of such proposals and agreements,
and recommendations to ensure the future maintenance of the intent of
this article.
3. [Tax rates in event of a failure to maintain] MAINTENANCE OF pari-
mutuel racing activity. [a. Notwithstanding any other provision of this
section to the contrary, for] FOR any calendar year commencing on or
after January first, nineteen hundred eighty-nine, [in which] a racing
corporation in zone two [does] SHALL not conduct [a minimum number of]
FEWER pari-mutuel programs and pari-mutuel races at its facilities
[equal to at least] THAN ninety percent of the programs and races so
conducted during nineteen hundred eighty-five or during nineteen hundred
eighty-six, whichever is less, [in lieu of the tax rates set forth in
subdivision one of this section the applicable pari-mutuel tax rates for
such corporation with respect to on-track pari-mutuel betting pools
during such year shall be increased by one percent of regular, multiple
and exotic betting pools. Notwithstanding the foregoing, no increase
shall be proposed unless such corporation has been afforded notice and
opportunity to be heard. The commission shall promulgate rules and regu-
lations to implement the provisions relating to notice and hearing.
b. The provisions of this subdivision shall not apply to a corporation
for any calendar year for which the commission certifies to the commis-
sioner of taxation and finance:
(i) by December fifteenth of the year immediately preceding such year,
that such corporation has been assigned for such year, from the programs
and races it requested, at least the minimum number of programs and
races prescribed in paragraph a of this subdivision, or, if fewer than
such number were assigned for such year, that the assignment of such
lesser number was for] UNLESS SUCH CORPORATION DEMONSTRATES TO THE
SATISFACTION OF THE COMMISSION good cause due to factors beyond the
A. 10009--B 53
control of such corporation or because the commission [found] FINDS that
it would be uneconomical or impractical for such corporation to be
assigned OR CONDUCT the prescribed number[; and
(ii) by January thirty-first of the year immediately subsequent to
such year, that such corporation did conduct such number of programs and
races as were certified pursuant to subparagraph (i) of this paragraph,
or if it failed to conduct such number that such failure was for good
cause due to factors beyond its control or because the commission found
it uneconomical or impractical for such corporation to conduct such a
number.
c. For any calendar year for which the commission does not certify
pursuant to the provisions of subparagraph (i) of paragraph b of this
subdivision with respect to a corporation, the tax imposed by this
section shall be computed by substituting the provisions of paragraph a
of this subdivision for the provisions of subdivision one of this
section and shall pay the tax so computed to the commissioner of taxa-
tion and finance. In such computation and payment, all other provisions
of this section shall apply as if the provisions of this paragraph and
of paragraph a of this subdivision had been incorporated in whole in
subdivision one of this section.
d. For any calendar year for which the commission does not certify
pursuant to the provisions of subparagraph (ii) of paragraph b of this
subdivision with respect to a corporation, the tax required to be paid
hereunder for such year shall be equal to the difference between the tax
imposed pursuant to paragraph a of this subdivision and the tax imposed
pursuant to the provisions of subdivision one of this section less one-
half of such difference in recognition of purses that were required to
be paid, plus an additional amount equal to ten percent of such tax in
the event of a willful failure to comply with the provisions of subpara-
graph (ii) of paragraph b of this subdivision, and such corporation
shall pay the tax so computed to the commissioner of taxation and
finance on or before March fifteenth of the following year. Notwith-
standing the provisions of this subdivision, in the event that upon
appeal from the determination of the commission that the certification
provided in paragraph b of this subdivision will not be made, it is
finally determined that the commission erred in failing to so certify
and that any moneys received by the commissioner of taxation and finance
under paragraph c of this subdivision were paid in error, the same shall
be refunded at the rate of interest of six percent per annum. Payment of
such balance of tax due, or the anticipation of such payment, shall not
affect the determination of purses in the year in which such tax arises
or in the year in which such payment is made nor shall such payment in
any other manner be considered in any statutory or contractual calcu-
lation of purse obligations.
e. Written notice of the certification of the commission pursuant to
the provisions of paragraph b of this subdivision shall be given by the
commission to the applicable corporation by the dates therein specified.
In like manner, written notice that such certification will not be made
shall be given by the commission to the commissioner of taxation and
finance and the applicable corporation by such dates].
4. The payment of the state tax imposed by this section shall be made
to the commissioner of taxation and finance on the last business day of
each month and shall cover taxes due for the period from the sixteenth
day of the preceding month through the fifteenth day of the current
month provided, however, that such payments required to be made on March
thirty-first shall include all taxes due and accruing through the last
A. 10009--B 54
full week of racing in March of the current year or as otherwise deter-
mined by the commissioner of taxation and finance, and shall be accompa-
nied by a report under oath, showing the total of all such contrib-
utions, together with such other information as the commissioner of
taxation and finance may require. A penalty of five [per centum] PERCENT
and interest at the rate of one [per centum] PERCENT per month from the
date the report is required to be filed to the date of payment of the
tax shall be payable in case any tax imposed by this section is not paid
when due. If the commissioner of taxation and finance determines that
any moneys received under this subdivision were paid in error, the
commissioner of taxation and finance may cause the same to be refunded
without interest out of any moneys collected thereunder, provided an
application therefor is filed with the commissioner of taxation and
finance within one year from the time the erroneous payment was made.
Such taxes, interest and penalties when collected, after the deduction
of refunds of taxes erroneously paid, shall be paid by the commissioner
of taxation and finance into the general fund of the state treasury.
5. No county, city, town, village or other political subdivision of
the state may impose, levy or collect a tax on admission fees or tickets
of admission, on wagers made by patrons, in the form of purchases of
pari-mutuel tickets or upon such tickets, on pari-mutuel pools, on
breaks, on dividends or payments made to winning bettors, or on that
part of the pari-mutuel pools [or breaks] to be retained by racing
corporations under this section, except as otherwise provided in this
chapter.
§ 3. Section 238 of the racing, pari-mutuel wagering and breeding law,
as amended by chapter 18 of the laws of 2008, subdivision 1 as amended
by chapter 243 of the laws of 2020, paragraph (a) of subdivision 1 as
amended by section 9 of subpart B of part FF of chapter 59 of the laws
of 2025, and paragraph c of subdivision 2 as amended by chapter 367 of
the laws of 2021, is amended to read as follows:
§ 238. Disposition of pari-mutuel pools of the franchised corporation;
percentage payable to state as a tax; authority of counties or certain
cities to impose a tax. 1. (a) The franchised corporation authorized
under this chapter to conduct pari-mutuel betting at a race meeting or
races run thereat shall distribute all sums deposited in any pari-mutuel
pool to the holders of winning tickets therein, provided such tickets
are presented for payment before April first of the year following the
year of their purchase, less an amount that shall be established and
retained by such franchised corporation of between twelve to seventeen
percent of the total deposits in pools resulting from on-track regular
bets, and fourteen to twenty-one percent of the total deposits in pools
resulting from on-track multiple bets and fifteen to twenty-five percent
of the total deposits in pools resulting from on-track exotic bets and
fifteen to thirty-six percent of the total deposits in pools resulting
from on-track super exotic bets[, plus the breaks]. The retention rate
to be established is subject to the prior approval of the commission.
Such rate may not be changed more than once per calendar quarter to be
effective on the first day of the calendar quarter. "Exotic bets" and
"multiple bets" shall have the meanings set forth in section five
hundred nineteen of this chapter. "Super exotic bets" shall have the
meaning set forth in section three hundred one of this chapter. For
purposes of this section, a "pick six bet" shall mean a single bet or
wager on the outcomes of six races. [The breaks are hereby defined as
the odd cents over any multiple of five for payoffs greater than one
dollar five cents but less than five dollars, over any multiple of ten
A. 10009--B 55
for payoffs greater than five dollars but less than twenty-five dollars,
over any multiple of twenty-five for payoffs greater than twenty-five
dollars but less than two hundred fifty dollars, or over any multiple of
fifty for payoffs over two hundred fifty dollars.] Out of the amount so
retained there shall be paid by such franchised corporation to the
commissioner of taxation and finance, as a reasonable tax by the state
for the privilege of conducting pari-mutuel betting on the races run at
the race meetings held by such franchised corporation, WHICH TAX IS
HEREBY LEVIED, IN the [following percentages of the total pool for regu-
lar and multiple bets five percent of regular bets and four percent of
multiple bets plus twenty percent of the breaks; for exotic wagers seven
and one-half percent plus twenty percent of the breaks, and for super
exotic bets seven and one-half percent plus fifty percent of the breaks.
For the period April first, two thousand one through December thirty-
first, two thousand twenty-six, such tax on all wagers shall be one and
six-tenths percent, plus, in each such period, twenty percent of the
breaks] APPLICABLE PERCENTAGE SET FORTH IN SUBDIVISION ONE OF SECTION
ONE HUNDRED THIRTY-SIX OF THIS CHAPTER. Payment to the New York state
thoroughbred breeding and development fund by such franchised corpo-
ration shall be one-half of one percent of total daily on-track pari-mu-
tuel pools resulting from regular, multiple and exotic bets and three
percent of super exotic bets and for the period April first, two thou-
sand one through December thirty-first, two thousand twenty-six, such
payment shall be seven-tenths of one percent of regular, multiple and
exotic pools.
(b) An amount equal to fifty percent of any compensation received by a
franchised corporation from simulcasting or from wagering conducted
outside the United States or outside New York state and within the
United States shall be distributed to purses, except with respect to
such compensation received from Connecticut which shall be computed as a
percentage of wagering handle in a manner approved by the commission.
(c) An amount equal to fifty percent of any compensation received by
the franchised corporation from simulcasting or from wagering conducted
outside the United States shall be distributed to purses.
(d) (i) [The pari-mutuel tax rate authorized by paragraph (a) of this
subdivision shall be effective so long as a franchised corporation noti-
fies the commission by August fifteenth of each year that such pari-mu-
tuel tax rate is effective of its intent to] THE FRANCHISED CORPORATION
SHALL conduct a race meeting at Aqueduct racetrack during the months of
December, January, February, March and April. For purposes of this para-
graph such race meeting shall consist of not less than ninety-five days
of racing unless otherwise agreed to in writing by the New York
Thoroughbred Breeders Inc., the New York thoroughbred horsemen's associ-
ation (or such other entity as is certified and approved pursuant to
section two hundred twenty-eight of this article) and approved by the
commission. Not later than May first of each year [that such pari-mutuel
tax rate is effective], the commission shall determine whether a race
meeting at Aqueduct racetrack consisted of the number of days as
required by this [paragraph] SUBPARAGRAPH. In determining the number of
race days, cancellation of a race day because of an act of God that the
commission approves or because of weather conditions that are unsafe or
hazardous that the commission approves shall not be construed as a fail-
ure to conduct a race day. Additionally, cancellation of a race day
because of circumstances beyond the control of such franchised corpo-
ration for which the commission gives approval shall not be construed as
a failure to conduct a race day. [If the commission determines that the
A. 10009--B 56
number of days of racing as required by this paragraph have not occurred
then the pari-mutuel tax rate in paragraph (a) of this subdivision shall
revert to the pari-mutuel tax rates in effect prior to January first,
nineteen hundred ninety-five.]
(ii) Such franchised corporation shall pay to the commission as a
regulatory fee, which fee is hereby levied, six-tenths of one percent of
the total daily on-track pari-mutuel pools of such franchised corpo-
ration.
2. a. Subject to the provisions of this section the payment of such
state tax shall be made to the commissioner of taxation and finance on
the last business day of each month and shall cover taxes due for the
period from the sixteenth day of the preceding month through the
fifteenth day of the current month provided, however, that such payments
required to be made on March thirty-first shall include all taxes due
and accruing through the last full week of racing in March of the
current year or as otherwise determined by the commissioner, and shall
be accompanied by a report under oath, showing such information as the
commissioner may require. A penalty of five [per centum] PERCENT and
interest at the rate of one [per centum] PERCENT per month from the date
the report is required to be filed to the date of the payment of the tax
shall be payable in case any tax imposed by this section is not paid
when due. If the commissioner determines that any moneys received by the
commissioner under this section were paid in error, the commissioner may
cause the same to be refunded without interest out of any moneys
collected thereunder, provided an application therefor is filed with the
commissioner within one year from the time the erroneous payment was
made. Such taxes, interest and penalties when collected, after the
deduction of refunds of taxes erroneously paid, shall be paid by the
commissioner into the general fund of the state treasury.
b. The balance of the retained percentage of such pool [and of the
breaks] shall be held by such franchised corporation for its corporate
purposes, except as provided in paragraph c of this subdivision.
c. An amount equal to five and ninety-four hundredths percent of the
total pools resulting from on-track regular bets and an amount equal to
five and ninety-four hundredths percent of the total pools resulting
from on-track multiple and exotic bets, and twelve percent of the total
pools resulting from super exotic bets shall be used exclusively for
purses (including stakes, premiums and prizes) awarded in races
conducted by such franchised corporation. Any portion of such percent
not so used during any year shall be so used during the following year[,
failing which such portion shall be payable to the commissioner as addi-
tional tax. Such additional tax shall be payable on or before April
first in the year following the year in which such portion is not so
used and the provisions of paragraph a of this subdivision shall be
applicable thereto except as to the time of payment].
3. No county, city, town, village or other political subdivision of
the state may impose, levy or collect a tax on admission fees or tickets
of admission, on wagers made by patrons in the form of purchases of
pari-mutuel tickets or upon such tickets, on pari-mutuel pools, on
breaks, on dividends or payments made to winning bettors, or on revenue
retained by the franchised corporation, except as provided in former
article two-B of the general city law, and as otherwise provided in this
chapter.
[4. Notwithstanding any inconsistent provision of this chapter, when-
ever the franchised corporation operates the Breeder's Cup Meet at one
of its racing facilities, such franchised corporation shall not be
A. 10009--B 57
required to pay to the department of taxation and finance pursuant to
this section the pari-mutuel tax on the pari-mutuel pools of such fran-
chised corporation's races during the Breeder's Cup Meet. For the
purposes of this subdivision, the Breeder's Cup Meet shall consist of
three days: the day on which the Breeder's Cup races are conducted, the
day preceding such races and the day subsequent to such races.]
§ 4. Subdivisions 1, 4 and 5 of section 318 of the racing, pari-mutuel
wagering and breeding law, subdivisions 1 and 5 as amended by chapter
243 of the laws of 2020, and subdivision 4 as amended by chapter 261 of
the laws of 1988, are amended to read as follows:
1. Except as otherwise provided by law, every association or corpo-
ration authorized under this article to conduct pari-mutuel betting at a
harness horse race meeting on races run thereat shall distribute all
sums deposited in any pari-mutuel pool to the holders of winning tickets
therein, provided such tickets be presented for payment prior to April
first of the year following the year of their purchase, less an amount
that shall be established and retained by such racing association or
corporation of between fourteen and twenty percent of the total deposits
in pools resulting from regular bets, less sixteen to twenty-two percent
of the total deposits in pools resulting from multiple bets, less twenty
to thirty percent of the total deposits in pools resulting from exotic
bets, and less twenty to thirty-six percent of the total betting depos-
its in pools resulting from super exotic bets[, plus the breaks]. The
retention rate to be established is subject to the prior approval of the
commission. Such rate may not be changed more than once per calendar
quarter to be effective on the first day of the calendar quarter.
"Exotic bets" and "multiple bets" shall have the meanings set forth in
section five hundred nineteen of this chapter[, "super]. "SUPER exotic
bets" shall have the meaning set forth in subdivision four of section
three hundred one of this article [and "the breaks" are hereby defined
as the odd cents over any multiple of ten for regular and multiple bets,
or for exotic bets, over any multiple of fifty, or for super exotic
bets, over any multiple of one hundred calculated on the basis of one
dollar and otherwise payable to a patron, provided however, that effec-
tive after October fifteenth, nineteen hundred ninety-four breaks are
hereby defined as the odd cents over any multiple of five for payoffs
greater than one dollar five cents but less than five dollars, over any
multiple of ten for payoffs greater than five dollars but less than
twenty-five dollars, over any multiple of twenty-five for payoffs great-
er than twenty-five dollars but less than two hundred fifty dollars, or
over any multiple of fifty for payoffs over two hundred fifty dollars].
a. Of the sum so retained from on-track pari-mutuel betting pools,
such association or corporation authorized to operate in Westchester or
Nassau county: (i) shall pay to the commissioner of taxation and finance
as a reasonable tax for the privilege of conducting pari-mutuel betting
at races run at race meetings held by such corporation or association, a
tax, which is hereby levied, [at the rate of one-half of one percent of
all wagers from total daily on-track pools. Such association or corpo-
ration shall receive credit as a reduction of the daily tax by the state
for the privilege of conducting pari-mutuel betting of amounts equal to
four-tenths percent of total daily pools resulting from the simulcast of
such association's or corporation's races to licensed facilities oper-
ated by regional off-track betting corporations in accordance with
section one thousand eight of this chapter; provided, however, that in
no event shall total daily credit exceed four-tenths percent of the
total daily pool of such association or corporation. An amount equal to
A. 10009--B 58
fifty percent of such credit shall be used to increase purses; provided,
however, that] IN THE APPLICABLE PERCENTAGE SET FORTH IN SUBDIVISION ONE
OF SECTION ONE HUNDRED THIRTY-SIX OF THIS CHAPTER AS LIMITED BY SUBDIVI-
SION TWO OF SECTION ONE HUNDRED THIRTY-SIX OF THIS CHAPTER. ANY SUCH
ASSOCIATION OR CORPORATION SHALL, for any twelve-month period beginning
on April first in nineteen hundred ninety and any year thereafter, [each
of the applicable rates set forth above shall be increased by one-half
of one percent on all on-track bets of any such racing association or
corporation that did not] expend an amount equal to at least one-half of
one percent of its on-track bets during the immediately preceding calen-
dar year for enhancements consisting of capital improvements as defined
by section three hundred nineteen of this article, repairs to its phys-
ical plant, structures, and equipment used in its racing or wagering
operations, [as certified by the commission to the commissioner of taxa-
tion and finance no later than eighty days after the close of such
calendar year,] and five special events at each track in each calendar
year, not otherwise conducted in the ordinary course of business, the
purpose of which shall be to encourage, attract and promote track
attendance and encourage new and continued patronage, which events shall
be subject to the approval of the commission for purposes of this subdi-
vision. In the determination of the amounts expended for such enhance-
ments, the commission shall consider the average of the two immediately
preceding twelve-month calendar periods. [Notwithstanding the foregoing
no increase shall be imposed unless such corporation or association has
been afforded notice and opportunity to be heard. The commission shall
promulgate rules and regulations to implement the provisions relating to
notice and hearing.]
(ii) except as otherwise provided in this paragraph an amount equal to
six and eight-tenths percent of the total pool resulting from on-track
regular bets, an amount equal to seven and ninety-five one hundredths
percent of the total pool resulting from on-track multiple bets, an
amount equal to ten and one-half percent of the total pool resulting
from on-track exotic bets, an amount equal to fifteen and one-half
percent of the total daily pool resulting from on-track super exotic
bets shall be used exclusively for purses, of which an amount of not
less than ninety percent shall be used exclusively for purses for over-
night races conducted by such association or corporation. Such amounts
may be reduced upon an application approved by the commission and an
agreement between the licensed harness racing corporation or association
and the representative horsemen's organization as a condition to reduce
the amounts of retained percentages as provided for in this section.
However, of the total amount available for purses, an amount as deter-
mined by contractual obligations between an organization representing at
least fifty-one percent of the owners and trainers using the facilities
of such association or corporation for racing, training or stabling
purposes and the association or corporation, shall be used for the
administrative purposes of said organization and for such welfare and
medical plans for regularly employed backstretch employees principally
employed at the facilities of such corporation or association as
provided by said organization, provided, however, that eligibility for
benefits in such plans shall not be conditioned upon membership in such
organization by any employee or employer thereof, and any denial of
eligibility for benefits in such plans which, upon investigation and
review by the commission, is determined to have resulted from a person,
firm, association, corporation or organization knowingly aiding in or
permitting eligibility for benefits being conditioned upon membership in
A. 10009--B 59
such organization shall subject such organization to the penalties
imposed under sections three hundred ten and three hundred twenty-one of
this article but the ratio between the amounts actually expended for
such welfare and medical plans and the cost actually incurred in admin-
istering such welfare and medical plans for fiscal years of such corpo-
ration or association, on or after July twenty-fourth, nineteen hundred
eighty-one, shall not be less than the ratio between such amounts actu-
ally expended and such costs actually incurred for the fiscal year imme-
diately prior to such date. Such organization shall annually on or
before July first certify to the commission that it represents at least
fifty-one percent of such owners and trainers and provide copies of such
certification to such association or corporation. Any other organization
claiming to represent at least fifty-one percent of such owners and
trainers may file a challenge with the commission within fifteen days of
such original certification. The commission shall examine such claim and
may undertake studies and conduct hearings to determine the validity of
such claim. Within sixty days of receiving such challenge and based
upon the findings of such studies and hearings, the commission shall
render a decision on the validity of such claim and advise such organ-
izations and association or corporation of its determination. Upon
receipt of such original certification by such organization, the associ-
ation or corporation shall make such payments to said organization and,
in the event of a challenge brought to any other organization, such
payments shall continue to be made until such time as the commission
renders its decision on such challenge; and
(iii) the balance of the retained percentage of such pools [and the
balance of the breaks] may be held by such association or corporation
for its own use and purposes except as provided in paragraph c of this
subdivision and in subdivision four of section three hundred one of this
article, provided, however, that the commission shall report annually,
on or before July first, to the director of the budget, the chair of the
senate finance committee and the chair of the assembly ways and means
committee the extent to which such corporations and associations used
such retained percentages [and breakage] for operations, maintenance,
capital improvements, advertising and promotion, administration and
general overhead and evaluate the effectiveness and make recommendations
with respect to the application of the [reduced] rates of taxation as
provided for in subparagraph (i) of this paragraph in accomplishing the
objectives stated therein. Such report shall also specify the amounts of
such retained percentages [and breakage] used for investments not
directly related to racing activities and such amounts used to declare
dividends or other profit distributions, additions to capital stock, its
sale and transfer and additions to retained earnings. Such reports shall
also include an analysis of any such agreements or proposals to conduct
or otherwise expand wagers authorized under article ten of this chapter
and present its conclusions with respect to the conduct of such wager-
ing, the nature of such proposals and agreements, and recommendations to
ensure the future maintenance of the intent of this article and article
ten of this chapter.
b. (i) Of the sums retained by any other licensed harness racing asso-
ciation or corporation other than those described in paragraph a of this
subdivision, SUCH ASSOCIATION OR CORPORATION SHALL PAY TO THE COMMIS-
SIONER OF TAXATION AND FINANCE AS A REASONABLE TAX FOR THE PRIVILEGE OF
CONDUCTING PARI-MUTUEL BETTING AT RACES RUN AT RACE MEETINGS HELD BY
SUCH CORPORATION OR ASSOCIATION, A TAX, WHICH IS HEREBY LEVIED, IN the
applicable [tax rates for regular bets shall be six-tenths of one
A. 10009--B 60
percent; for multiple bets shall be one and one-tenth percent; for exot-
ic bets shall be five and six-tenths percent and for super exotic bets
shall be seven percent, plus fifty percent of the breaks. Effective
September first, nineteen hundred ninety-four, for all licensed harness
racing associations and corporations that have entered into a contract
with their representative horsemen's association on and after such date,
such tax shall be one-half of one percent of all wagers, plus fifty
percent of the breaks.
Provided, however, that] PERCENTAGE SET FORTH IN SUBDIVISION ONE OF
SECTION ONE HUNDRED THIRTY-SIX OF THIS CHAPTER, AS LIMITED BY SUBDIVI-
SION TWO OF SECTION ONE HUNDRED THIRTY-SIX OF THIS CHAPTER. ANY SUCH
RACING ASSOCIATION OR CORPORATION SHALL for any twelve-month period
beginning on April first in nineteen hundred ninety and any year there-
after, [each of the applicable rates set forth above shall be increased
by one-quarter of one percent on all on-track bets of any such racing
association or corporation that did not] expend an amount equal to at
least one-half of one percent of its on-track bets during the immediate-
ly preceding calendar year for enhancements consisting of capital
improvements as defined by section three hundred nineteen of this arti-
cle, repairs to its physical plant, structures, and equipment used in
its racing or wagering operations, [as certified by the commission to
the commissioner of taxation and finance no later than eighty days after
the close of such calendar year, and five special events at each track
in each calendar year,] not otherwise conducted in the ordinary course
of business, the purpose of which shall be to encourage, attract and
promote track attendance and encourage new and continued patronage,
which events shall be subject to the approval of the commission for
purposes of this subdivision. In this regard, expenditures by a county
agricultural society pursuant to section three hundred nineteen of this
article shall be credited to the applicable harness racing association
or corporation for this purpose. In the determination of the amounts
expended for such enhancements, the commission may consider the imme-
diately preceding twelve-month calendar period or the average of the two
immediately preceding twelve-month calendar periods. [Notwithstanding
the foregoing no increase shall be imposed unless such corporation or
association has been afforded a notice and opportunity to be heard. The
commission shall promulgate rules and regulations to implement the
provisions relating to notice and hearing.
Such associations or corporations shall receive credit as a reduction
of the daily tax by the state for the privilege of conducting pari-mutu-
el betting of amounts equal to four-tenths percent of total daily pools
resulting from the simulcast of such association's or corporation's
races to licensed facilities operated by regional off-track betting
corporations in accordance with section one thousand eight of this chap-
ter, provided however, that in no event shall the total daily credit
exceed four-tenths percent of the total daily pool of such association
or corporation which tax is hereby levied and shall be paid to the
commissioner of taxation and finance as a reasonable tax imposed by the
state for the privilege of conducting pari-mutuel betting at races run
at race meetings held by such association or corporation.] The commis-
sion shall report annually, before July first, to the director of the
budget, the chair of the senate finance committee and the chair of the
assembly ways and means committee the extent to which such corporations
and associations used such retained percentages [and breakage] for oper-
ations, maintenance, capital improvements, advertising and promotion,
administration and general overhead and evaluate the effectiveness and
A. 10009--B 61
make recommendations with respect to the application of the [reduced]
rates of taxation as provided for in this subparagraph in accomplishing
the objectives stated therein. Such report shall also specify the
amounts of such retained percentages [and breakage] used for investments
not directly related to racing activities and such amounts used to
declare dividends or other profit distributions, additions to capital
stock, its sale and transfer and additions to retained earnings. Such
reports shall also include an analysis of any such agreements or
proposals to conduct or otherwise expand wagers authorized under article
ten of this chapter and present its conclusions with respect to the
conduct of such wagering, the nature of such proposals and agreements,
and recommendations to ensure the future maintenance of the intent of
this article.
(ii) Of the sums retained by such association or corporation, an
amount equal to one and three-quarters percent of the total pool result-
ing from on-track regular, multiple and exotic bets shall be used exclu-
sively for the purpose of increasing purses awarded in overnight races
conducted by such association or corporation. Such amounts shall be in
addition to purse moneys otherwise provided pursuant to existing
contractual obligations. In this regard an amount equal to twelve
percent of the total bets in super exotic pools shall be used for purses
in lieu of any such contractual obligations that might otherwise apply
to purses to be awarded on super exotic bets. Any portion of such amount
not so used during any year shall be so used during the following year[,
failing which such portion shall be payable to the commissioner of taxa-
tion and finance as additional tax]. In addition to the amounts
required in this paragraph, fifty percent of all additional sums
retained, as a result of tax reductions provided in this section after
September first, nineteen hundred ninety-four to qualified licensed
harness racing associations, shall be used exclusively for purposes of
increasing purses awarded in overnight races conducted by such associ-
ation or corporation, provided that such association or corporation has
entered into a written agreement with its representative horsemen's
organization on and after September first, nineteen hundred ninety-four.
Notwithstanding anything contained herein to the contrary, in a harness
special betting district the amount to be used for purses or the method-
ology for calculating the amount to be used for purses may be specified
in a written contract between a harness racing association or corpo-
ration and its representative horsemen's association. The balance of the
retained percentage of such pool may be held by such corporation or
association for its own use and purposes.
(iii) [Of the amount of the breaks from on-track regular, multiple,
exotic and super exotic bets such association or corporation shall pay
fifty percent to the commissioner of taxation and finance. The balance
of such breaks may be held by such association or corporation for its
own use and purposes.
(iv)] The commission shall as a condition of racing require an associ-
ation authorized to operate in areas other than Westchester or Nassau
county to withhold one percent of all purses and to pay such sum to the
horsemen's organization representing the owners and trainers using the
facilities of such association [which] THAT had a contract with the
association governing the conditions of racing on January first, nine-
teen hundred ninety-two, as determined by the commission.
Any other horsemen's organization may apply to the commission to be
approved as the qualified organization to receive payment of the one
percent of all purses by submitting to the commission proof of both,
A. 10009--B 62
that (i) such organization represents more than fifty-one percent of all
the owners and trainers using the same facilities and (ii) the
horsemen's organization previously approved as qualified by the commis-
sion does not represent fifty-one percent of all the owners and trainers
using the same facilities. If the commission is satisfied that the
documentation submitted with the application of any other horsemen's
organization is conclusive with respect to subparagraphs (i) and (ii) of
this paragraph, the commission may approve the applicant as the quali-
fied recipient organization.
In the best interests of racing, upon receipt of such an application,
the commission may direct the payments to the previously qualified
horsemen's organization to continue uninterrupted, or it may direct the
payments to be withheld and placed in interest-bearing accounts for a
period not to exceed ninety days, during which time the commission shall
review and approve or disapprove the application. Funds held in such
manner shall be paid to the organization approved by the commission. In
no event shall the commission accept more than one such application in
any calendar year from the same horsemen's organization.
The funds authorized to be paid by the commission are to be used
exclusively for the benefit of those horsemen racing in New York state
through the administrative purposes of such qualified organization,
benevolent activities on behalf of backstretch employees, and for the
promotion of equine research.
c. Of the sums retained by any harness racing association or corpo-
ration, an amount equal to one percent of the total pools resulting from
on-track regular, multiple and exotic bets and an amount equal to three
percent of the total pools resulting from on-track super exotic bets
shall be paid to the agriculture and New York state horse breeding
development fund.
d. Every harness racing association or corporation shall pay to the
commission as a regulatory fee, which fee is hereby levied, six-tenths
of one percent of the total daily on-track pari-mutuel pools of such
association or corporation.
4. Notwithstanding any other provisions of this chapter, there shall
be no pari-mutuel tax imposed upon the compensation received by any
harness racing association or corporation in consideration for (a)
permission to have wagering conducted outside this state on races run by
such association or corporation, and (b) the simulcasting outside this
state of races run by such association or corporation, except for such
permission or such simulcasting as may be granted to an off-track
betting operator in the state of Connecticut by a harness racing associ-
ation or corporation located in Nassau or Westchester county. Any such
association or corporation so simulcasting to an off-track betting oper-
ator in the state of Connecticut shall pay to the New York commissioner
of taxation and finance a reasonable tax for such permission and privi-
lege for such simulcasting, which is hereby levied, at the following
rates: one and one-tenth [per centum] PERCENT of total daily regular and
multiple bets; three and one-tenth [per centum] PERCENT of total daily
exotic bets; and three and one-half [per centum] PERCENT of total daily
super exotic bets.
5. [Tax rates in event of failure to maintain] MAINTENANCE OF pari-mu-
tuel racing activity. [a. Notwithstanding any other provision of this
section to the contrary, for] FOR any calendar year commencing on or
after January first, nineteen hundred eighty-nine, [in which] a harness
racing association or corporation [does] SHALL not conduct [a minimum
number of] FEWER pari-mutuel programs and pari-mutuel races at its
A. 10009--B 63
facilities [equal to at least] THAN ninety percent of the programs and
races so conducted during nineteen hundred eighty-five or during nine-
teen hundred eighty-six, whichever is less, [in lieu of the tax rates
set forth in subdivision one of this section the applicable pari-mutuel
tax rates for such association or corporation with respect to on-track
pari-mutuel betting pools during such year shall be as follows:
(i) For such an association or corporation authorized to operate in
Westchester or Nassau county: of total daily on-track pools resulting
from regular bets, three and seventy-five hundredths percent of the
first five hundred thousand dollars comprising such pools and five and
twenty-five hundredths percent of the amount in excess of five hundred
thousand dollars, plus fifty percent of the breaks; of total daily
on-track pools resulting from multiple bets, four and seventy-five
hundredths percent of the first three hundred thousand dollars compris-
ing such pools and six and twenty-five hundredths percent of the amount
in excess of three hundred thousand dollars, plus fifty percent of the
breaks; of total daily on-track pools resulting from exotic bets, eight
and seventy-five hundredths percent of the first two hundred thousand
dollars comprising such pools, and ten and twenty-five hundredths
percent of the amount in excess of two hundred thousand dollars, plus
fifty percent of the breaks; and of total daily on-track pools resulting
from super exotic bets, seven percent, plus fifty percent of the breaks;
and
(ii) For any harness racing association or corporation other than one
described in subparagraph (i) of this paragraph: of total daily on-track
pools resulting from regular bets, one and one-half percent, plus fifty
percent of the breaks; of total daily on-track pools resulting from
multiple bets, two percent, plus fifty percent of the breaks; of total
daily on-track pools resulting from exotic bets, six and one-half
percent, plus fifty percent of the breaks; and of total daily on-track
pools resulting from super exotic bets, seven percent, plus fifty
percent of the breaks.
b. The provisions of this subdivision shall not apply to an associ-
ation or corporation for any calendar year for which the commission
certifies to the commissioner of taxation and finance:
(i) by December fifteenth of the year immediately preceding such year,
that such association or corporation has been assigned for such year,
from the programs and races it requested, at least the minimum number of
programs and races prescribed in paragraph a of this subdivision, or, if
fewer than such number were assigned for such year, that the assignment
of such lesser number was for] UNLESS SUCH ASSOCIATION OR CORPORATION
DEMONSTRATES TO THE SATISFACTION OF THE COMMISSION good cause due to
factors beyond the control of such association or corporation or because
the commission [found] FINDS that it would be uneconomical or impracti-
cal for such association or corporation to be assigned OR CONDUCT the
prescribed number[; and
(ii) by January thirty-first of the year immediately subsequent to
such year, that such association or corporation did conduct such number
of programs and races as were certified pursuant to subparagraph (i) of
this paragraph, or if it failed to conduct such number that such failure
was for good cause due to factors beyond its control or because the
commission found it uneconomical or impractical for such association or
corporation to conduct such a number.
c. For any calendar year for which the commission does not certify
pursuant to the provisions of subparagraph (i) of paragraph b of this
subdivision with respect to an association or corporation, the tax
A. 10009--B 64
imposed by this section shall be computed by substituting the provisions
of paragraph a of this subdivision for the provisions of paragraph a or
b, whichever is applicable, of subdivision one of this section and shall
pay the tax so computed to the commissioner of taxation and finance. In
such computation and payment, all other provisions of this section shall
apply as if the provisions of this paragraph and of paragraph a of this
subdivision had been incorporated in whole in paragraph a or b, whichev-
er is applicable, of subdivision one of this section.
d. For any calendar year for which the commission does not certify
pursuant to the provisions of subparagraph (ii) of paragraph b of this
subdivision with respect to an association or corporation, the tax
required to be paid hereunder for such year shall be equal to the
difference between the tax imposed pursuant to the provisions of para-
graph a of this subdivision and the tax imposed pursuant to the
provisions of paragraph a or b, whichever is applicable, of subdivision
one of this section, less one-half of such difference in recognition of
purses that were required to be paid, plus an additional amount equal to
ten percent of such tax in the event of a willful failure to comply with
the provisions of subparagraph (ii) of paragraph b of this subdivision
and such association or corporation shall pay the tax so computed to the
commissioner of taxation and finance on or before March fifteenth of the
following year. Notwithstanding the provisions of this subdivision, in
the event that upon appeal from the determination of the commission that
the certification provided in paragraph b of this subdivision will not
be made, it is finally determined that the commission erred in failing
to so certify and that any moneys received by the commissioner of taxa-
tion and finance under paragraph c of this subdivision were paid in
error, the same shall be refunded at the rate of interest of six percent
per annum. Payment of such tax due, or the anticipation of such payment,
shall not affect the determination of purses in the year in which such
tax arises or in the year in which such payment is made nor shall such
payment in any other manner be considered in any statutory or contractu-
al calculation of purse obligations.
e. Written notice of the certification of the commission pursuant to
the provisions of paragraph b of this subdivision shall be given by the
commission to the applicable association or corporation by the dates
therein specified. In like manner, written notice that such certif-
ication will not be made shall be given by the commission to the commis-
sioner of taxation and finance and the applicable association or corpo-
ration by such dates].
§ 5. Subdivision 1 of section 418 of the racing, pari-mutuel wagering
and breeding law, as amended by chapter 243 of the laws of 2020, is
amended to read as follows:
1. Every association or corporation authorized under [sections two
hundred twenty-two through seven] SECTION FOUR hundred five of this
[chapter] ARTICLE to conduct pari-mutuel betting at a quarter horse race
meeting on races run thereat shall distribute all sums deposited in any
pari-mutuel pool to the holders of winning tickets therein provided such
tickets be presented for payment before April first of the year follow-
ing the year of their purchase, less seventeen percent of the total
deposits in pools resulting from regular on-track bets and less nineteen
percent of the total deposits in pools resulting from multiple bets and
less twenty-five percent of the total deposits in pools resulting from
exotic on-track bets[, plus the breaks]. "Multiple bet" or "multiple
wager" shall mean a single bet or wager on two horses, evidenced by a
single ticket and representing an interest in a single betting pool.
A. 10009--B 65
"Exotic bet" or "exotic wager" shall mean a single bet or wager on three
or more horses, evidenced by a single ticket and representing an inter-
est in a single betting pool. [The breaks for regular bets and multiple
bets are hereby defined as the odd cents over any multiple of ten or for
exotic bets, over any multiple of fifty calculated on the basis of one
dollar and otherwise payable to a patron.] Of the sum so retained [the
applicable tax rates for regular bets shall be three percent; the appli-
cable tax rates for multiple bets shall be three and one-half percent;
the applicable tax rates for exotic bets] THERE shall be eight percent,
plus sixty-five percent of the amount of the breaks from on-track regu-
lar, multiple and exotic bets shall be paid by such corporation or asso-
ciation to the department of taxation and finance as a reasonable tax by
the state for the privilege of conducting pari-mutuel betting on the
races run at the quarter horse race meetings held by such corporation or
association, which tax is hereby levied, [and the balance of the
retained percentage of such pool and of the breaks may be held by such
corporation or association for its own use and purposes] IN THE APPLICA-
BLE PERCENTAGE SET FORTH IN SUBDIVISION ONE OF SECTION ONE HUNDRED THIR-
TY-SIX OF THIS CHAPTER. The payment of such state tax shall be made to
the department of taxation and finance at such regular intervals as the
department of taxation and finance may require, and shall be accompanied
by a report under oath showing the total of all such contributions
together with such other information as the department of taxation and
finance may require. A penalty of five percent and interest at the rate
of one percent per month from the date the report is required to be
filed to the date of payment of the tax shall be payable in case any tax
imposed by this section is not paid when due. If the department of taxa-
tion and finance determines that any moneys received under this section
were paid in error, it may cause the same to be refunded without inter-
est out of any moneys collected thereunder, provided an application
therefor is filed with it within one year from the time the erroneous
payment was made. Such taxes, interest and penalties when collected,
after the deduction of refunds of taxes erroneously paid, shall be paid
by the department of taxation and finance into the general fund of the
state treasury. [Ten percent of the breaks shall be paid to the New York
state quarter horse breeding and development fund.]
§ 6. Subdivisions 1, 5, 7 and 8 of section 527 of the racing, pari-mu-
tuel wagering and breeding law, as amended by chapter 18 of the laws of
2008, the opening paragraph of subdivision 1 and subdivision 5 as
amended by chapter 243 of the laws of 2020, are amended to read as
follows:
1. The disposition of the retained commission from pools resulting
from regular, multiple or exotic bets, as the case may be, whether
placed on races run within a region or outside a region, conducted by
racing corporations, harness racing associations or corporations, quar-
ter horse racing associations or corporations or races run outside the
state shall be governed by the tables in paragraphs a and b of this
subdivision. [The rate denominated "state tax"] THERE shall [represent
the rate of] BE PAID BY EACH REGIONAL CORPORATION CONDUCTING OFF-TRACK
BETTING, AS a reasonable tax imposed upon the retained commission for
the privilege of conducting off-track pari-mutuel betting, which tax is
hereby levied [and], A PERCENTAGE OF ALL MONEY WAGERED ON LIVE RACES
THROUGH SUCH CORPORATION, WHICH shall be payable in the manner set forth
in this section AND IN SUBDIVISION ONE OF SECTION ONE HUNDRED THIRTY-SIX
OF THIS CHAPTER. Each off-track betting corporation shall pay to the
commission as a regulatory fee, which fee is hereby levied, six-tenths
A. 10009--B 66
of one percent of the total daily pools of such corporation. Each corpo-
ration shall also pay twenty percent of the breaks derived from bets on
OUT-OF-STATE harness races and fifty percent of the breaks derived from
bets on all other OUT-OF-STATE races to the agriculture and New York
State horse breeding and development fund and to the thoroughbred breed-
ing and development fund, the total of such payments to be apportioned
fifty percent to each such fund. For the purposes of this section, the
New York city, Suffolk, Nassau, and the Catskill regions shall consti-
tute a single region and any thoroughbred track located within the Capi-
tal District region shall be deemed to be within such single region. A
"regional meeting" shall refer to either harness or thoroughbred meet-
ings, or both, except that a franchised corporation shall not be a
regional track for the purpose of receiving distributions from bets on
thoroughbred races conducted by a thoroughbred track in the Catskill
region conducting a mixed meeting. With the exception of a harness
racing association or corporation first licensed to conduct pari-mutuel
wagering at a track located in Tioga, Saratoga or Westchester county
after January first, two thousand five, racing corporations first
licensed to conduct pari-mutuel racing after January first, nineteen
hundred eighty-six or a harness racing association or corporation first
licensed to conduct pari-mutuel wagering at a track located in Genesee
County after January first, two thousand five, and quarter horse tracks
shall not be "regional tracks"; if there is more than one harness track
within a region, such tracks shall evenly divide payments made pursuant
to the tables in paragraphs a and b of this subdivision when neither
track is running. In the event a track elects to reduce its retained
percentage from any or all of its pari-mutuel pools, the payments to the
track holding the race and the regional track required by paragraphs a
and b of this subdivision shall be reduced in proportion to such
reduction. Nothing in this section shall be construed to authorize the
conduct of off-track betting contrary to the provisions of section five
hundred twenty-three of this article.
a. Regular and multiple bets:
Track
holding Regional [State]
race track [tax]
Pools on races run by:
Franchised corporations:
in region;..................... 3.50 N/A [.30]
out-region, during a regional
meeting;....................... 1.00 2.50 [.30]
out-region, no regional
meeting;....................... 1.75 1.75 [.30]
Racing corporations
in special
betting district:
in-special betting district;... 3.80 N/A [1.00]
out-district, during a regional
meeting;....................... 1.00 2.80 [1.00]
out-district, no regional
meeting;....................... 1.90 1.90 [1.00]
Harness racing associations or
corporations within Suffolk,
Nassau, or Catskill regions:
A. 10009--B 67
in region;..................... 4.00 N/A [.70]
out-region, during a regional
meeting;....................... 1.00 3.00 [.70]
out-region, no regional
meeting;....................... 2.00 2.00 [.70]
Harness racing associations or
corporations:
in-special betting
district;...................... 4.00 N/A [.50]
out-district, during a
regional meeting;.............. 1.00 3.00 [.50]
out-district, no regional
meeting;....................... 2.00 2.00 [.50]
Other harness racing associations
or corporations:
in region;..................... 4.00 N/A [.50]
out-region, during a regional
meeting;....................... 1.00 3.00 [.50]
out-region, no regional
meeting;....................... 2.00 2.00 [.50]
Quarter horse racing associations
or corporations;............... 3.50 N/A [1.10]
Out-of-state tracks:............. 3.50 divided [1.10]
pursuant to
paragraph
g of this
subdivision
b. Exotic bets:
Track
holding Regional [State]
race track [tax]
Pools on races run by:
Franchised corporations:
in region;..................... 6.50 N/A [1.30]
out-region, during a regional
meeting;....................... 2.00 4.50 [1.30]
out-region, no regional
meeting;....................... 3.25 3.25 [1.30]
Racing corporations
in special
betting district:
in-special betting districts;.. 6.80 N/A [3.00]
out-district, during a regional
meeting;....................... 2.00 4.80 [3.00]
out-district, no regional
meeting;....................... 3.40 3.40 [3.00]
Harness racing associations or
corporations within Suffolk,
Nassau, or Catskill
regions:
in region;..................... 7.00 N/A [2.70]
out-region, during a regional
meeting;....................... 2.00 5.00 [2.70]
A. 10009--B 68
out-region, no regional
meeting;....................... 3.50 3.50 [2.70]
Harness racing associations
or corporations:
in-special betting
district;...................... 7.00 N/A [2.50]
out-district, during a
regional meeting;.............. 2.00 5.00 [2.50]
out-district, no regional
meeting;....................... 3.50 3.50 [2.50]
Other harness racing associa-
tions or corporations:
in-region;..................... 7.00 N/A [2.50]
out-region, during a
regional meeting;.............. 2.00 5.00 [2.50]
out-region, no regional
meeting;....................... 3.50 3.50 [2.50]
Quarter horse racing associa-
tions or corporations;......... 6.50 N/A [3.10]
Out-of-state tracks:............. 6.50 divided [3.10]
pursuant to
paragraph
g of this
subdivision
c. Super Exotic Bets:
Track
holding Regional [State]
race track [tax]
Pools on races run by:
Franchised corporations:
in region;..................... 12.00 N/A [3.50]
out-region, during a regional
meeting;....................... 3.00 10.00 [2.50]
out-region, no regional
meeting;....................... 6.00 6.00 [3.50]
Racing corporations
in special
betting district:
in-special betting districts;.. 12.00 N/A [3.50]
out-district, during a regional
meeting;....................... 3.00 10.00 [2.50]
out-district, no regional
meeting;....................... 6.00 6.00 [3.50]
Harness racing associations or
corporations within Suffolk,
Nassau, or Catskill regions:
in-region;..................... 12.00 N/A [3.50]
out-region, during a regional
meeting;....................... 3.00 10.00 [2.50]
out-region, no regional
meeting;....................... 6.00 6.00 [3.50]
Harness racing associations
or corporations:
in-special betting
A. 10009--B 69
district;...................... 12.00 N/A [3.50]
out-district, during a
regional meeting;.............. 3.00 10.00 [2.50]
out-district, no regional
meeting;....................... 6.00 6.00 [3.50]
Other harness racing associations
or corporations:
in-region;..................... 12.00 N/A [3.50]
out-region, during a
regional meeting;.............. 3.00 10.00 [2.50]
out-region, no regional
meeting;....................... 6.00 6.00 [3.50]
d. For the portion of the Western region included within a thorough-
bred special betting district and not within a harness special betting
district, when no thoroughbred race meeting is conducted by a racing
corporation located within such thoroughbred special district, the
distribution of the retained commission to "regional tracks" by such
regional corporation derived from wagers placed within such special
betting district shall be divided as follows:
(i) when a harness corporation located in such district is conducting
a meet the full amount to such harness corporation; and when a harness
corporation in the region but not located in such district is conducting
a meet, forty percent to the thoroughbred racing corporation and sixty
percent to the harness corporation conducting a meet;
(ii) when no racing is being conducted, forty [per centum] PERCENT to
the thoroughbred racing corporation and the balance divided equally
between the harness racing corporations located in such region; and
(iii) when no racing is being conducted and no more than one harness
racing association is licensed during the calendar year to conduct a
race meeting, fifty [per centum] PERCENT to the thoroughbred racing
corporation and fifty [per centum] PERCENT to the harness racing associ-
ation located in such region.
e. For the portions of the Capital District, Catskill, Central and
Western regions included within a harness racing special betting
district, except those portions described in paragraph e of this subdi-
vision, the harness track located in such special district shall be the
"regional track" for the purposes of the distributions made pursuant to
paragraphs a and b of this subdivision.
f. For the portions of the Catskill, Central and Western regions
included in both a thoroughbred special betting district and a harness
special betting district, the distribution of the retained commission to
"regional tracks" by such regional corporations derived from wagers
placed within such portions of such regions shall be divided as follows:
(i) when a harness corporation located in the harness special betting
district is conducting a meet and no thoroughbred race meeting is being
conducted by a racing corporation located in the thoroughbred special
betting district, the full amount to such harness association;
(ii) when a thoroughbred corporation located in the thoroughbred
special betting district is conducting a meet and no harness race meet-
ing is being conducted by a harness association located in the harness
special betting district, the full amount to such thoroughbred corpo-
ration;
(iii) when no racing is being conducted the amount to be divided even-
ly between the thoroughbred track located in such thoroughbred special
A. 10009--B 70
betting district and the harness track located in such harness special
betting district.
g. With respect to the amounts payable to track operators from the
retained commission on pools resulting from thoroughbred or harness
races outside this state, the regional corporation shall first pay any
contractual obligation owed to the out-of-state track operator, or to
another state or entity thereof, as the case may be. The balance of such
amounts shall be divided as follows:
(i) for the betting region composed of the New York city, Suffolk and
Nassau regions and the portion of the Catskill region outside a special
betting district: when both harness and thoroughbred meets are in
progress in such betting region, the balance to the association or
corporation holding the same type of meet as the out-of-state race; when
only a harness meet is in progress in such betting region, the balance
to the harness track operator; when only a thoroughbred meet is in
progress in such betting region, the balance to the thoroughbred track
operator; when no meet is in progress, fifty [per centum] PERCENT of the
balance to the franchised corporation and the remainder divided among
harness racing corporations or associations within such betting region;
(ii) for the Capital District region and the portion of the Western
region outside a special betting district: when a harness meet is in
progress in such region and a thoroughbred meet is in progress outside a
special betting district, the balance to whichever operator is conduct-
ing the same type of meet as the out-of-state race; when no harness meet
is in progress, the balance to the racing association outside a special
betting district; and when no meet is in progress within such region and
no thoroughbred meet is in progress outside a special betting district,
fifty [per centum] PERCENT of the balance to the racing association
outside a special betting district and the remainder to the licensed
harness racing corporations or associations within such region;
(iii) for the portion of the Western region within a thoroughbred
special betting district but not within a harness special betting
district: when a harness meet and a thoroughbred meet are in progress
within such region and the district, the balance to the association or
corporation conducting the same type of meet as the out-of-state or
out-of-region race; when a harness meet is in progress in such region
but no thoroughbred meet is in progress in the special betting district,
the balance to the harness track operator within such region; when only
a thoroughbred meet is in progress in such betting region, the balance
to the thoroughbred track operator; and when no meet is in progress
within such region the balance is divided, forty [per centum] PERCENT to
the thoroughbred racing corporation within the district and the remain-
der divided between the harness racing associations or corporations
within the region provided, however, that if no more than one harness
racing association or corporation is licensed to conduct a race meeting,
fifty [per centum] PERCENT to the thoroughbred racing corporation within
the district and fifty [per centum] PERCENT to the licensed harness
racing association within the region;
(iv) for the portions of the Capital District, Catskill, Central and
Western regions included in a harness special betting district: when a
harness meeting is in progress in such harness special betting district
and a thoroughbred meeting is in progress outside the thoroughbred
special betting district, the balance to the association or corporation
holding the same kind of race; when no harness meet is in progress, the
balance to the racing corporation holding a thoroughbred race meeting
outside the thoroughbred special betting district; when a harness meet-
A. 10009--B 71
ing is in progress in the harness special betting district and no
thoroughbred meeting is in progress outside the thoroughbred special
betting district, the balance to the harness track operating in such
harness special betting district; when no harness meet is being held
within such harness special betting district and no thoroughbred meet is
being held outside the thoroughbred special betting district, fifty [per
centum] PERCENT of such amount to the harness racing corporation in such
harness special betting district and fifty [per centum] PERCENT to the
thoroughbred track operator outside the thoroughbred special betting
district;
(v) for the portions of the Catskill and Western regions included in
both a thoroughbred special betting district and a harness special
betting district: when a harness meet and a thoroughbred meet are in
progress within both such districts the balance to the association or
corporation conducting the same type of meet as the out-of-state race;
when a harness meet is in progress but no thoroughbred meet the balance
to the harness track operator within such district; when a thoroughbred
meet is in progress but no harness meet the balance to the thoroughbred
track operator in the district; and when no meet is in progress the
balance to be divided evenly between the harness track operator in the
harness special betting district and the thoroughbred operator located
within the thoroughbred special betting district;
(vi) notwithstanding any contrary provision contained in this section,
the portion of retained commissions from off-track pools distributable
to the track holding the race shall be for regular and multiple bets:
five and three-quarters [per centum] PERCENT and for exotic bets: seven
and three-quarters [per centum] PERCENT for the three races commonly
referred to as the Triple Crown consisting of the Kentucky Derby, the
Preakness and the Belmont Stakes, run respectively at Churchill Downs,
Kentucky, at Pimlico, Maryland and at Belmont Park, New York; addi-
tionally the same commissions shall apply to the series of races known
as the Breeders' Cup and the portion distributable from retained commis-
sions shall be paid to the Breeders' Cup, ltd. irrespective of whether
the races are held at a track within or without the state; provided,
however, that as a condition precedent to the obligation of a regional
corporation to make the foregoing distributions as required in this
subparagraph with respect to wagers on the Belmont Stakes, such regional
corporation shall have accepted wagers on at least one or both of the
immediately preceding Kentucky Derby and Preakness races; and provided
further that the distributable portion of such retained commissions with
respect to the Belmont Stakes shall be deemed to include the additional
amounts payable pursuant to the provisions of paragraph b of subdivision
three of this section; and provided further, notwithstanding the forego-
ing provisions of this subparagraph, that of the retained commissions
resulting from off-track wagers placed in a special betting district on
the Belmont Stakes, the track holding the race shall receive one per
centum from regular and multiple bets and two [per centum] PERCENT from
exotic bets, and the thoroughbred track conducting racing within such
district shall receive four and three-quarters [per centum] PERCENT from
regular and multiple bets, and five and three-quarters [per centum]
PERCENT from exotic bets.
5. a. One percent of daily pools derived from bets on harness races
shall be paid to the agriculture and New York state breeding and devel-
opment fund except that for super exotic betting pools such amount shall
be three percent of such bets.
A. 10009--B 72
b. An amount equal to one-half of one percent of total daily off-track
pari-mutuel pools resulting from regular, multiple and exotic bets and
three percent of super exotic bets on thoroughbred or steeplechase races
shall be paid to the New York state thoroughbred breeding and develop-
ment fund.
c. From the total breaks retained by a regional corporation, an amount
equal to ten percent of the breaks derived from bets on OUT-OF-STATE
quarter horse races shall be paid to the New York state quarter horse
breeding and development fund.
7. In addition to any other amount required by this section, of the
portion of commissions retained by a regional corporation, an amount
equal to one [per centum] PERCENT of multiple pools derived from wagers
on races conducted by a thoroughbred racing corporation, licensed by the
board, other than a franchised corporation, shall be paid to such
thoroughbred racing corporation and held by such corporation for its own
use and purposes, except that an amount equal to one-half [per centum]
PERCENT shall be used exclusively for the purpose of increasing purses,
including stakes, premiums and prizes, awarded to horses in races
conducted by such corporation. Any portion of said amount not so used
during any year shall be used during the following year, failing which
it shall be returned to the regional corporation on or before April
first in the year following the year in which it is not so used to be
distributed to the participating local governments.
8. From the nineteen [per centum] PERCENT of the total deposits in
pools resulting from multiple bets on thoroughbred races outside this
state, two [per centum] PERCENT shall be paid to a franchised corpo-
ration to be used exclusively for the purpose of increasing purses,
including stakes, premiums and prizes. Any portion of said amount not so
used during any year shall be used during the following year, failing
which it shall be returned to the regional corporation on or before
April first in the year following the year in which it is not so used to
be distributed to the participating local governments. Notwithstanding
the provisions of section fifteen of chapter three hundred sixty-three
of the laws of nineteen hundred eighty-four, the provisions of this
subdivision shall not expire.
§ 7. Subdivisions 1, 3, 3-a and 6 of section 532 of the racing, pari-
mutuel wagering and breeding law, subdivisions 1 and 3 as amended by
chapter 243 of the laws of 2020, subparagraph (vi) of paragraph b of
subdivision 3 as amended by chapter 526 of the laws of 2022, and subdi-
visions 3-a and 6 as added by chapter 346 of the laws of 1990, are
amended to read as follows:
1. Notwithstanding any other provision of law, each regional off-track
betting corporation, or off-track betting operator, including the New
York city off-track betting corporation, conducting off-track betting
shall impose a surcharge of five percent on the portion of pari-mutuel
wagering pools distributable to persons having placed bets at off-track
betting facilities located within such region. The revenues derived from
such surcharge[, plus the breaks,] shall be held separate and apart from
any amounts otherwise authorized to be retained from pari-mutuel pools.
Such surcharge is hereby levied subject to the conditions set forth in
this subdivision and article ten of this chapter.
3. The revenues received from any surcharge imposed by subdivision one
of this section[, plus the breaks,] shall be distributed monthly, as
follows:
a. fifty percent to such city, or to the counties and cities entitled
to receive revenues from the regional corporation pursuant to section
A. 10009--B 73
five hundred sixteen of this chapter and in the same proportion as
provided therein, or to an off-track betting operator; and
b. the balance as follows:
(i) where the track conducting the race on which the bet was placed is
located within a city with a population in excess of one hundred thou-
sand, to such city;
(ii) where the track conducting the race on which the bet was placed
is not located within a city with a population in excess of one hundred
thousand, to the county in which such track is located;
(iii) where the track conducting the race on which the bet was placed
is located partially within a city with a population in excess of one
million and partially within a county, twenty-five percent of such
balance to the city and the remainder to the county;
(iv) where the track conducting the race on which the bet was placed
is located outside the state, in the same manner as described in para-
graph a of this subdivision;
(v) where the track conducting the race is located in a thoroughbred
special betting district and is simulcasting pursuant to section one
thousand eight of this chapter outside such special betting district,
ninety percent to the off-track betting operator and ten percent to the
county in which such track is located; and
(vi) for the period of September first, two thousand twenty-two until
August thirty-first, two thousand twenty-seven and where the track
conducting the race on which the bet was placed is a harness track
located in the county of Erie, to such track.
3-a. Such five [per centum] PERCENT surcharge herein provided is here-
by increased by a supplemental one [per centum] PERCENT surcharge on the
portion of pari-mutuel wagering pools of multiple, exotic and super
exotic bets distributable to persons having placed bets at off-track
betting facilities to be distributed in accordance with the provisions
of section five hundred nine-a or six hundred nine-a of this chapter,
whichever may be applicable to the corporation with which such bets
originated.
6. Notwithstanding any provision herein or in section one thousand
nine of this chapter to the contrary where the track conducting the race
is a thoroughbred track located in the Catskill region conducting a
mixed meeting such surcharge shall be collected on all wagers placed in
branch offices or simulcast theaters of a regional off-track betting
corporation. The revenues received from any such surcharge imposed in
accordance with this section [plus the breaks] shall be distributed
monthly as follows:
a. one-fifth to the county in which such track is located;
b. three-fifths to a regional track located in the region in which the
bet is placed in accordance with provisions of section five hundred
twenty-seven of this article, one-half thereof to be used for purses at
such regional track, except that in any region containing two or more
regional tracks such tracks shall be entitled to an equal share;
c. one-fifth to be retained by the off-track betting operator with
whom such bet originated as operating revenues.
§ 8. Paragraph c of subdivision 1 of section 904 of the racing, pari-
mutuel wagering and breeding law, as amended by chapter 243 of the laws
of 2020, is amended to read as follows:
c. Every association and corporation shall distribute all sums depos-
ited in any pari-mutuel pool to the holders of winning tickets therein,
providing such tickets be presented for payment before April first of
the year following the year of their purchase, less an amount that it
A. 10009--B 74
shall retain at the same rate established by the sending track [plus the
breaks].
§ 9. Paragraph c of subdivision 2 and subdivision 4 of section 905 of
the racing, pari-mutuel wagering and breeding law, paragraph c of subdi-
vision 2 as amended by chapter 243 of the laws of 2020, subdivision 4 as
amended by section 15 of part F3 of chapter 62 of the laws of 2003 and
such section as renumbered by chapter 18 of the laws of 2008, are
amended to read as follows:
c. If different retention or breakage rates than those prevailing at
the site of the New York interface are prescribed by the laws governing
such out-of-state or foreign betting operator, and the commission is
satisfied that it would not be contrary to the public interest to accept
such wagers for combination with New York wagers, calculations of the
current odds and final pay-off prices shall be made as follows:
(i) All New York state and out-of-state and foreign wagers of the same
type shall be combined into single pools for calculation.
(ii) As many tentative payout prices as there are different retention
and breakage rates applicable (including the prevailing New York
RETENTION rate) shall be calculated on the basis of returning the appro-
priate rate of return, less breaks after imposition of each such rate of
retention and breaks.
(iii) To each such out-of-state or foreign operator shall be allocated
an amount sufficient for it to pay the appropriate pay-off to holders of
winning wagers placed with it together with the applicable retention
amount on its total wagers.
(iv) To each New York operator shall be allocated an amount sufficient
for it to pay the appropriate pay-off to holders of winning wagers
placed with it together with the applicable New York retention amount on
its total wagers.
(v) The total amount of the combined pool less the combined total of
all allocations as determined in subparagraphs (iii) and (iv) of this
paragraph shall be credited to a special breakage account. The amount in
such account giving appropriate weight to rates established for breakage
shall be allocated as breaks among all operators in the combined pool in
accordance with the rules and regulations of the commission. Should a
minus pool eventuate in which the total combined pool is insufficient to
reimburse each operator for the allocation due to it then the allocation
due to each such operator shall be reduced as may be appropriate and
such operator shall be responsible for satisfying its liability from its
own operating capital.
4. In those instances in which the retention rates of the out-of-state
track are different from the retention rates authorized in this section,
distribution to each of the entities entitled to receive payment under
section five hundred twenty-seven or article ten of this chapter after
payment of state taxes and regulatory fees shall be adjusted proportion-
ately in an appropriate manner to account for higher or lower retention
rates. For purposes of determining payment on out-of-state wagers the
retention rate shall be the amount sufficient to pay holders of winning
wagers plus any payments required to be made to the out-of-state track
which exceeds two [per centum] PERCENT of handle.
§ 10. Paragraph a of subdivision 3 of section 1007 of the racing,
pari-mutuel wagering and breeding law, as amended by chapter 243 of the
laws of 2020, is amended to read as follows:
a. Of the sums retained by the receiving track from simulcast pools
the pari-mutuel tax shall be levied at the [lower of the pari-mutuel
tax] rate [in effect on December thirty-first, nineteen hundred ninety-
A. 10009--B 75
three at the receiving track, plus ten percent of the breaks or the
following rates: two percent of simulcast pools generated by regular
wagers, two and one-half percent of simulcast pools generated by multi-
ple wagers, and seven percent of simulcast pools generated by exotic and
super exotic wagers, plus ten percent of the breaks] SET FORTH IN SUBDI-
VISION ONE OF SECTION ONE HUNDRED THIRTY-SIX OF THIS CHAPTER.
§ 11. Paragraph a of subdivision 4 of section 1009 of the racing,
pari-mutuel wagering and breeding law, as amended by chapter 243 of the
laws of 2020, is amended to read as follows:
a. Of the sums retained by the operator as provided in this subdivi-
sion, the pari-mutuel tax shall be levied at the [following rates plus
twenty percent of the breaks: from wagers on thoroughbred races, eight-
tenths of one percent of pools generated from regular wagers; one and
three-tenths percent of pools generated from multiple wagers; two and
eight-tenths percent of pools generated from exotic wagers; and three
and one-half percent of pools generated from super exotic wagers; and
from wagers on harness races, one-half of one percent of pools generated
from regular wagers; one percent of pools generated from multiple
wagers; two and one-half percent of pools generated from exotic wagers
and three percent of pools generated from super exotic wagers] RATE SET
FORTH IN SUBDIVISION ONE OF SECTION ONE HUNDRED THIRTY-SIX OF THIS CHAP-
TER.
§ 12. Paragraph i of subdivision 1 of section 1014 of the racing,
pari-mutuel wagering and breeding law, as amended by chapter 243 of the
laws of 2020, is amended to read as follows:
i. Any facility authorized to accept wagers on out-of-state tracks
shall distribute all sums deposited in any pari-mutuel pool to the hold-
ers of winning tickets therein, provided such tickets are presented for
payment prior to April first of the year following the year of their
purchase less eighteen percent of the total deposits in pools resulting
from regular bets, less twenty-one percent of the total deposits in
pools resulting from multiple bets, less twenty-six percent of the total
deposits in pools resulting from exotic bets, less thirty-six percent of
the total deposits in pools resulting from super exotic bets [plus the
breaks as defined in section two hundred thirty-six of this chapter]
except that the retention rates and breaks shall be as prescribed by
another state or country if such wagers are combined with those in the
other state or country pursuant to section nine hundred five of this
chapter.
(1) Of the sum so retained, the applicable tax rate shall be [one and
one-half percent of all such wagers plus fifty percent of the breaks;
provided, however, fifty percent of the breaks accruing from off-track
betting corporations licensed in accordance with section one thousand
eight of this article and from simulcast theaters licensed in accordance
with section one thousand nine of this article, shall be paid to the
agriculture and New York state horse breeding and development fund and
to the thoroughbred breeding and development fund, the total of such
payments to be apportioned fifty percent to each such fund] RATE SET
FORTH IN SUBDIVISION ONE OF SECTION ONE HUNDRED THIRTY-SIX OF THIS CHAP-
TER.
(2) Of the sums so retained, one-half of one percent of all wagers
shall be paid to the New York state thoroughbred breeding and develop-
ment fund, except that of the sums so retained on such wagers at
licensed harness tracks, one-half of one percent shall be paid to the
agricultural and New York State horse breeding and development fund.
A. 10009--B 76
(3) Of the sum so retained, two percent of all wagers shall be paid to
a franchised corporation to be used exclusively for the purpose of
increasing purses, including stakes, premiums and prizes, provided
further that such amount shall not exceed the amount paid to such non-
profit racing association in nineteen hundred ninety-three from wagers
placed on out-of-state tracks on a day when no racing was being
conducted by the non-profit racing association and a racing program was
being conducted by a thoroughbred racing corporation located in the
state. The excess, if any, shall be paid to a thoroughbred racing corpo-
ration located in the state until August thirty-first, nineteen hundred
ninety-five and on and after July nineteen, nineteen hundred ninety-six
to be used exclusively for the purpose of increasing purses, including
stakes, premiums and prizes.
(4) Any thoroughbred racing corporation or harness racing association
or corporation or off-track betting corporation authorized pursuant to
this section shall pay to the commission as a regulatory fee, which fee
is hereby levied, six-tenths of one percent of all wagering pools.
§ 13. The opening paragraph of subdivision 3 of section 1015 of the
racing, pari-mutuel wagering and breeding law, as amended by chapter 243
of the laws of 2020, is amended to read as follows:
Any facility authorized to accept wagers on out-of-state tracks shall
distribute all sums deposited in any pari-mutuel pool to the holders of
any tickets therein provided such tickets are presented for payment
prior to April first of the year following the year of their purchase
less nineteen percent of total deposits in pools resulting from regular
bets, less twenty-one percent of total deposits of pools resulting from
multiple bets, less twenty-seven percent of total deposits of pools
resulting from exotic bets, less thirty-six percent of total deposits of
pools resulting from super exotic bets [plus the breaks as defined in
section three hundred eighteen of this chapter] except that the
retention rates and breaks shall be as prescribed by another state or
country if such wagers are combined with those in the other state or
country pursuant to section nine hundred five of this chapter.
§ 14. Paragraph a, the opening paragraph of paragraph b, subparagraph
1 of paragraph b, clauses (A) and (B) of subparagraph 3 of paragraph b,
clauses (A) and (B) of subparagraph 4 of paragraph b, clauses (A), (B)
and (D) of subparagraph 5 of paragraph b, and clauses (A) and (B) of
subparagraph 6 of paragraph b of subdivision 1 of section 1016 of the
racing, pari-mutuel wagering and breeding law, paragraph a, clauses (A)
and (B) of subparagraph 3 of paragraph b, clauses (A) and (B) of subpar-
agraph 4 of paragraph b, clauses (A), (B) and (D) of subparagraph 5 of
paragraph b, clauses (A) and (B) of subparagraph 6 of paragraph b as
amended by chapter 18 of the laws of 2008, the opening paragraph and
subparagraph 1 of paragraph b as amended by chapter 243 of the laws of
2020, are amended to read as follows:
a. Each off-track betting branch office accepting wagers on an out-of-
state track shall accept wagers on races run at all in-state thorough-
bred tracks [which] THAT are conducting racing programs and every simul-
casting facility licensed in accordance with sections one thousand eight
and one thousand nine of this article [which] THAT is accepting wagers
and displaying the simulcast signal from an out-of-state track shall
similarly accept wagers and display the signal from all in-state
thoroughbred tracks conducting racing programs.
Any facility authorized to accept wagers on out-of-state tracks shall
distribute all sums deposited in any pari-mutuel pool to the holders of
winning tickets therein, provided such tickets are presented for payment
A. 10009--B 77
prior to April first of the year following the year of their purchase
less eighteen percent of the total deposits in pools resulting from
regular bets, less twenty-one percent of the total deposits in pools
resulting from multiple bets, less twenty-six percent of the total
deposits in pools resulting from exotic bets, and less twenty-seven
percent of the total deposits in pools resulting from super exotic bets,
[plus the breaks as defined in section two hundred thirty-six of this
chapter] MAY BE REQUIRED BY ANOTHER JURISDICTION except that the
retention rates and breaks shall be as prescribed by another state or
country if such wagers are combined with those in the other state or
country pursuant to section nine hundred five of this chapter.
(1) Of the sums so retained, the applicable tax rates shall be as
[governed by clauses (A) and (B) of subparagraphs three, four, five and
six of this paragraph plus fifty percent of the breaks; provided, howev-
er, fifty percent of the breaks accruing from off-track betting corpo-
rations licensed in accordance with section one thousand eight of this
article and from simulcast theaters licensed in accordance with section
one thousand nine of this article, shall be paid to the agriculture and
New York State horse breeding and development fund and to the thorough-
bred breeding and development fund, the total of such payments to be
apportioned fifty percent to each such fund] AS SET FORTH IN SUBDIVISION
ONE OF SECTION ONE HUNDRED THIRTY-SIX OF THIS CHAPTER.
(A) Of the sums so retained on days when a franchised corporation is
not conducting a race meeting within the state and a thoroughbred racing
corporation is conducting a race meeting
Super-
Regular Multiple Exotic exotic
bets bets bets bets
[State Tax 1.50 1.50 1.50 1.50]
Non-franchised
Thoroughbred Racing
corporation 0.50 0.50 0.50 0.50
Non-franchised
Thoroughbred Racing
corporation payments to purses 1.50 2.00 1.50 2.00
Franchised corporation 0.50 0.50 0.50 0.50
Franchised corporation
payments to purses 2.00 2.00 2.50 4.00
(B) Of the sums so retained on days when a franchised corporation is
conducting a race meeting within the state
Super-
Regular Multiple Exotic exotic
bets bets bets bets
[State Tax 1.00 1.00 1.00 1.00]
Non-franchised
Thoroughbred Racing
corporation 0.50 0.50 0.50 0.00
A. 10009--B 78
Non-franchised
Thoroughbred Racing
corporation payments to purses 0.50 0.50 0.50 0.50
Franchised corporation 2.00 1.50 1.50 2.00
Franchised corporation
payments to purses 2.00 3.00 3.00 5.00
(A) Of the sums so retained on days when a franchised corporation is
not conducting a race meeting within the state and a thoroughbred racing
corporation is conducting a race meeting
Super-
Regular Multiple Exotic exotic
bets bets bets bets
[State Tax 1.00 1.00 1.00 1.00]
Non-franchised
Thoroughbred Racing 2.00 2.00 2.00 2.50
corporation payments to purses
Franchised corporation 1.00 1.00 1.00 1.00
Franchised corporation
payments to purses 2.00 2.00 2.50 4.00
(B) Of the sums so retained on days when a franchised corporation is
conducting a race meeting within the state
Super-
Regular Multiple Exotic exotic
bets bets bets bets
[State Tax 0.50 0.50 0.50 0.50]
Non-franchised
Thoroughbred racing 0.50 0.25 0.50 0.50
corporation
Non-franchised
Thoroughbred racing 0.50 0.25 0.50 0.50
corporation payments to purses
Franchised corporation 2.25 2.25 2.00 2.50
Franchised corporation
payments to purses 2.25 3.25 3.00 4.50
(A) Of the sums so retained on days when a franchised corporation is
not conducting a race meeting within the state and a thoroughbred racing
corporation is conducting a race meeting
Super-
Regular Multiple Exotic exotic
bets bets bets bets
[State Tax 1.50 1.50 1.50 1.50]
A. 10009--B 79
Non-franchised
Thoroughbred racing 0.25 0.25 0.25 0.50
corporation
Non-franchised
Thoroughbred racing 0.75 1.00 0.75 1.00
corporation payments to purses
Franchised corporation 0.25 0.25 0.25 0.25
Franchised corporation
payments to purses 1.00 1.00 2.25 2.00
(B) Of the sums so retained on days when a franchised corporation is
conducting a race meeting within the state
Super-
Regular Multiple Exotic exotic
bets bets bets bets
[State Tax 1.00 1.00 1.00 1.00]
Non-franchised
Thoroughbred racing
corporation 0.25 0.25 0.25 0.25
Non-franchised
Thoroughbred racing
corporation payments to purses 0.25 0.25 0.25 0.25
Franchised corporation 1.00 0.75 0.75 1.00
Franchised corporation
payments to purses 1.00 1.50 1.50 2.50
(D) For wagers placed at a thoroughbred racing corporation the state
tax shall be the amounts specified in [clauses (A) and (B) of this
subparagraph] SUBDIVISION ONE OF SECTION ONE HUNDRED THIRTY-SIX OF THIS
CHAPTER and retention thereafter shall be identical to sums retained for
each type of on-track wager.
(A) Of the sums so retained on days when a franchised corporation is
not conducting a race meeting within the state and a thoroughbred racing
corporation is conducting a race meeting
Super-
Regular Multiple Exotic exotic
bets bets bets bets
[State Tax 1.00 1.00 1.00 1.00]
Non-franchised
Thoroughbred Racing
corporation payments to purses 1.00 1.00 1.00 1.25
Franchised corporation 0.50 0.50 0.50 0.50
Franchised corporation
payments to purses 1.00 1.00 1.25 2.00
A. 10009--B 80
(B) Of the sums so retained on days when a franchised corporation is
conducting a race meeting within the state
Super-
Regular Multiple Exotic exotic
bets bets bets bets
[State Tax 0.50 0.50 0.50 0.50]
Non-franchised
Thoroughbred Racing
corporation 0.25 0.25 0.25 0.25
Non-franchised
Thoroughbred Racing
corporation payments to purses 0.25 0.25 0.25 0.25
Franchised corporation 1.25 1.25 1.00 1.25
Franchised corporation
payments to purses 1.25 2.00 1.50 2.25
§ 15. Subdivision 1 of section 1018 of the racing, pari-mutuel wager-
ing and breeding law, as amended by chapter 18 of the laws of 2008, is
amended to read as follows:
1. Of the sums so retained, the applicable tax rates shall be as set
forth in [this paragraph plus fifty percent of the breaks; provided,
however, fifty percent of the breaks accruing from an off-track betting
corporation licensed in accordance with section one thousand eight of
this article and from simulcast theatres licensed in accordance with
section one thousand nine of this article, shall be paid to the agricul-
ture and New York state horse breeding and development fund] SUBDIVISION
ONE OF SECTION ONE HUNDRED THIRTY-SIX OF THIS CHAPTER.
§ 16. This act shall take effect immediately.
PART X
Section 1. Subdivision 2 of section 509-a of the racing, pari-mutuel
wagering and breeding law, as amended by section 1 of part HH of chapter
59 of the laws of 2025, is amended to read as follows:
2. a. Notwithstanding any other provision of law or regulation to the
contrary, from April nineteenth, two thousand twenty-one to March thir-
ty-first, two thousand twenty-two, twenty-three percent of the funds,
not to exceed two and one-half million dollars, in the Catskill off-
track betting corporation's capital acquisition fund and twenty-three
percent of the funds, not to exceed four hundred forty thousand dollars,
in the Capital off-track betting corporation's capital acquisition fund
established pursuant to this section shall also be available to such
off-track betting corporation for the purposes of statutory obligations,
payroll, and expenditures necessary to accept authorized wagers.
b. Notwithstanding any other provision of law or regulation to the
contrary, from April first, two thousand twenty-two to March thirty-
first, two thousand twenty-three, twenty-three percent of the funds, not
to exceed two and one-half million dollars, in the Catskill off-track
betting corporation's capital acquisition fund established pursuant to
this section, and twenty-three percent of the funds, not to exceed four
hundred forty thousand dollars, in the Capital off-track betting corpo-
A. 10009--B 81
ration's capital acquisition fund established pursuant to this section,
shall be available to such off-track betting corporations for the
purposes of statutory obligations, payroll, and expenditures necessary
to accept authorized wagers.
c. Notwithstanding any other provision of law or regulation to the
contrary, from April first, two thousand twenty-three to March thirty-
first, two thousand twenty-four, twenty-three percent of the funds, not
to exceed two and one-half million dollars, in the Catskill off-track
betting corporation's capital acquisition fund established pursuant to
this section, and one million dollars in the Capital off-track betting
corporation's capital acquisition fund established pursuant to this
section, shall be available to such off-track betting corporation for
the purposes of expenditures necessary to accept authorized wagers; past
due statutory obligations to New York licensed or franchised racing
corporations or associations; past due contractual obligations due to
other racing associations or organizations for the costs of acquiring a
simulcast signal; past due statutory payment obligations due to the New
York state thoroughbred breeding and development fund corporation, agri-
culture and New York state horse breeding development fund, and the
Harry M. Zweig memorial fund for equine research; and past due obli-
gations due the state.
d. Notwithstanding any other provision of law or regulation to the
contrary, from April first, two thousand twenty-four to March thirty-
first, two thousand twenty-five, twenty-three percent of the funds, not
to exceed two and one-half million dollars, in the Catskill off-track
betting corporation's capital acquisition fund established pursuant to
this section, and one million dollars in the Capital off-track betting
corporation's capital acquisition fund established pursuant to this
section, shall be available to such off-track betting corporation for
the purposes of expenditures necessary to accept authorized wagers; past
due statutory obligations to New York licensed or franchised racing
corporations or associations; past due contractual obligations due to
other racing associations or organizations for the costs of acquiring a
simulcast signal; past due statutory payment obligations due to the New
York state thoroughbred breeding and development fund corporation, agri-
culture and New York state horse breeding development fund, and the
Harry M. Zweig memorial fund for equine research; and past due obli-
gations due the state.
e. Notwithstanding any other provision of law or regulation to the
contrary, from April first, two thousand twenty-five to March thirty-
first, two thousand twenty-six, one million dollars in the Capital off-
track betting corporation's capital acquisition fund established pursu-
ant to this section shall be available to such off-track betting
corporation for the purposes of expenditures necessary to accept author-
ized wagers; past due statutory obligations to New York licensed or
franchised racing corporations or associations; past due contractual
obligations due to other racing associations or organizations for the
cost of acquiring a simulcast signal; past due statutory payment obli-
gations due to the New York state thoroughbred breeding and development
fund corporation, agriculture and New York state horse breeding develop-
ment fund, and the Harry M. Zweig memorial fund for equine research; and
past due obligations due the state.
f. NOTWITHSTANDING ANY OTHER PROVISION OF LAW OR REGULATION TO THE
CONTRARY, FROM APRIL FIRST, TWO THOUSAND TWENTY-SIX TO MARCH THIRTY-
FIRST, TWO THOUSAND TWENTY-SEVEN, ONE MILLION DOLLARS IN THE CAPITAL
OFF-TRACK BETTING CORPORATION'S CAPITAL ACQUISITION FUND ESTABLISHED
A. 10009--B 82
PURSUANT TO THIS SECTION, SHALL BE AVAILABLE TO SUCH OFF-TRACK BETTING
CORPORATION FOR THE PURPOSES OF EXPENDITURES NECESSARY TO ACCEPT AUTHOR-
IZED WAGERS; PAST DUE STATUTORY OBLIGATIONS TO NEW YORK LICENSED OR
FRANCHISED RACING CORPORATIONS OR ASSOCIATIONS; PAST DUE CONTRACTUAL
OBLIGATIONS DUE TO OTHER RACING ASSOCIATIONS OR ORGANIZATIONS FOR THE
COST OF ACQUIRING A SIMULCAST SIGNAL; PAST DUE STATUTORY PAYMENT OBLI-
GATIONS DUE TO THE NEW YORK STATE THOROUGHBRED BREEDING AND DEVELOPMENT
FUND CORPORATION, AGRICULTURE AND NEW YORK STATE HORSE BREEDING DEVELOP-
MENT FUND, AND THE HARRY M. ZWEIG MEMORIAL FUND FOR EQUINE RESEARCH; AND
PAST DUE OBLIGATIONS DUE THE STATE.
G. Prior to a corporation being able to utilize the funds authorized
by paragraph c, d [or], e OR F of this subdivision, the corporation must
attest that the surcharge monies from section five hundred thirty-two of
this chapter are being held separate and apart from any amounts other-
wise authorized to be retained from pari-mutuel pools and all surcharge
monies have been and will continue to be paid to the localities as
prescribed in law. Once this condition is satisfied, the corporation
must submit an expenditure plan to the gaming commission for review.
Such plan shall include the corporation's outstanding liabilities,
projected revenue for the upcoming year, a detailed explanation of how
the funds will be used, and any other information necessary to detail
such plan as determined by the commission. Upon review, the commission
shall make a determination as to whether the requirements of this para-
graph have been satisfied and notify the corporation of expenditure plan
approval. In the event the commission determines the requirements of
this paragraph have not been satisfied, the commission shall notify the
corporation of all deficiencies necessary for approval. As a condition
of such expenditure plan approval, the corporation shall provide a
report to the commission no later than the last day of the calendar year
for which the funds are requested, which shall include an accounting of
the use of such funds. At such time, the commission may cause an inde-
pendent audit to be conducted of the corporation's books to ensure that
all moneys were spent as indicated in such approved plan. The audit
shall be paid for from money in the fund established by this section. If
the audit determines that a corporation used the money authorized under
this section for a purpose other than one listed in their expenditure
plan, then the corporation shall reimburse the capital acquisition fund
for the unauthorized amount.
§ 2. This act shall take effect immediately.
PART Y
Section 1. Paragraph (a) of subdivision 1 of section 1003 of the
racing, pari-mutuel wagering and breeding law, as amended by section 1
of subpart B of part FF of chapter 59 of the laws of 2025, is amended to
read as follows:
(a) Any racing association or corporation or regional off-track
betting corporation, authorized to conduct pari-mutuel wagering under
this chapter, desiring to display the simulcast of horse races on which
pari-mutuel betting shall be permitted in the manner and subject to the
conditions provided for in this article may apply to the commission for
a license so to do. Applications for licenses shall be in such form as
may be prescribed by the commission and shall contain such information
or other material or evidence as the commission may require. No license
shall be issued by the commission authorizing the simulcast transmission
of thoroughbred races from a track located in Suffolk county. The fee
A. 10009--B 83
for such licenses shall be five hundred dollars per simulcast facility
and for account wagering licensees that do not operate either a simul-
cast facility that is open to the public within the state of New York or
a licensed racetrack within the state, twenty thousand dollars per year
payable by the licensee to the commission for deposit into the general
fund. Except as provided in this section, the commission shall not
approve any application to conduct simulcasting into individual or group
residences, homes or other areas for the purposes of or in connection
with pari-mutuel wagering. The commission may approve simulcasting into
residences, homes or other areas to be conducted jointly by one or more
regional off-track betting corporations and one or more of the follow-
ing: a franchised corporation, thoroughbred racing corporation or a
harness racing corporation or association; provided (i) the simulcasting
consists only of those races on which pari-mutuel betting is authorized
by this chapter at one or more simulcast facilities for each of the
contracting off-track betting corporations which shall include wagers
made in accordance with [section] SECTIONS one thousand fifteen, one
thousand sixteen and one thousand seventeen of this article; provided
further that the contract provisions or other simulcast arrangements for
such simulcast facility shall be no less favorable than those in effect
on January first, two thousand five; (ii) that each off-track betting
corporation having within its geographic boundaries such residences,
homes or other areas technically capable of receiving the simulcast
signal shall be a contracting party; (iii) the distribution of revenues
shall be subject to contractual agreement of the parties except that
statutory payments to non-contracting parties, if any, may not be
reduced; provided, however, that nothing herein to the contrary shall
prevent a track from televising its races on an irregular basis primari-
ly for promotional or marketing purposes as found by the commission. For
purposes of this paragraph, the provisions of section one thousand thir-
teen of this article shall not apply. Any agreement authorizing an
in-home simulcasting experiment commencing prior to May fifteenth, nine-
teen hundred ninety-five, may, and all its terms, be extended until June
thirtieth, two thousand [twenty-six] TWENTY-SEVEN; provided, however,
that any party to such agreement may elect to terminate such agreement
upon conveying written notice to all other parties of such agreement at
least forty-five days prior to the effective date of the termination,
via registered mail. Any party to an agreement receiving such notice of
an intent to terminate, may request the commission to mediate between
the parties new terms and conditions in a replacement agreement between
the parties as will permit continuation of an in-home experiment until
June thirtieth, two thousand [twenty-six] TWENTY-SEVEN; and (iv) no
in-home simulcasting in the thoroughbred special betting district shall
occur without the approval of the regional thoroughbred track.
§ 2. Subparagraph (iii) of paragraph d of subdivision 3 of section
1007 of the racing, pari-mutuel wagering and breeding law, as amended by
section 2 of subpart B of part FF of chapter 59 of the laws of 2025, is
amended to read as follows:
(iii) Of the sums retained by a receiving track located in Westchester
county on races received from a franchised corporation, for the period
commencing January first, two thousand eight and continuing through June
thirtieth, two thousand [twenty-six] TWENTY-SEVEN, the amount used
exclusively for purses to be awarded at races conducted by such receiv-
ing track shall be computed as follows: of the sums so retained, two and
one-half percent of the total pools. Such amount shall be increased or
decreased in the amount of fifty percent of the difference in total
A. 10009--B 84
commissions determined by comparing the total commissions available
after July twenty-first, nineteen hundred ninety-five to the total
commissions that would have been available to such track prior to July
twenty-first, nineteen hundred ninety-five.
§ 3. The opening paragraph of subdivision 1 of section 1014 of the
racing, pari-mutuel wagering and breeding law, as amended by section 3
of subpart B of part FF of chapter 59 of the laws of 2025, is amended to
read as follows:
The provisions of this section shall govern the simulcasting of races
conducted at thoroughbred tracks located in another state or country on
any day during which a franchised corporation is conducting a race meet-
ing in Saratoga county at Saratoga thoroughbred racetrack until June
thirtieth, two thousand [twenty-six] TWENTY-SEVEN and on any day regard-
less of whether or not a franchised corporation is conducting a race
meeting in Saratoga county at Saratoga thoroughbred racetrack after June
thirtieth, two thousand [twenty-six] TWENTY-SEVEN. On any day on which
a franchised corporation has not scheduled a racing program but a
thoroughbred racing corporation located within the state is conducting
racing, each off-track betting corporation branch office and each simul-
casting facility licensed in accordance with section one thousand seven
(that has entered into a written agreement with such facility's repre-
sentative horsemen's organization, as approved by the commission), one
thousand eight, or one thousand nine of this article shall be authorized
to accept wagers and display the live simulcast signal from thoroughbred
tracks located in another state or foreign country subject to the
following provisions:
§ 4. Subdivision 1 of section 1015 of the racing, pari-mutuel wagering
and breeding law, as amended by section 4 of subpart B of part FF of
chapter 59 of the laws of 2025, is amended to read as follows:
1. The provisions of this section shall govern the simulcasting of
races conducted at harness tracks located in another state or country
during the period July first, nineteen hundred ninety-four through June
thirtieth, two thousand [twenty-six] TWENTY-SEVEN. This section shall
supersede all inconsistent provisions of this chapter.
§ 5. The opening paragraph of subdivision 1 of section 1016 of the
racing, pari-mutuel wagering and breeding law, as amended by section 5
of subpart B of part FF of chapter 59 of the laws of 2025, is amended to
read as follows:
The provisions of this section shall govern the simulcasting of races
conducted at thoroughbred tracks located in another state or country on
any day during which a franchised corporation is not conducting a race
meeting in Saratoga county at Saratoga thoroughbred racetrack until June
thirtieth, two thousand [twenty-six] TWENTY-SEVEN. Every off-track
betting corporation branch office and every simulcasting facility
licensed in accordance with section one thousand seven that have entered
into a written agreement with such facility's representative horsemen's
organization as approved by the commission, one thousand eight or one
thousand nine of this article shall be authorized to accept wagers and
display the live full-card simulcast signal of thoroughbred tracks
(which may include quarter horse or mixed meetings provided that all
such wagering on such races shall be construed to be thoroughbred races)
located in another state or foreign country, subject to the following
provisions; provided, however, no such written agreement shall be
required of a franchised corporation licensed in accordance with section
one thousand seven of this article:
A. 10009--B 85
§ 6. The opening paragraph of section 1018 of the racing, pari-mutuel
wagering and breeding law, as amended by section 6 of subpart B of part
FF of chapter 59 of the laws of 2025, is amended to read as follows:
Notwithstanding any other provision of this chapter, for the period
COMMENCING July twenty-fifth, two thousand one through September eighth,
two thousand [twenty-five] TWENTY-SIX, when a franchised corporation is
conducting a race meeting within the state at Saratoga Race Course,
every off-track betting corporation branch office and every simulcasting
facility licensed in accordance with section one thousand seven (that
has entered into a written agreement with such facility's representative
horsemen's organization as approved by the commission), one thousand
eight or one thousand nine of this article shall be authorized to accept
wagers and display the live simulcast signal from thoroughbred tracks
located in another state, provided that such facility shall accept
wagers on races run at all in-state thoroughbred tracks which are
conducting racing programs subject to the following provisions;
provided, however, no such written agreement shall be required of a
franchised corporation licensed in accordance with section one thousand
seven of this article.
§ 7. Section 54 of chapter 346 of the laws of 1990, amending the
racing, pari-mutuel wagering and breeding law and other laws relating to
simulcasting and the imposition of certain taxes, as amended by section
8 of subpart B of part FF of chapter 59 of the laws of 2025, is amended
to read as follows:
§ 54. This act shall take effect immediately; provided, however,
sections three through twelve of this act shall take effect [on] January
1, 1991, and section 1013 of the racing, pari-mutuel wagering and breed-
ing law, as added by section thirty-eight of this act, shall expire and
be deemed repealed on July 1, [2026] 2027; and section eighteen of this
act shall take effect [on] July 1, 2008 and sections fifty-one and
fifty-two of this act shall take effect as of the same date as chapter
772 of the laws of 1989 took effect.
§ 8. Paragraph (a) of subdivision 1 of section 238 of the racing,
pari-mutuel wagering and breeding law, as amended by section 9 of
subpart B of part FF of chapter 59 of the laws of 2025, is amended to
read as follows:
(a) The franchised corporation authorized under this chapter to
conduct pari-mutuel betting at a race meeting or races run thereat shall
distribute all sums deposited in any pari-mutuel pool to the holders of
winning tickets therein, provided such tickets are presented for payment
before April first of the year following the year of their purchase,
less an amount that shall be established and retained by such franchised
corporation of between twelve to seventeen percent of the total deposits
in pools resulting from on-track regular bets, and fourteen to twenty-
one percent of the total deposits in pools resulting from on-track
multiple bets and fifteen to twenty-five percent of the total deposits
in pools resulting from on-track exotic bets and fifteen to thirty-six
percent of the total deposits in pools resulting from on-track super
exotic bets[, plus the breaks]. The retention rate to be established is
subject to the prior approval of the commission. Such rate may not be
changed more than once per calendar quarter to be effective on the first
day of the calendar quarter. "Exotic bets" and "multiple bets" shall
have the meanings set forth in section five hundred nineteen of this
chapter. "Super exotic bets" shall have the meaning set forth in section
three hundred one of this chapter. For purposes of this section, a "pick
six bet" shall mean a single bet or wager on the outcomes of six races.
A. 10009--B 86
[The breaks are hereby defined as the odd cents over any multiple of
five for payoffs greater than one dollar five cents but less than five
dollars, over any multiple of ten for payoffs greater than five dollars
but less than twenty-five dollars, over any multiple of twenty-five for
payoffs greater than twenty-five dollars but less than two hundred fifty
dollars, or over any multiple of fifty for payoffs over two hundred
fifty dollars.] Out of the amount so retained there shall be paid by
such franchised corporation to the commissioner of taxation and finance,
as a reasonable tax by the state for the privilege of conducting pari-
mutuel betting on the races run at the race meetings held by such fran-
chised corporation, the following percentages of the total pool for
regular and multiple bets five percent of regular bets and four percent
of multiple bets plus twenty percent of the breaks; for exotic wagers
seven and one-half percent plus twenty percent of the breaks, and for
super exotic bets seven and one-half percent plus fifty percent of the
breaks.
For the period April first, two thousand one through December thirty-
first, two thousand [twenty-six] TWENTY-SEVEN, such tax on all wagers
shall be one and six-tenths percent, plus, in each such period, twenty
percent of the breaks. Payment to the New York state thoroughbred breed-
ing and development fund by such franchised corporation shall be one-
half of one percent of total daily on-track pari-mutuel pools resulting
from regular, multiple and exotic bets and three percent of super exotic
bets and for the period COMMENCING April first, two thousand one through
December thirty-first, two thousand [twenty-six] TWENTY-SEVEN, such
payment shall be seven-tenths of one percent of regular, multiple and
exotic pools.
§ 9. This act shall take effect immediately.
PART Z
Section 1. Subdivision 1 of section 220 of the racing, pari-mutuel
wagering and breeding law, as amended by section 2 of part NN of chapter
59 of the laws of 2025, is amended to read as follows:
1. For the purpose of maintaining a proper control over race meetings
conducted pursuant to sections two hundred five and two hundred six of
this article, the commission shall license owners, which term shall be
deemed to include part-owners and lessees, trainers, assistant trainers
and jockeys, jockey agents, stable employees, non-publicly appointed
members of the board of a franchised corporation, and such other persons
as the commission may by rule prescribe at running races and at steeple-
chases, provided, however, that no such license shall be required for
seasonal employees hired solely to work for no longer than six weeks
during the summer meet at Saratoga racetrack, and any such other times
as race dates historically assigned to Belmont Park are conducted at the
Saratoga racetrack in two thousand twenty-four [and], two thousand twen-
ty-five AND TWO THOUSAND TWENTY-SIX as approved in writing by the
commission. In the event that a proposed licensee is other than a
natural person, the commission shall require by regulation disclosure of
the names and addresses of all owners of an interest in such entity. The
commission may retain, employ or appoint such officers, employees and
agents, as it may deem necessary to receive, examine and make recommen-
dations, for the consideration of the commission, in respect of applica-
tions for such licenses; prescribe their duties in connection therewith,
and fix their compensation therefor within the limitations prescribed by
law. Each applicant for a license shall pay to the commission an annual
A. 10009--B 87
license fee as follows: owner's license, if a renewal, fifty dollars,
and if an original application, one hundred dollars; trainer's license,
thirty dollars; assistant trainer's license, thirty dollars; jockey's
license, fifty dollars; jockey agent's license, twenty dollars; and
stable employee's license, five dollars. Each applicant may apply for a
two-year or three-year license by payment to the commission of the
appropriate multiple of the annual fee. The commission may by rule fix
the license fees to be paid by other persons required to be licensed by
the rules of the commission, not to exceed thirty dollars per category.
The application for the license shall be in writing in such form as the
commission may prescribe, and contain such information as the commission
may require. The commission shall henceforth cause all applicants for
licenses to be photographed and fingerprinted and may issue identifica-
tion cards to licensees. Such fingerprints shall be submitted to the
division of criminal justice services for a state criminal history
record check, as defined in subdivision one of section three thousand
thirty-five of the education law, and may be submitted to the federal
bureau of investigation for a national criminal history record check. A
fee equal to the actual cost of issuance shall be charged for the
initial issuance of such identification cards. Each such license unless
revoked for cause shall be for the period of no more than one, two or
three years, determined by rule of the commission, expiring on the
applicant's birth date. Licenses of non-publicly appointed members of
the board of a franchised corporation shall be issued without fee and
remain in effect for the duration of their board service. Licenses
current on the effective date of this provision shall not be reduced in
duration by this provision. An applicant who applies for a license that,
if issued, would take effect less than six months prior to the appli-
cant's birth date may, by payment of a fifty percent higher fee, receive
a license which shall not expire until the applicant's second succeeding
birth date. All receipts of the commission derived from the operation of
this section shall be paid by it into the state treasury on or before
the tenth day of each month. All officials connected with the actual
conduct of racing shall be subject to approval by the commission.
§ 2. This act shall take effect immediately; provided, however, that
the amendments to subdivision one of section 220 of the racing, pari-mu-
tuel wagering and breeding law made by section one of this act shall not
affect the expiration of such subdivision and shall expire and be deemed
repealed therewith.
PART AA
Section 1. Clause (vii) of subparagraph (B) of paragraph 1 of
subsection (a) of section 601 of the tax law, as amended by section 1 of
part B of chapter 59 of the laws of 2025, is amended as follows:
(vii) For taxable years beginning after two thousand twenty-five and
before two thousand [twenty-seven] THIRTY-THREE the following rates
shall apply:
If the New York taxable income is: The tax is:
Not over $17,150 [3.90%] 3.75% of the New York taxable
income
Over $17,150 but not over $23,600 [$669] $643 plus [4.40%]
4% of excess over
$17,150
Over $23,600 but not over $27,900 [$953] $901 plus [5.15%]
4.25% of excess over
A. 10009--B 88
$23,600
Over $27,900 but not over $161,550 [$1,174] $1,084 plus
[5.40%] 4.50% of excess over
$27,900
Over $161,550 but not over $323,200 [$8,391] $7,098 plus
[5.90%] 5% of excess over
$161,550
Over $323,200 but not over [$17,928] $15,181 plus 6.85% of
$2,155,350 excess over $323,200
Over $2,155,350 but not over [$143,430] $140,683 plus 9.65% of
$5,000,000 excess over $2,155,350
Over $5,000,000 but not over [$417,939] $415,192 plus [10.30%]
[$25,000,000] $10,000,000 10.50% of excess over
$5,000,000
OVER $10,000,000 BUT NOT $940,192 PLUS 10.75% OF EXCESS
OVER $25,000,000 OVER $10,000,000
Over $25,000,000 BUT NOT [$2,477,939] $2,552,692 plus
OVER $100,000,000 [10.90%] 11.75% of
excess over $25,000,000
OVER $100,000,000 $11,365,192 PLUS 12% OF EXCESS
OVER $10,000,000
§ 2. Clause (viii) of subparagraph (B) of paragraph 1 of subsection
(a) of section 601 of the tax law is REPEALED and clause (ix) of such
subparagraph, as added by section 2 of part B of chapter 59 of the laws
of 2025, is renumbered clause (viii) and amended to read as follows:
(viii) For taxable years beginning after two thousand thirty-two the
following rates shall apply:
If the New York taxable income is: The tax is:
Not over $17,150 [3.80%] 3.75% of the New York
taxable income
Over $17,150 but not over $23,600 [$652] $643 plus [4.30%]
4% of excess over $17,150
Over $23,600 but not over $27,900 [$929] $901 plus [5.05%]
4.25% of excess over $23,600
Over $27,900 but not over $161,550 [$1,146] $1,084 plus
[5.30%] 4.50% of excess over $27,900
Over $161,550 but not over $323,200 [$8,229] $7,098 plus
[5.80%] 5% of excess over
$161,550
Over $323,200 but not over [$17,605] $15,181 plus 6.85% of
$2,155,350 excess over $323,200
Over $2,155,350 [$143,107] $140,683 plus 8.82% of
excess over $2,155,350
§ 3. Clause (vii) of subparagraph (B) of paragraph 1 of subsection (b)
of section 601 of the tax law, as amended by section 3 of part B of
chapter 59 of the laws of 2025, is amended to read as follows:
(vii) For taxable years beginning after two thousand twenty-five and
before two thousand [twenty-seven] THIRTY-THREE the following rates
shall apply:
If the New York taxable income is: The tax is:
Not over $12,800 [3.90%] 3.75% of the New York
taxable income
Over $12,800 but not over [$499] $480 plus [4.40%]
$17,650 4% of excess over $12,800
A. 10009--B 89
Over $17,650 but not over [$712] $674 plus [5.15%]
$20,900 4.25% of excess over $17,650
Over $20,900 but not over [$879] $812 plus [5.40%]
$107,650 4.50% of excess over $20,900
Over $107,650 but not over [$5,564] $4,716 plus [5.90%]
$269,300 5% of excess over $107,650
Over $269,300 but not over [$15,101] $12,798 plus 6.85%
$1,616,450 of excess over $269,300
Over $1,616,450 but not over [$107,381] $105,078 plus 9.65%
$5,000,000 of excess over $1,616,450
Over $5,000,000 but not over [$433,894] $431,591 plus
[$25,000,000] $10,000,000 [10.30%] 10.50% of excess
over $5,000,000
OVER $10,000,000 BUT NOT OVER $956,591 PLUS 10.75% OF EXCESS
$25,000,000 OVER $10,000,000
Over $25,000,000 BUT NOT [$2,493,894] $2,569,091
OVER $100,000,000 plus [10.90%] 11.75% of
excess over $25,000,000
OVER $100,000,000 $11,381,591 PLUS 12% OF EXCESS
OVER $10,000,000
§ 4. Clause (viii) of subparagraph (B) of paragraph 1 of subsection
(b) of section 601 of the tax law is REPEALED and clause (ix) of such
subparagraph, as added by section 4 of part B of chapter 59 of the laws
of 2025, is renumbered clause (viii) and amended to read as follows:
(viii) For taxable years beginning after two thousand thirty-two the
following rates shall apply:
If the New York taxable income is: The tax is:
Not over $12,800 [3.80%] 3.75% of the New York
taxable income
Over $12,800 but not over [$486] $480 plus [4.30%]
$17,650 4% of excess over $12,800
Over $17,650 but not over [$695] $674 plus [5.05%]
$20,900 4.25% of excess over $17,650
Over $20,900 but not over [$859] $812 plus [5.30%]
$107,650 4.50% of excess over $20,900
Over $107,650 but not over [$5,457] $4,716 plus [5.80%]
$269,300 5% of excess over $107,650
Over $269,300 but not over [$14,833] $12,798 plus
$1,616,450 6.85% of excess over $269,300
Over $1,616,450 [$107,113] $105,078 plus 8.82%
of excess over $1,616,450
§ 5. Clause (vii) of subparagraph (B) of paragraph 1 of subsection (c)
of section 601 of the tax law, as amended by section 5 of part B of
chapter 59 of the laws of 2025, is amended to read as follows:
(vii) For taxable years beginning after two thousand twenty-five and
before two thousand [twenty-seven] THIRTY-THREE the following rates
shall apply:
If the New York taxable income is: The tax is:
Not over $8,500 [3.90%] 3.75% of the New York
taxable income
Over $8,500 but not over $11,700 [$332] $319 plus [4.40%]
4% of excess over $8,500
Over $11,700 but not over $13,900 [$473] $447 plus [5.15%]
A. 10009--B 90
4.25% of excess over $11,700
Over $13,900 but not over $80,650 [$586] $540 plus [5.40%]
4.50% of excess over $13,900
Over $80,650 but not over $215,400 [$4,191] $3,544 plus [5.90%]
5% of excess over $80,650
Over $215,400 but not over [$12,141] $10,282 plus 6.85%
$1,077,550 of excess over $215,400
Over $1,077,550 but not over [$71,198] $69,339 plus 9.65%
$5,000,000 of excess over $1,077,550
Over $5,000,000 but not over [$449,714] $447,855 plus [10.30%]
[$25,000,000] $10,000,000 10.50% of excess over $5,000,000
OVER $10,000,000 BUT $972,855 PLUS 10.75% OF EXCESS
NOT OVER $25,000,000 OVER $10,000,000
Over $25,000,000 BUT [$2,509,714] $2,585,355 plus
NOT OVER $100,000,000 [10.90%] 11.75% of excess
over $25,000,000
OVER $100,000,000 $11,397,855 PLUS 12% OF EXCESS
OVER $100,000,000
§ 6. Clause (viii) of subparagraph (B) of paragraph 1 of subsection
(c) of section 601 of the tax law is REPEALED and clause (ix) of such
subparagraph, as added by section 6 of part B of chapter 59 of the laws
of 2025, is renumbered clause (viii) and amended to read as follows:
(viii) For taxable years beginning after two thousand thirty-two the
following rates shall apply:
If the New York taxable income is: The tax is:
Not over $8,500 [3.80%] 3.75% of the New York
taxable income
Over $8,500 but not over $11,700 [$323] $319 plus [4.30%]
4% of excess over $8,500
Over $11,700 but not over $13,900 [$461] $447 plus [5.05%]
4.25% of excess over $11,700
Over $13,900 but not over $80,650 [$572] $540 plus [5.30%]
4.50% of excess over $13,900
Over $80,650 but not over $215,400 [$4,110] $3,544 plus [5.80%]
5% of excess over $80,650
Over $215,400 but not over [$11,926] $10,282 plus 6.85% of
$1,077,550 excess over $215,400
Over $1,077,550 [$70,983] $69,339 plus 8.82% of
excess over $1,077,550
§ 7. Subsection (d-6) of section 601 of the tax law is REPEALED and
subsection (d-7) is relettered subsection (d-6).
§ 8. Subsections (d-5) and (d-6) of Section 601 of the tax law, as
added by section 8 of part B of chapter 59 of the laws of 2025, and
subsection (d-6) as relettered by section seven of this act, are amended
to read as follows:
(d-5) Alternative tax table benefit recapture. Notwithstanding the
provisions of subsection (d), (d-1), (d-2), (d-3), (d-4)[,] OR (d-6) [or
(d-7)] of this section, for taxable years beginning on or after two
thousand twenty-six and before two thousand [twenty-seven] THIRTY-THREE,
there is hereby imposed a supplemental tax in addition to the tax
imposed under subsections (a), (b) and (c) of this section for the
purpose of recapturing the benefit of the tax tables contained in such
subsections. During these taxable years, any reference in this chapter
A. 10009--B 91
to subsection (d), (d-1), (d-2), (d-3), (d-4)[,] OR (d-6) [or (d-7)] of
this section shall be read as a reference to this subsection.
(1) For resident married individuals filing joint returns and resident
surviving spouses:
(A) If New York adjusted gross income is greater than $107,650, but
not over $25,000,000:
(i) the recapture base and incremental benefit shall be determined by
New York taxable income as follows:
Greater than Not over Recapture Base Incremental Benefit
$27,900 $161,550 $0 [$333] $172
$161,550 $323,200 [$333] $172 $807
$323,200 $2,155,350 [$1,140] $979
[$3,071] $5,979
$2,155,350 $5,000,000 [$4,211] $6,959 $60,350
$5,000,000 [$25,000,000] $10,000,000
[$64,561] $67,308 [$32,500] $42,500
$10,000,000 $25,000,000 $109,808 $25,000
(ii) the applicable amount shall be determined by New York taxable
income as follows:
Greater than Not over Applicable Amount
$27,900 $161,550 New York adjusted gross income minus $107,650
$161,550 $323,200 New York adjusted gross income minus $161,550
$323,200 $2,155,350 New York adjusted gross income minus $323,200
$2,155,350 $5,000,000 New York adjusted gross income minus $2,155,350
$5,000,000 [$25,000,000]New York adjusted gross income minus $5,000,000
$10,000,000
$10,000,000 $25,000,000 NEW YORK ADJUSTED GROSS INCOME MINUS
$10,000,000
(iii) the phase-in fraction shall be a fraction, the numerator of
which shall be the lesser of fifty thousand dollars or the applicable
amount and the denominator of which shall be fifty thousand dollars; and
(iv) the supplemental tax due shall equal the sum of the recapture
base and the product of (i) the incremental benefit and (ii) the phase-
in fraction. Provided, however, that if the New York taxable income of
the taxpayer is less than twenty-seven thousand nine hundred dollars,
the supplemental tax shall equal the difference between the product of
[5.40] 4.50 percent and New York taxable income and the tax table compu-
tation on the New York taxable income set forth in paragraph one of
subsection (a) of this section, multiplied by a fraction, the numerator
of which is the lesser of fifty thousand dollars or New York adjusted
gross income minus one hundred seven thousand six hundred fifty dollars,
and the denominator of which is fifty thousand dollars.
(B) If New York adjusted gross income is greater than twenty-five
million dollars BUT LESS THAN OR EQUAL TO ONE HUNDRED MILLION DOLLARS,
the supplemental tax due shall equal the difference between the product
of [10.90] 11.75 percent and New York taxable income and the tax table
computation on the New York taxable income set forth in paragraph one of
subsection (a) of this section.
(C) IF NEW YORK ADJUSTED GROSS INCOME IS GREATER THAN ONE HUNDRED
MILLION DOLLARS, THE SUPPLEMENTAL TAX DUE SHALL EQUAL THE DIFFERENCE
BETWEEN THE PRODUCT OF TWELVE PERCENT AND NEW YORK TAXABLE INCOME AND
THE TAX TABLE COMPUTATION ON THE NEW YORK TAXABLE INCOME SET FORTH IN
PARAGRAPH ONE OF SUBSECTION (A) OF THIS SECTION.
(2) For resident heads of households:
(A) If New York adjusted gross income is greater than $107,650, but
not over $25,000,000:
A. 10009--B 92
(i) the recapture base and incremental benefit shall be determined by
New York taxable income as follows:
Greater than Not over Recapture Base Incremental Benefit
$107,650 $269,300 $0 [$787] $667
$269,300 $1,616,450 [$787] $667 [$2,559] $4,982
$1,616,450 $5,000,000 [$3,346] $5,649 $45,260
$5,000,000 [$25,000,000] [$48,606] [$32,500]
$10,000,000 $50,909 $42,500
$10,000,000 $25,000,000 $93,409 $25,000
(ii) the applicable amount shall be determined by New York taxable
income as follows:
Greater than Not over Applicable Amount
$107,650 $269,300 New York adjusted gross income minus $107,650
$269,300 $1,616,450 New York adjusted gross income minus $269,300
$1,616,450 $5,000,000 New York adjusted gross income minus $1,616,450
$5,000,000 [$25,000,000]New York adjusted gross income minus $5,000,000
$10,000,000
$10,000,000 $25,000,000 NEW YORK ADJUSTED GROSS INCOME MINUS
$10,000,000
(iii) the phase-in fraction shall be a fraction, the numerator of
which shall be the lesser of fifty thousand dollars or the applicable
amount and the denominator of which shall be fifty thousand dollars; and
(iv) the supplemental tax due shall equal the sum of the recapture
base and the product of (i) the incremental benefit and (ii) the phase-
in fraction. Provided, however, that if the New York taxable income of
the taxpayer is less than one hundred seven thousand six hundred fifty
dollars, the supplemental tax shall equal the difference between the
product of [5.90] 5 percent and New York taxable income and the tax
table computation on the New York taxable income set forth in paragraph
one of subsection (b) of this section, multiplied by a fraction, the
numerator of which is the lesser of fifty thousand dollars or New York
adjusted gross income minus one hundred seven thousand six hundred fifty
dollars, and the denominator of which is fifty thousand dollars.
(B) If New York adjusted gross income is greater than twenty-five
million dollars BUT LESS THAN OR EQUAL TO ONE HUNDRED MILLION DOLLARS,
the supplemental tax due shall equal the difference between the product
of [10.90] 11.75 percent and New York taxable income and the tax table
computation on the New York taxable income set forth in paragraph one of
subsection (b) of this section.
(C) IF NEW YORK ADJUSTED GROSS INCOME IS GREATER THAN ONE HUNDRED
MILLION DOLLARS, THE SUPPLEMENTAL TAX DUE SHALL EQUAL THE DIFFERENCE
BETWEEN THE PRODUCT OF TWELVE PERCENT AND NEW YORK TAXABLE INCOME AND
THE TAX TABLE COMPUTATION ON THE NEW YORK TAXABLE INCOME SET FORTH IN
PARAGRAPH ONE OF SUBSECTION (B) OF THIS SECTION.
(3) For resident unmarried individuals, resident married individuals
filing separate returns and resident estates and trusts:
(A) If New York adjusted gross income is greater than $107,650, but
not over $25,000,000:
(i) the recapture base and incremental benefit shall be determined by
New York taxable income as follows:
Greater than Not over Recapture Base Incremental Benefit
$80,650 $215,400 $0 [$567] $488
$215,400 $1,077,550 [$567] $488 [$2,047] $3,985
$1,077,550 $5,000,000 [$2,614] $4,473 $30,172
$5,000,000 [$25,000,000] [$32,786] [$32,500]
A. 10009--B 93
$10,000,000 $34,645 $42,500
$10,000,000 $25,000,000 $77,145 $25,000
(ii) the applicable amount shall be determined by New York taxable
income as follows:
Greater than Not over Applicable Amount
$80,650 $215,400 New York adjusted gross income minus $107,650
$215,400 $1,077,550 New York adjusted gross income minus $215,400
$1,077,550 $5,000,000 New York adjusted gross income minus $1,077,550
$5,000,000 [$25,000,000]New York adjusted gross income minus $5,000,000
$10,000,000
$10,000,000 $25,000,000 NEW YORK ADJUSTED GROSS INCOME MINUS
$10,000,000
(iii) the phase-in fraction shall be a fraction, the numerator of
which shall be the lesser of fifty thousand dollars or the applicable
amount and the denominator of which shall be fifty thousand dollars; and
(iv) the supplemental tax due shall equal the sum of the recapture
base and the product of (i) the incremental benefit and (ii) the phase-
in fraction. Provided, however, that if the New York taxable income of
the taxpayer is less than eighty thousand six hundred fifty dollars, the
supplemental tax shall equal the difference between the product of
[5.90] 5 percent and New York taxable income and the tax table computa-
tion on the New York taxable income set forth in paragraph one of
subsection (c) of this section, multiplied by a fraction, the numerator
of which is the lesser of fifty thousand dollars or New York adjusted
gross income minus one hundred seven thousand six hundred fifty dollars,
and the denominator of which is fifty thousand dollars.
(B) If New York adjusted gross income is greater than twenty-five
million dollars BUT LESS THAN OR EQUAL TO ONE HUNDRED MILLION DOLLARS,
the supplemental tax due shall equal the difference between the product
of [10.90] 11.75 percent and New York taxable income and the tax table
computation on the New York taxable income set forth in paragraph one of
subsection (c) of this section.
(C) IF NEW YORK ADJUSTED GROSS INCOME IS GREATER THAN ONE HUNDRED
MILLION DOLLARS, THE SUPPLEMENTAL TAX DUE SHALL EQUAL THE DIFFERENCE
BETWEEN THE PRODUCT OF TWELVE PERCENT AND NEW YORK TAXABLE INCOME AND
THE TAX TABLE COMPUTATION ON THE NEW YORK TAXABLE INCOME SET FORTH IN
PARAGRAPH ONE OF SUBSECTION (C) OF THIS SECTION.
(d-6) Alternative tax table benefit recapture. Notwithstanding the
provisions of subsection (d), (d-1), (d-2), (d-3), (d-4)[,] OR (d-5) [or
(d-6)] of this section, for taxable years beginning on or after two
thousand thirty-three, there is hereby imposed a supplemental tax in
addition to the tax imposed under subsections (a), (b) and (c) of this
section for the purpose of recapturing the benefit of the tax tables
contained in such subsections. During these taxable years, any reference
in this chapter to subsection (d), (d-1), (d-2), (d-3), (d-4)[,] OR
(d-5) [or (d-6)] of this section shall be read as a reference to this
subsection.
(1) For resident married individuals filing joint returns and resident
surviving spouses:
(A) If New York adjusted gross income is greater than $107,650:
(i) the recapture base and incremental benefit shall be determined by
New York taxable income as follows:
Greater than Not over Recapture Base Incremental Benefit
$27,900 $161,550 $0 [$333] $172
$161,550 $323,200 [$333] $172 $808
$323,200 $2,155,350 [$1,141] $979 [$3,393] $5,979
A. 10009--B 94
$2,155,350 [$4,534] $6,959 $42,461
(ii) the applicable amount shall be determined by New York taxable
income as follows:
Greater than Not over Applicable Amount
$27,900 $161,550 New York adjusted gross income minus $107,650
$161,550 $323,200 New York adjusted gross income minus $161,550
$323,200 $2,155,350 New York adjusted gross income minus $323,200
$2,155,350 New York adjusted gross income minus $2,155,350
(iii) the phase-in fraction shall be a fraction, the numerator of
which shall be the lesser of fifty thousand dollars or the applicable
amount and the denominator of which shall be fifty thousand dollars; and
(iv) the supplemental tax due shall equal the sum of the recapture
base and the product of (i) the incremental benefit and (ii) the phase-
in fraction. Provided, however, that if the New York taxable income of
the taxpayer is less than twenty-seven thousand nine hundred dollars,
the supplemental tax shall equal the difference between the product of
[5.30] 4.50 percent and New York taxable income and the tax table compu-
tation on the New York taxable income set forth in paragraph one of
subsection (a) of this section, multiplied by a fraction, the numerator
of which is the lesser of fifty thousand dollars or New York adjusted
gross income minus one hundred seven thousand six hundred fifty dollars,
and the denominator of which is fifty thousand dollars.
(2) For resident heads of households:
(A) If New York adjusted gross income is greater than $107,650:
(i) the recapture base and incremental benefit shall be determined by
New York taxable income as follows:
Greater than Not over Recapture Base Incremental Benefit
$107,650 $269,300 $0 [$787] $667
$269,300 $1,616,450 [$787] $667 [$2,827] $4,982
$1,616,450 [$3,614] $5,649 $31,844
(ii) the applicable amount shall be determined by New York taxable
income as follows:
Greater than Not over Applicable Amount
$107,650 $269,300 New York adjusted gross income minus $107,650
$269,300 $1,616,450 New York adjusted gross income minus $269,300
$1,616,450 New York adjusted gross income minus $1,616,450
(iii) the phase-in fraction shall be a fraction, the numerator of
which shall be the lesser of fifty thousand dollars or the applicable
amount and the denominator of which shall be fifty thousand dollars; and
(iv) the supplemental tax due shall equal the sum of the recapture
base and the product of (i) the incremental benefit and (ii) the phase-
in fraction. Provided, however, that if the New York taxable income of
the taxpayer is less than one hundred seven thousand six hundred fifty
dollars, the supplemental tax shall equal the difference between the
product of [5.80] 5 percent and New York taxable income and the tax
table computation on the New York taxable income set forth in paragraph
one of subsection (b) of this section, multiplied by a fraction, the
numerator of which is the lesser of fifty thousand dollars or New York
adjusted gross income minus one hundred seven thousand six hundred fifty
dollars, and the denominator of which is fifty thousand dollars.
(3) For resident unmarried individuals, resident married individuals
filing separate returns and resident estates and trusts:
(A) If New York adjusted gross income is greater than $107,650:
(i) the recapture base and incremental benefit shall be determined by
New York taxable income as follows:
A. 10009--B 95
Greater than Not over Recapture Base Incremental Benefit
$80,650 $215,400 $0 [$568] $488
$215,400 $1,077,550 [$568] $488 [$2,261] $3,985
$1,077,550 [$2,829] $4,473 $21,228
(ii) the applicable amount shall be determined by New York taxable
income as follows:
Greater than Not over Applicable Amount
$80,650 $215,400 New York adjusted gross income minus $107,650
$215,400 $1,077,550 New York adjusted gross income minus $215,400
$1,077,550 New York adjusted gross income minus $1,077,550
(iii) the phase-in fraction shall be a fraction, the numerator of
which shall be the lesser of fifty thousand dollars or the applicable
amount and the denominator of which shall be fifty thousand dollars; and
(iv) the supplemental tax due shall equal the sum of the recapture
base and the product of (i) the incremental benefit and (ii) the phase-
in fraction. Provided, however, that if the New York taxable income of
the taxpayer is less than eighty thousand six hundred fifty dollars, the
supplemental tax shall equal the difference between the product of
[5.80] 5 percent and New York taxable income and the tax table computa-
tion on the New York taxable income set forth in paragraph one of
subsection (c) of this section, multiplied by a fraction, the numerator
of which is the lesser of fifty thousand dollars or New York adjusted
gross income minus one hundred seven thousand six hundred fifty dollars,
and the denominator of which is fifty thousand dollars.
§ 9. This act shall take effect immediately.
PART BB
Section 1. Short title. This act shall be known and may be cited as
the "protecting our wallets energy rebate (POWER) check program".
§ 2. Legislative intent. In an effort to provide relief to the rising
cost of utility bills, this act will provide direct financial assistance
to residential utility ratepayers in the form of a rebate check to miti-
gate increased energy costs and promote affordability.
§ 3. Section 606 of the tax law is amended by adding a new subsection
(uuu) to read as follows:
(UUU) PROTECTING OUR WALLETS ENERGY REBATE (POWER) CREDIT. (1) DEFI-
NITIONS. FOR THE PURPOSE OF THIS SUBSECTION:
(A) "DEPARTMENT" MEANS THE NEW YORK STATE DEPARTMENT OF TAXATION AND
FINANCE.
(B) "COMMISSION" MEANS THE NEW YORK STATE PUBLIC SERVICE COMMISSION.
(C) "COMMISSIONER" MEANS THE NEW YORK STATE COMMISSIONER OF THE
DEPARTMENT OF TAXATION AND FINANCE.
(D) "ELECTRIC CORPORATION" SHALL HAVE THE SAME MEANING AS SUCH TERM IS
DEFINED IN SECTION TWO OF THE PUBLIC SERVICE LAW.
(E) "COMBINATION GAS AND ELECTRIC CORPORATION" SHALL HAVE THE SAME
MEANING AS SUCH TERM IS DEFINED IN SECTION TWO OF THE PUBLIC SERVICE
LAW.
(F) "MUNICIPALITY" SHALL HAVE THE SAME MEANING AS SUCH TERM IS DEFINED
IN SECTION TWO OF THE PUBLIC SERVICE LAW.
(G) "RESIDENTIAL UTILITY RATEPAYER" MEANS A NATURAL PERSON WHO WAS A
FULL-YEAR RESIDENT IN THE STATE OF NEW YORK IN TAX YEAR TWO THOUSAND
TWENTY-FOUR, AS DETERMINED BY THE DEPARTMENT, AND WHO IS RECEIVING RESI-
DENTIAL ELECTRIC SERVICE, AS OF JANUARY FIRST, TWO THOUSAND TWENTY-SIX,
FROM AN ELECTRIC CORPORATION, COMBINATION GAS AND ELECTRIC CORPORATION,
MUNICIPALITY, OR FROM THE LONG ISLAND POWER AUTHORITY OR ITS SERVICE
A. 10009--B 96
PROVIDER; AND WHO SHALL HAVE HAD NEW YORK ADJUSTED GROSS INCOME OF THREE
HUNDRED THOUSAND DOLLARS OR LESS IN TAX YEAR TWO THOUSAND TWENTY-FOUR IF
THEY FILED A NEW YORK STATE RESIDENT INCOME TAX RETURN, REGARDLESS OF
FILING STATUS.
(H) "TAXPAYER" SHALL MEAN RESIDENTIAL UTILITY RATEPAYER, FOR PURPOSES
OF THIS SUBSECTION ONLY.
(2) A TAXPAYER WHO MEETS THE ELIGIBILITY STANDARDS IN PARAGRAPH ONE OF
THIS SUBSECTION SHALL BE ALLOWED A CREDIT AGAINST THE TAXES IMPOSED BY
THIS ARTICLE IN THE AMOUNT SPECIFIED IN PARAGRAPH THREE OF THIS
SUBSECTION FOR TAX YEAR TWO THOUSAND TWENTY-SIX. NOTWITHSTANDING ANY
OTHER PROVISION OF LAW, RULE OR REGULATION TO THE CONTRARY, THE DEPART-
MENT AND THE DEPARTMENT OF PUBLIC SERVICE SHALL BE REQUIRED TO WORK IN
CONJUNCTION TO DEVELOP AND ADMINISTER THIS CREDIT, WHICH SHALL BE CALLED
THE "PROTECTING OUR WALLETS ENERGY REBATE" CREDIT PROGRAM. PROVIDED,
HOWEVER, THE DEPARTMENT SHALL ULTIMATELY BE RESPONSIBLE FOR ISSUING
CREDIT PURSUANT TO THIS SUBSECTION, WITH DIRECT CONSULTATION FROM THE
DEPARTMENT OF PUBLIC SERVICE AND THE COMMISSION ON ELIGIBILITY AND OTHER
STANDARDS. PROVIDED, FURTHER, THE DEPARTMENT, THE DEPARTMENT OF PUBLIC
SERVICE, AND THE COMMISSION, SHALL HAVE THE AUTHORITY TO PROMULGATE ANY
RULES AND REGULATIONS TO EFFECTUATE THE PURPOSES OF THIS SUBSECTION.
(3) (A) FOR TAXPAYERS WHO MEET THE ELIGIBILITY STANDARDS IN PARAGRAPH
ONE OF THIS SUBSECTION WHO FILED A NEW YORK STATE RESIDENT INCOME TAX
RETURN, REGARDLESS OF FILING STATUS WITH NEW YORK ADJUSTED GROSS INCOME
OF GREATER THAN ONE HUNDRED FIFTY THOUSAND DOLLARS BUT NO GREATER THAN
THREE HUNDRED THOUSAND DOLLARS IN TAX YEAR TWO THOUSAND TWENTY-FOUR, THE
CREDIT AMOUNT SHALL BE THREE HUNDRED DOLLARS.
(B) FOR TAXPAYERS WHO MEET THE ELIGIBILITY STANDARDS IN PARAGRAPH ONE
OF THIS SUBSECTION WHO FILED A NEW YORK STATE RESIDENT INCOME TAX
RETURN, REGARDLESS OF FILING STATUS, WITH NEW YORK ADJUSTED GROSS INCOME
OF NO GREATER THAN ONE HUNDRED FIFTY THOUSAND DOLLARS, THE CREDIT AMOUNT
SHALL BE FIVE HUNDRED DOLLARS. PROVIDED, HOWEVER, UNDER NO CIRCUMSTANCE
SHALL AN ELIGIBLE TAXPAYER RECEIVE MORE THAN ONE CREDIT UNDER THIS
SUBSECTION.
(4) THE AMOUNT OF CREDIT SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO
BE CREDITED OR REFUNDED IN ACCORDANCE WITH THE PROVISIONS OF SECTION SIX
HUNDRED EIGHTY-SIX OF THIS ARTICLE, PROVIDED, HOWEVER, THAT NO INTEREST
SHALL BE PAID THEREON. THE COMMISSIONER SHALL DETERMINE THE TAXPAYER'S
ELIGIBILITY FOR THIS CREDIT, PURSUANT TO THE PROVISIONS OF PARAGRAPH ONE
OF THIS SUBSECTION, UTILIZING THE INFORMATION AVAILABLE TO THE COMMIS-
SIONER PURSUANT TO THE PROVISIONS OF PARAGRAPH FIVE OF THIS SUBSECTION.
FOR THOSE TAXPAYERS WHOM THE COMMISSIONER HAS DETERMINED ELIGIBLE FOR
THIS CREDIT AUTHORIZED BY THIS SUBSECTION, IN DIRECT CONSULTATION WITH
THE DEPARTMENT OF PUBLIC SERVICE AND THE COMMISSION, THE COMMISSIONER
SHALL ADVANCE A PAYMENT IN THE AMOUNT SPECIFIED IN PARAGRAPH THREE OF
THIS SUBSECTION, WHICH SHALL BE DELIVERED TO ELIGIBLE TAXPAYERS ON OR
BEFORE THE FIFTEENTH OF OCTOBER OF TWO THOUSAND TWENTY-SIX. A TAXPAYER
WHO FAILED TO RECEIVE AN ADVANCE PAYMENT THAT THEY BELIEVE WAS DUE, OR
WHO RECEIVED AN ADVANCE PAYMENT THAT THEY BELIEVE IS LESS THAN THE
AMOUNT THAT WAS DUE, MAY REQUEST PAYMENT OF THE CLAIMED DEFICIENCY IN A
MANNER PRESCRIBED BY THE COMMISSIONER.
(5) NOTWITHSTANDING ANY OTHER PROVISION OF LAW, RULE OR REGULATION TO
THE CONTRARY, EMPLOYEES AND OFFICERS OF AN ELECTRIC CORPORATION, COMBI-
NATION GAS AND ELECTRIC CORPORATION, MUNICIPALITY, OR THE LONG ISLAND
POWER AUTHORITY OR ITS SERVICE PROVIDER, SHALL BE ALLOWED AND ARE
DIRECTED TO SHARE AND EXCHANGE INFORMATION REQUIRED TO IDENTIFY RESIDEN-
TIAL UTILITY RATEPAYERS ELIGIBLE FOR THE CREDIT ALLOWED PURSUANT TO THIS
A. 10009--B 97
SUBSECTION, WITH THE DEPARTMENT AND THE DEPARTMENT OF PUBLIC SERVICE.
PROVIDED, HOWEVER, ANY SUCH INFORMATION SHARED PURSUANT TO THIS
SUBSECTION SHALL REMAIN CONFIDENTIAL AND SHALL BE USED ONLY FOR THE
PURPOSES OF THIS SUBSECTION.
(6) NOTWITHSTANDING ANY OTHER PROVISION OF LAW, RULE OR REGULATION TO
THE CONTRARY, ANY CREDIT PAID PURSUANT TO THIS SUBSECTION, TO THE EXTENT
INCLUDIBLE IN GROSS INCOME FOR FEDERAL INCOME TAX PURPOSES, SHALL NOT BE
SUBJECT TO STATE OR LOCAL INCOME TAX.
§ 4. This act shall take effect immediately.
PART CC
Section 1. Section 606 of the tax law is amended by adding a new
subsection (h-1) to read as follows:
(H-1) CREDIT FOR CERTAIN TAXPAYERS WITH INCOMES BELOW CERTAIN THRESH-
OLDS. (1) NOTWITHSTANDING ANY OTHER PROVISION OF LAW TO THE CONTRARY,
FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND
TWENTY-SIX, A CREDIT SHALL BE ALLOWED TO A TAXPAYER AGAINST THE TAX
IMPOSED PURSUANT TO THE AUTHORITY OF THIS ARTICLE IN AN AMOUNT EQUAL TO
THE TAX OTHERWISE DUE UNDER THIS ARTICLE FOR SUCH TAXABLE YEAR, REDUCED
BY ALL THE CREDITS PERMITTED BY THIS ARTICLE FOR SUCH TAXABLE YEAR, IF:
(A) SUCH TAXPAYER IS ENTITLED TO A DEDUCTION FOR SUCH TAXABLE YEAR
UNDER SUBSECTION (C) OF SECTION ONE HUNDRED FIFTY-ONE OF THE INTERNAL
REVENUE CODE;
(B) SUCH TAXPAYER MEETS THE FOLLOWING INCOME THRESHOLDS FOR SUCH TAXA-
BLE YEAR:
(I) FOR RESIDENT TAXPAYERS WHO FILED AN INCOME TAX RETURN AS MARRIED
TAXPAYERS FILING JOINTLY OR A QUALIFIED SURVIVING SPOUSE:
IF THE NUMBER OF INCOME NO GREATER THAN:
DEPENDENTS IS:
1 $37,874
2 $47,718
3 $56,154
4 $62,873
5 $70,422
6 $77,421
7 OR MORE $94,613
(II) FOR RESIDENT TAXPAYERS WHO FILED AN INCOME TAX RETURN AS A SINGLE
TAXPAYER, MARRIED TAXPAYER FILING A SEPARATE RETURN, OR HEAD OF HOUSE-
HOLD:
IF THE NUMBER OF INCOME NO GREATER THAN:
DEPENDENTS IS:
1 $32,432
2 $37,910
3 $47,883
4 $55,295
5 $61,697
6 $67,650
7 $76,766
8 OR MORE $90,968
A. 10009--B 98
(III) FOR ANY TAXABLE YEAR BEGINNING ON OR AFTER JANUARY FIRST, TWO
THOUSAND TWENTY-SEVEN, THE COMMISSIONER SHALL MULTIPLY THE AMOUNTS IN
THIS SUBPARAGRAPH BY ONE PLUS THE COST-OF-LIVING ADJUSTMENT, WHICH SHALL
BE THE PERCENTAGE BY WHICH THE CONSUMER PRICE INDEX FOR THE PRECEDING
CALENDAR YEAR EXCEEDS THE CONSUMER PRICE INDEX FOR CALENDAR YEAR TWO
THOUSAND TWENTY-FIVE;
(C) SUCH TAXPAYER IS NOT ALLOWED A CREDIT PURSUANT TO:
(I) SUBSECTION (A) OF SECTION EIGHT HUNDRED SIXTY-THREE OF THIS CHAP-
TER AGAINST THE TAX IMPOSED PURSUANT TO ARTICLE TWENTY-TWO OF THIS CHAP-
TER; OR
(II) SUBSECTION (A) OF SECTION EIGHT HUNDRED SEVENTY OF THIS CHAPTER
AGAINST THE TAX IMPOSED PURSUANT TO THE AUTHORITY OF ARTICLE THIRTY OF
THIS CHAPTER; AND
(D) SUCH TAXPAYER DOES NOT REPORT DISQUALIFIED INCOME IN EXCESS OF TEN
THOUSAND DOLLARS IN THE TAXABLE YEAR, AS DEFINED IN SUBSECTION (I) OF
SECTION THIRTY-TWO OF THE INTERNAL REVENUE CODE.
(2) WHERE THE INCOME OF A TAXPAYER EXCEEDS THE AMOUNT INDICATED IN
SUBPARAGRAPH (B) OF PARAGRAPH ONE OF THIS SUBSECTION FOR SUCH TAXPAYER
BY FIVE THOUSAND DOLLARS OR LESS, AND SUCH TAXPAYER SATISFIES SUBPARA-
GRAPH (A) AND SUBPARAGRAPHS (C) AND (D) OF PARAGRAPH ONE OF THIS
SUBSECTION, A CREDIT SHALL BE ALLOWED IN THE AMOUNT DETERMINED BY MULTI-
PLYING: (A) THE TAX OTHERWISE DUE UNDER THIS ARTICLE FOR SUCH TAXABLE
YEAR REDUCED BY ALL THE CREDITS PERMITTED BY THIS ARTICLE FOR SUCH TAXA-
BLE YEAR BY (B) A FRACTION THE NUMERATOR OF WHICH IS FIVE THOUSAND
DOLLARS MINUS THE AMOUNT BY WHICH SUCH INCOME EXCEEDS THE AMOUNT INDI-
CATED IN SUBPARAGRAPH (B) OF PARAGRAPH ONE OF THIS SUBSECTION AND THE
DENOMINATOR OF WHICH IS FIVE THOUSAND DOLLARS.
(3) FOR PURPOSES OF THIS SUBSECTION:
(A) "CONSUMER PRICE INDEX" MEANS THE MOST RECENT CONSUMER PRICE INDEX
FOR ALL URBAN CONSUMERS PUBLISHED BY THE UNITED STATES DEPARTMENT OF
LABOR. THE CONSUMER PRICE INDEX FOR ANY CALENDAR YEAR SHALL BE THE
AVERAGE OF THE CONSUMER PRICE INDEX AS OF THE CLOSE OF THE TWELVE-MONTH
PERIOD ENDING ON AUGUST THIRTY-FIRST OF SUCH CALENDAR YEAR.
(B) "INCOME" MEANS FEDERAL ADJUSTED GROSS INCOME FOR THE TAXABLE YEAR.
§ 2. This act shall take effect immediately and shall apply to taxable
years beginning on or after January 1, 2026.
PART DD
Section 1. Short title. This act shall be known and may be cited as
the "savings accounts for a variable economy (SAVE) for small businesses
act".
§ 2. The tax law is amended by adding a new section 50 to read as
follows:
§ 50. SMALL BUSINESS SAVINGS ACCOUNTS. (A) GENERAL. (1) THE COMMIS-
SIONER SHALL ESTABLISH A PROGRAM TO ADMINISTER SMALL BUSINESS SAVINGS
ACCOUNTS UNDER THIS SECTION.
(2) THE COMMISSIONER SHALL ESTABLISH MINIMUM STANDARDS FOR SMALL BUSI-
NESS SAVINGS ACCOUNTS AND SHALL ESTABLISH ACCOUNTS, OR ENTER INTO AGREE-
MENTS THAT MEET THESE STANDARDS TO ADMINISTER SUCH ACCOUNTS. IN ESTAB-
LISHING SUCH STANDARDS AND MAKING SUCH AGREEMENTS THE COMMISSIONER
SHALL, TO THE EXTENT PRACTICABLE, SEEK TO MINIMIZE FEES, MINIMIZE RISK
OF LOSS OF PRINCIPAL, AND ENSURE A RANGE OF INVESTMENT RISK OPTIONS
AVAILABLE TO ACCOUNT BENEFICIARIES. ANY ELIGIBLE SMALL BUSINESS MAY
ESTABLISH A SMALL BUSINESS SAVINGS ACCOUNT WITH RESPECT TO SUCH BUSINESS
UNDER TERMS WHICH MEET THE REQUIREMENTS OF THIS SECTION.
A. 10009--B 99
(B) DEFINITION. FOR THE PURPOSES OF THIS SECTION, THE TERM "SMALL
BUSINESS SAVINGS ACCOUNT" MEANS A TAX PREFERRED SAVINGS ACCOUNT WHICH IS
DESIGNATED AT THE TIME OF ESTABLISHMENT OF THE PLAN AS A SMALL BUSINESS
SAVINGS ACCOUNT. SUCH DESIGNATION SHALL BE MADE IN SUCH MANNER AS THE
COMMISSIONER MAY BY REGULATION PRESCRIBE.
(C) CONTRIBUTIONS. (1) THERE SHALL BE ALLOWED AS A DEDUCTION AN AMOUNT
EQUAL TO THE CONTRIBUTIONS TO A SMALL BUSINESS SAVINGS ACCOUNT FOR THE
TAXABLE YEAR.
(2) THE AGGREGATE AMOUNT OF CONTRIBUTIONS FOR ANY TAXABLE YEAR TO ALL
SMALL BUSINESS SAVINGS ACCOUNTS MAINTAINED FOR THE BENEFIT OF AN ELIGI-
BLE SMALL BUSINESS SHALL NOT EXCEED AN AMOUNT EQUAL TO TEN PERCENT OF
THE ENTIRE NET INCOME OF GREATER THAN ZERO BUT LESS THAN TWO HUNDRED
FIFTY THOUSAND DOLLARS FOR ARTICLE NINE-A TAXPAYERS AND TEN PERCENT OF
THE NEW YORK SOURCE GROSS INCOME OF GREATER THAN ZERO BUT LESS THAN TWO
HUNDRED FIFTY THOUSAND DOLLARS FOR A LIMITED LIABILITY COMPANY, PARTNER-
SHIP, OR NEW YORK S CORPORATION.
(D) DISTRIBUTIONS. (1) ANY QUALIFIED DISTRIBUTION FROM A SMALL BUSI-
NESS SAVINGS ACCOUNT SHALL NOT BE INCLUDIBLE IN GROSS INCOME.
(2) ANY AMOUNTS DISTRIBUTED OUT OF A SMALL BUSINESS SAVINGS ACCOUNT
THAT ARE NOT QUALIFIED DISTRIBUTIONS SHALL BE INCLUDED IN GROSS INCOME
FOR THE TAXABLE YEAR OF THE DISTRIBUTION.
(3) FOR PURPOSES OF THIS SECTION:
(A) THE TERM "QUALIFIED DISTRIBUTION" MEANS ANY AMOUNT:
(I) DISTRIBUTED FROM A SMALL BUSINESS SAVINGS ACCOUNT DURING A SPECI-
FIED PERIOD OF ECONOMIC HARDSHIP; AND
(II) THE DISTRIBUTION OF WHICH IS CERTIFIED BY THE TAXPAYER AS PART OF
A PLAN WHICH PROVIDES FOR THE REINVESTMENT OF SUCH DISTRIBUTION FOR THE
FUNDING OF WORKER HIRING OR FINANCIAL STABILIZATION FOR THE PURPOSES OF
JOB RETENTION OR CREATION.
(B) THE TERM "SPECIFIED PERIOD OF ECONOMIC HARDSHIP" MEANS:
(I) ANY ONE-YEAR PERIOD BEGINNING IMMEDIATELY AFTER THE END OF ANY TWO
CONSECUTIVE QUARTERS DURING WHICH THE ANNUAL RATE OF REAL GROSS DOMESTIC
PRODUCT (AS DETERMINED BY THE BUREAU OF ECONOMIC ANALYSIS OF THE DEPART-
MENT OF COMMERCE) DECREASES, OR
(II) ANY PERIOD, IN NO EVENT SHORTER THAN ONE YEAR, SPECIFIED BY THE
COMMISSIONER FOR PURPOSES OF THIS SECTION.
(C) THE COMMISSIONER MAY SPECIFY A PERIOD UNDER CLAUSE (II) OF SUBPAR-
AGRAPH (B) OF THIS PARAGRAPH WITH RESPECT TO A SPECIFIED AREA IN THE
CASE OF AN AREA DETERMINED BY THE GOVERNOR TO WARRANT ASSISTANCE FROM
THE FEDERAL GOVERNMENT UNDER THE ROBERT T. STAFFORD DISASTER RELIEF AND
EMERGENCY ASSISTANCE ACT.
(D) THE COMMISSIONER SHALL, FOR EACH SPECIFIED PERIOD OF ECONOMIC
HARDSHIP ESTABLISH A DISTRIBUTION LIMITATION FOR QUALIFIED DISTRIBUTIONS
FROM ELIGIBLE SMALL BUSINESS ACCOUNTS WITH RESPECT TO SUCH PERIOD. THE
AGGREGATE QUALIFIED DISTRIBUTIONS FOR ANY SUCH PERIOD FROM ALL ACCOUNTS
WITH RESPECT TO AN ELIGIBLE SMALL BUSINESS SHALL NOT EXCEED SUCH LIMITA-
TION.
(E) ANY DISTRIBUTION NOT USED IN THE MANNER CERTIFIED UNDER SUBPARA-
GRAPH (A) OF THIS PARAGRAPH SHALL BE TREATED AS A DISTRIBUTION OTHER
THAN A QUALIFIED DISTRIBUTION IN THE TAXABLE YEAR OF SUCH DISTRIBUTION.
(F) ANY AMOUNT CONTRIBUTED TO A SMALL BUSINESS SAVINGS ACCOUNT (AND
ANY EARNINGS ATTRIBUTABLE THERETO), ONCE DISTRIBUTED, SHALL NOT BE
TREATED AS A QUALIFIED DISTRIBUTION UNLESS SUCH DISTRIBUTION IS MADE NOT
LATER THAN EIGHT YEARS AFTER THE DATE OF SUCH CONTRIBUTION. FOR PURPOSES
OF THIS SUBPARAGRAPH, AMOUNTS (AND THE EARNINGS ATTRIBUTABLE THERETO)
SHALL BE TREATED AS DISTRIBUTED ON A FIRST-IN FIRST-OUT BASIS.
A. 10009--B 100
(E) ELIGIBLE SMALL BUSINESS. FOR PURPOSES OF THIS SECTION:
(1) THE TERM "ELIGIBLE SMALL BUSINESS" MEANS, WITH RESPECT TO ANY
CALENDAR YEAR, ANY PERSON IF THE ANNUAL AVERAGE NUMBER OF FULL-TIME
EMPLOYEES EMPLOYED BY SUCH PERSON DURING THE PRECEDING CALENDAR YEAR WAS
TWENTY-FIVE OR FEWER AND SUCH PERSON HAS AN ANNUAL NET INCOME OF LESS
THAN TWO HUNDRED FIFTY THOUSAND DOLLARS. FOR PURPOSES OF THIS PARAGRAPH,
A PRECEDING CALENDAR YEAR MAY BE TAKEN INTO ACCOUNT ONLY IF THE PERSON
WAS IN EXISTENCE THROUGHOUT THE YEAR.
(2)(A) THE TERM "FULL-TIME EMPLOYEE" MEANS, WITH RESPECT TO ANY YEAR,
AN EMPLOYEE WHO IS EMPLOYED ON AVERAGE AT LEAST FORTY HOURS OF SERVICE
PER WEEK.
(B) THE COMMISSIONER SHALL PRESCRIBE SUCH REGULATIONS, RULES, AND
GUIDANCE AS MAY BE NECESSARY TO DETERMINE THE HOURS OF SERVICE OF AN
EMPLOYEE, INCLUDING RULES FOR THE APPLICATION OF THIS SUBDIVISION TO
EMPLOYEES WHO ARE NOT COMPENSATED ON AN HOURLY BASIS.
(F) EFFECT OF PLEDGING ACCOUNT AS SECURITY. IF, DURING ANY TAXABLE
YEAR OF THE ELIGIBLE SMALL BUSINESS FOR WHOSE BENEFIT AN ACCOUNT IS
ESTABLISHED, THE ACCOUNT OR ANY PORTION THEREOF IS PLEDGED AS SECURITY
FOR A LOAN, THE PORTION SO PLEDGED SHALL BE TREATED AS DISTRIBUTED IN A
DISTRIBUTION OTHER THAN A QUALIFIED DISTRIBUTION.
(G) ANNUAL REPORT. THE COMMISSIONER SHALL PREPARE AND DELIVER AN ANNU-
AL REPORT ON THE EFFICACY OF SMALL BUSINESS SAVINGS ACCOUNTS TO THE
TEMPORARY PRESIDENT OF THE SENATE AND THE SPEAKER OF THE ASSEMBLY. SUCH
REPORT SHALL INCLUDE, BUT NOT BE LIMITED TO, AN EVALUATION AS TO WHETHER
SMALL BUSINESS SAVINGS ACCOUNTS CONTRIBUTE TO FINANCIAL STABILIZATION OF
THE SMALL BUSINESS DURING TIMES OF ECONOMIC HARDSHIP, JOB RETENTION OR
CREATION.
§ 3. Paragraph (a) of subdivision 9 of section 208 of the tax law is
amended by adding a new subparagraph 24 to read as follows:
(24) FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOU-
SAND TWENTY-SIX, CONTRIBUTIONS AND QUALIFIED DISTRIBUTIONS BY AN ELIGI-
BLE SMALL BUSINESS, AS SUCH TERM IS DEFINED PURSUANT TO SECTION FIFTY OF
THIS CHAPTER.
§ 4. Paragraph (b) of subdivision 9 of section 208 of the tax law is
amended by adding a new subparagraph 28 to read as follows:
(28) FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOU-
SAND TWENTY-SIX, ANY AMOUNTS OF INELIGIBLE CONTRIBUTIONS AND DISTRIB-
UTIONS DESCRIBED IN SECTION FIFTY OF THIS CHAPTER.
§ 5. Subsection (c) of section 612 of the tax law is amended by adding
a new paragraph 48 to read as follows:
(48) FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOU-
SAND TWENTY-SIX, CONTRIBUTIONS AND QUALIFIED DISTRIBUTIONS BY AN ELIGI-
BLE SMALL BUSINESS, AS SUCH TERM IS DEFINED PURSUANT TO SECTION FIFTY OF
THIS CHAPTER.
§ 6. Subsection (b) of section 612 of the tax law is amended by adding
a new paragraph 44 to read as follows:
(44) FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOU-
SAND TWENTY-SIX, ANY AMOUNTS OF INELIGIBLE CONTRIBUTIONS AND DISTRIB-
UTIONS DESCRIBED IN SECTION FIFTY OF THIS CHAPTER.
§ 7. This act shall take effect immediately and shall apply to taxable
years beginning on or after January 1, 2026.
PART EE
A. 10009--B 101
Section 1. Subparagraph (A) of paragraph 39 of subsection (c) of
section 612 of the tax law, as amended by section 1 of part C of chapter
59 of the laws of 2022, is amended to read as follows:
(A) In the case of a taxpayer who is a small business or a taxpayer
who is a member, partner, or shareholder of a limited liability company,
partnership, or New York S corporation, respectively, that is a small
business, who or which has business income and/or farm income as defined
in the laws of the United States, an amount equal to [fifteen] TWENTY-
FIVE percent of the net items of income, gain, loss and deduction
attributable to such business or farm entering into federal adjusted
gross income, but not less than zero.
§ 2. This act shall take effect immediately and shall apply to taxable
years beginning on or after January 1, 2026.
PART FF
Section 1. Section 210-B of the tax law is amended by adding a new
subdivision 63 to read as follows:
63. CREDIT FOR CERTAIN FOOD DONATIONS TO QUALIFIED COMMUNITY-BASED
ORGANIZATIONS. (A) ALLOWANCE OF CREDIT. (I) IN THE CASE OF AN ELIGIBLE
TAXPAYER THAT IS A FOOD SERVICE ESTABLISHMENT, THERE SHALL BE ALLOWED A
CREDIT, TO BE COMPUTED AS HEREINAFTER PROVIDED AGAINST THE TAX IMPOSED
BY THIS ARTICLE FOR TAXABLE YEARS BEGINNING ON AND AFTER JANUARY FIRST,
TWO THOUSAND TWENTY-SIX. THE AMOUNT OF THE CREDIT SHALL BE FIFTY
PERCENT OF THE FAIR MARKET VALUE OF THE TAXPAYER'S QUALIFIED DONATIONS
UP TO SEVEN DOLLARS PER QUALIFIED DONATION MADE TO ANY ELIGIBLE COMMUNI-
TY-BASED ORGANIZATION DURING THE TAXABLE YEAR, NOT TO EXCEED TEN THOU-
SAND DOLLARS TOTAL PER TAXABLE YEAR. IF THE TAXPAYER IS A PARTNER IN A
PARTNERSHIP, THEN THE CAP IMPOSED BY THE PRECEDING SENTENCE SHALL BE
APPLIED AT THE ENTITY LEVEL, SO THE AGGREGATE CREDIT ALLOWED TO ALL
PARTNERS OF SUCH ENTITY IN THE TAXABLE YEAR DOES NOT EXCEED TEN THOUSAND
DOLLARS.
(II) IN THE CASE OF AN ELIGIBLE TAXPAYER THAT IS NOT A FOOD SERVICE
ESTABLISHMENT, THERE SHALL BE ALLOWED A CREDIT, TO BE COMPUTED AS HERE-
INAFTER PROVIDED AGAINST THE TAX IMPOSED BY THIS ARTICLE FOR TAXABLE
YEARS BEGINNING ON AND AFTER JANUARY FIRST, TWO THOUSAND TWENTY-SIX. THE
AMOUNT OF THE CREDIT SHALL BE FIFTY PERCENT OF THE FAIR MARKET VALUE OF
THE TAXPAYER'S QUALIFIED DONATIONS MADE TO ANY ELIGIBLE COMMUNITY-BASED
ORGANIZATION DURING THE TAXABLE YEAR, NOT TO EXCEED FIFTY THOUSAND
DOLLARS TOTAL PER TAXABLE YEAR. IF THE TAXPAYER IS A PARTNER IN A PART-
NERSHIP, THEN THE CAP IMPOSED BY THE PRECEDING SENTENCE SHALL BE APPLIED
AT THE ENTITY LEVEL, SO THE AGGREGATE CREDIT ALLOWED TO ALL PARTNERS OF
SUCH ENTITY IN THE TAXABLE YEAR DOES NOT EXCEED FIFTY THOUSAND DOLLARS.
(B) DEFINITIONS. FOR THE PURPOSES OF THIS SUBDIVISION, THE FOLLOWING
TERMS SHALL HAVE THE FOLLOWING MEANINGS:
(I) "ELIGIBLE TAXPAYER" MEANS A "FOOD SERVICE ESTABLISHMENT" OR A
MANUFACTURER, DISTRIBUTOR, WHOLESALER, OR RETAILER PRIMARILY ENGAGED IN
THE SALE, MANUFACTURE, OR DISTRIBUTION OF FOOD WITHIN NEW YORK STATE.
(II) "FOOD SERVICE ESTABLISHMENT" MEANS A TAXPAYER WHOSE FEDERAL GROSS
INCOME FROM PREPARED FOOD SALES FOR THE TAXABLE YEAR IS AT LEAST HALF OF
SUCH TAXPAYER'S FEDERAL GROSS INCOME.
(III) "QUALIFIED FOOD DONATION" MEANS ANY WHOLESOME, EDIBLE FOOD FIT
FOR HUMAN CONSUMPTION, INCLUDING PERISHABLE OR PREPARED FOODS, DONATED
TO AN ELIGIBLE COMMUNITY-BASED ORGANIZATION IN COMPLIANCE WITH APPLICA-
BLE STATE AND FEDERAL FOOD SAFETY LAWS. A QUALIFIED DONATION SHALL NOT
BE TRANSFERRED BY THE ELIGIBLE TAXPAYER TO THE ELIGIBLE COMMUNITY-BASED
A. 10009--B 102
ORGANIZATION IN EXCHANGE FOR MONEY, PROPERTY, SERVICES, OR ANY OTHER
CONSIDERATION.
(IV) "ELIGIBLE COMMUNITY-BASED ORGANIZATION" MEANS ANY PROGRAM OPERAT-
ING WITHIN THIS STATE THAT ACCEPTS OR DISTRIBUTES PERISHABLE OR PREPARED
MEALS AND HAS QUALIFIED FOR TAX EXEMPTION UNDER SECTION 501(C)(3) OF THE
INTERNAL REVENUE CODE.
(C) RECORD OF DONATION. (I) TO CLAIM A CREDIT UNDER THIS SUBDIVISION,
A TAXPAYER MUST GET AND KEEP A RECEIPT FROM THE ELIGIBLE COMMUNITY-BASED
ORGANIZATION SHOWING: (1) THE NAME OF THE ELIGIBLE COMMUNITY-BASED
ORGANIZATION; (2) THE DATE AND LOCATION OF THE QUALIFIED DONATION; AND
(3) A REASONABLY DETAILED DESCRIPTION OF THE QUALIFIED FOOD DONATION, IN
A MANNER TO BE PRESCRIBED BY THE COMMISSIONER.
(II) A LETTER OR OTHER WRITTEN COMMUNICATION FROM THE ELIGIBLE COMMU-
NITY-BASED ORGANIZATION ACKNOWLEDGING RECEIPT OF THE CONTRIBUTION AND
CONTAINING THE INFORMATION IN CLAUSES ONE, TWO, AND THREE OF SUBPARA-
GRAPH (I) OF THIS PARAGRAPH SHALL SERVE AS A RECEIPT.
(D) REFUNDABILITY. IF THE AMOUNT OF CREDIT ALLOWED UNDER THIS SUBDI-
VISION FOR ANY TAXABLE YEAR REDUCES THE TAX DUE FOR SUCH YEAR TO LESS
THAN THE FIXED DOLLAR MINIMUM AMOUNT PRESCRIBED IN PARAGRAPH (D) OF
SUBDIVISION ONE OF SECTION TWO HUNDRED TEN OF THIS ARTICLE OR IF THE
TAXPAYER OTHERWISE PAYS TAX BASED ON THE FIXED DOLLAR MINIMUM AMOUNT,
ANY AMOUNT OF CREDIT DUE IN SUCH TAXABLE YEAR SHALL BE TREATED AS AN
OVERPAYMENT OF TAX TO BE CREDITED OR REFUNDED IN ACCORDANCE WITH THE
PROVISIONS OF SECTION ONE THOUSAND EIGHTY-SIX OF THIS CHAPTER. PROVIDED,
HOWEVER, THE PROVISIONS OF SUBSECTION (C) OF SECTION ONE THOUSAND EIGHT-
Y-EIGHT OF THIS CHAPTER NOTWITHSTANDING, NO INTEREST SHALL BE PAID THER-
EON.
(E) ALLOCATION OF CREDIT. (I) THE AGGREGATE AMOUNT OF TAX CREDITS
ALLOWED UNDER THIS SUBDIVISION IN ANY TAXABLE YEAR FOR ELIGIBLE TAXPAY-
ERS THAT ARE FOOD SERVICE ESTABLISHMENTS SHALL BE TEN MILLION DOLLARS.
(II) THE AGGREGATE AMOUNT OF TAX CREDITS ALLOWED UNDER THIS SUBDIVISION
IN ANY TAXABLE YEAR FOR ELIGIBLE TAXPAYERS NOT CONSIDERED A FOOD SERVICE
ESTABLISHMENT SHALL BE FIFTEEN MILLION DOLLARS. (III) SUCH CREDIT SHALL
BE ALLOCATED BY THE DEPARTMENT IN ORDER OF PRIORITY BASED UPON THE DATE
OF FILING AN APPLICATION FOR ALLOCATION OF CREDIT FOR QUALIFIED FOOD
DONATIONS TO ELIGIBLE COMMUNITY-BASED ORGANIZATIONS WITH SUCH DEPART-
MENT. (IV) IF THE TOTAL AMOUNT OF ALLOCATED CREDITS APPLIED FOR IN ANY
PARTICULAR YEAR EXCEEDS THE AGGREGATE AMOUNT OF TAX CREDITS ALLOWED FOR
SUCH YEAR UNDER THIS SUBDIVISION, SUCH EXCESS SHALL BE TREATED AS HAVING
BEEN APPLIED FOR ON THE FIRST DAY OF THE SUBSEQUENT TAXABLE YEAR. (V)
PROVIDED, HOWEVER, THAT FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY
FIRST, TWO THOUSAND TWENTY-SIX, IF THE TOTAL AMOUNT OF ALLOCATED CREDITS
APPLIED FOR IN ANY PARTICULAR YEAR IS LESS THAN THE AGGREGATE AMOUNT OF
TAX CREDITS ALLOWED FOR SUCH YEAR UNDER THIS SUBDIVISION, ANY UNUSED
PORTION MAY BE CARRIED OVER AND ADDED TO THE AGGREGATE AMOUNT OF CREDITS
ALLOWED IN THE NEXT SUCCEEDING TAXABLE YEAR OR YEARS.
(F) RULES AND REGULATIONS. THE COMMISSIONER SHALL HAVE THE AUTHORITY
TO PROMULGATE RULES AND REGULATIONS AS MAY BE NECESSARY FOR THE DOCUMEN-
TATION, CERTIFICATION, APPLICATION PROCEDURES, AND GRANTING OF TAX CRED-
ITS AND REFUNDS UNDER THIS SUBDIVISION.
§ 2. Section 606 of the tax law is amended by adding a new subsection
(www) to read as follows:
(WWW) CREDIT FOR CERTAIN FOOD DONATIONS TO QUALIFIED COMMUNITY-BASED
ORGANIZATIONS. (A) ALLOWANCE OF CREDIT. (I) IN THE CASE OF AN ELIGIBLE
TAXPAYER THAT IS A FOOD SERVICE ESTABLISHMENT, THERE SHALL BE ALLOWED A
CREDIT, TO BE COMPUTED AS HEREINAFTER PROVIDED AGAINST THE TAX IMPOSED
A. 10009--B 103
BY THIS ARTICLE FOR TAXABLE YEARS BEGINNING ON AND AFTER JANUARY FIRST,
TWO THOUSAND TWENTY-SIX. THE AMOUNT OF THE CREDIT SHALL BE FIFTY PERCENT
OF THE FAIR MARKET VALUE OF THE TAXPAYERS QUALIFIED DONATIONS UP TO
SEVEN DOLLARS PER QUALIFIED DONATION MADE TO ANY ELIGIBLE COMMUNITY-
BASED ORGANIZATION DURING THE TAXABLE YEAR, NOT TO EXCEED TEN THOUSAND
DOLLARS TOTAL PER TAXABLE YEAR. IF THE TAXPAYER IS A PARTNER IN A PART-
NERSHIP OR A SHAREHOLDER OF A NEW YORK S CORPORATION, THEN THE CAP
IMPOSED BY THE PRECEDING SENTENCE SHALL BE APPLIED AT THE ENTITY LEVEL,
SO THE AGGREGATE CREDIT ALLOWED TO ALL PARTNERS OR SHAREHOLDERS OF SUCH
ENTITY IN THE TAXABLE YEAR DOES NOT EXCEED TEN THOUSAND DOLLARS.
(II) IN THE CASE OF AN ELIGIBLE TAXPAYER THAT IS NOT A FOOD SERVICE
ESTABLISHMENT, THERE SHALL BE ALLOWED A CREDIT, TO BE COMPUTED AS HERE-
INAFTER PROVIDED AGAINST THE TAX BY THIS ARTICLE FOR TAXABLE YEARS
BEGINNING ON AND AFTER JANUARY FIRST, TWO THOUSAND TWENTY-SIX. THE
AMOUNT OF THE CREDIT SHALL BE FIFTY PERCENT OF THE FAIR MARKET VALUE OF
THE TAXPAYER'S QUALIFIED DONATIONS MADE TO ANY ELIGIBLE COMMUNITY-BASED
ORGANIZATION DURING THE TAXABLE YEAR, NOT TO EXCEED FIFTY THOUSAND
DOLLARS PER TAXABLE YEAR. IF THE TAXPAYER IS A PARTNER IN A PARTNERSHIP
OR A SHAREHOLDER OF A NEW YORK S CORPORATION, THEN THE CAP IMPOSED BY
THE PRECEDING SENTENCE SHALL BE APPLIED AT THE ENTITY LEVEL, SO THE
AGGREGATE CREDIT ALLOWED TO ALL PARTNERS OR SHAREHOLDERS OF SUCH ENTITY
IN THE TAXABLE YEAR DOES NOT EXCEED FIFTY THOUSAND DOLLARS.
(B) DEFINITIONS. FOR PURPOSES OF THIS SUBSECTION, THE FOLLOWING TERMS
SHALL HAVE THE FOLLOWING MEANINGS:
(I) "ELIGIBLE TAXPAYER" MEANS A "FOOD SERVICE ESTABLISHMENT" OR A
MANUFACTURER, DISTRIBUTOR, WHOLESALER, OR RETAILER PRIMARILY ENGAGED IN
THE SALE, MANUFACTURE, OR DISTRIBUTION OF FOOD WITHIN NEW YORK STATE.
(II) "FOOD SERVICE ESTABLISHMENT" MEANS A TAXPAYER WHOSE FEDERAL GROSS
INCOME FROM PREPARED FOOD SALES FOR THE TAXABLE YEAR IS AT LEAST HALF OF
SUCH TAXPAYER'S FEDERAL GROSS INCOME.
(III) "QUALIFIED FOOD DONATION" MEANS ANY WHOLESOME, EDIBLE FOOD FIT
FOR HUMAN CONSUMPTION, INCLUDING PERISHABLE OR PREPARED FOODS, DONATED
TO AN ELIGIBLE COMMUNITY-BASED ORGANIZATION IN COMPLIANCE WITH THE
APPLICABLE STATE AND FEDERAL FOOD SAFETY LAWS. A QUALIFIED DONATION
SHALL NOT BE TRANSFERRED BY THE ELIGIBLE TAXPAYER TO THE ELIGIBLE COMMU-
NITY-BASED ORGANIZATION IN EXCHANGE FOR MONEY, PROPERTY, SERVICES, OR
ANY OTHER CONSIDERATION.
(IV) "ELIGIBLE COMMUNITY-BASED ORGANIZATION" MEANS ANY PROGRAM OPERAT-
ING WITHIN THIS STATE THAT ACCEPTS OR DISTRIBUTES PERISHABLE OR PREPARED
MEALS AND HAS QUALIFIED FOR THE TAX EXEMPTION UNDER SECTION 501(C)(3) OF
THE INTERNAL REVENUE CODE.
(C) RECORD OF DONATION. (I) TO CLAIM A CREDIT UNDER THIS SUBSECTION, A
TAXPAYER SHALL OBTAIN AND KEEP A RECEIPT FROM THE ELIGIBLE COMMUNITY-
BASED ORGANIZATION SHOWING: (1) THE NAME OF THE ELIGIBLE COMMUNITY-BASED
ORGANIZATION; (2) THE DATE AND LOCATION OF THE QUALIFIED DONATION; AND
(3) A REASONABLY DETAILED DESCRIPTION OF THE QUALIFIED FOOD DONATION, IN
A MANNER TO BE PRESCRIBED BY THE COMMISSIONER.
(D) REFUNDABILITY. IF THE AMOUNT OF CREDIT ALLOWED UNDER THIS
SUBSECTION FOR ANY TAXABLE YEAR SHALL EXCEED THE ELIGIBLE TAXPAYER'S TAX
FOR SUCH YEAR, THE EXCESS SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO
BE CREDITED OR REFUNDED IN ACCORDANCE WITH THE PROVISIONS OF SECTION SIX
HUNDRED EIGHTY-SIX OF THIS ARTICLE, PROVIDED, HOWEVER, THAT NO INTEREST
SHALL BE PAID THEREON.
(E) ALLOCATION OF CREDIT. (I) THE AGGREGATE AMOUNT OF TAX CREDITS
ALLOWED UNDER THIS SUBSECTION IN ANY TAXABLE YEAR FOR ELIGIBLE TAXPAYERS
THAT ARE FOOD SERVICE ESTABLISHMENTS SHALL BE TEN MILLION DOLLARS. (II)
A. 10009--B 104
THE AGGREGATE AMOUNT OF TAX CREDITS ALLOWED UNDER THIS SUBSECTION IN ANY
TAXABLE YEAR FOR ELIGIBLE TAXPAYERS NOT CONSIDERED A FOOD SERVICE ESTAB-
LISHMENT SHALL BE FIFTEEN MILLION DOLLARS. (III) SUCH CREDIT SHALL BE
ALLOCATED BY THE DEPARTMENT IN ORDER OF PRIORITY BASED UPON THE DATE OF
FILING AN APPLICATION FOR ALLOCATION OF CREDIT FOR QUALIFIED FOOD
DONATIONS TO ELIGIBLE COMMUNITY-BASED ORGANIZATIONS WITH SUCH DEPART-
MENT. (IV) IF THE TOTAL AMOUNT OF ALLOCATED CREDITS APPLIED FOR IN ANY
PARTICULAR YEAR EXCEEDS THE AGGREGATE AMOUNT OF TAX CREDITS ALLOWED FOR
SUCH YEAR UNDER THIS SUBSECTION, SUCH EXCESS SHALL BE TREATED AS HAVING
BEEN APPLIED FOR ON THE FIRST DAY OF THE SUBSEQUENT TAXABLE YEAR. (V)
PROVIDED, HOWEVER, THAT FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY
FIRST, TWO THOUSAND TWENTY-SIX, IF THE TOTAL AMOUNT OF ALLOCATED CREDITS
APPLIED FOR IN ANY PARTICULAR YEAR IS LESS THAN THE AGGREGATE AMOUNT OF
TAX CREDITS ALLOWED FOR SUCH YEAR UNDER THIS SUBSECTION, ANY UNUSED
PORTION MAY BE CARRIED OVER AND ADDED TO THE AGGREGATE AMOUNT OF CREDITS
ALLOWED IN THE NEXT SUCCEEDING TAXABLE YEAR OR YEARS.
(F) RULES AND REGULATIONS. THE COMMISSIONER SHALL HAVE THE AUTHORITY
TO PROMULGATE RULES AND REGULATIONS AS MAY BE NECESSARY FOR THE DOCUMEN-
TATION, CERTIFICATION, APPLICATION PROCEDURES, AND GRANTING OF TAX CRED-
ITS AND REFUNDS UNDER THIS SUBSECTION.
§ 3. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
of the tax law is amended by adding a new clause (liii) to read as
follows:
(LIII) TAX CREDIT FOR CERTAIN AMOUNT OF CREDIT UNDER
FOOD DONATIONS TO QUALIFIED SUBDIVISION SIXTY-THREE
COMMUNITY-BASED ORGANIZATIONS OF SECTION TWO HUNDRED
UNDER SUBSECTION (WWW) TEN-B
§ 4. Authority to issue tax credit. Any city in this state having a
population of one million or more inhabitants, acting through its local
legislative body, is hereby authorized and empowered to adopt and amend
local laws and rules offering a tax credit according to the provisions
in this act for the city personal income tax under article thirty of the
tax law.
§ 5. This act shall take effect immediately, and shall apply to taxa-
ble years beginning on or after January 1, 2026.
PART GG
Section 1. Paragraph (a) of subdivision 52 of section 210-B of the tax
law, as added by section 4 of part DDD of chapter 59 of the laws of
2017, is amended to read as follows:
(a) General. In the case of a taxpayer that is an eligible farmer,
there shall be allowed a credit, to be computed as hereinafter provided
against the tax imposed by this article for taxable years beginning on
and after January first, two thousand eighteen AND BEFORE JANUARY FIRST,
TWO THOUSAND TWENTY-SIX. The amount of the credit shall be twenty-five
percent of the fair market value of the taxpayer's qualified donations
made to any eligible food pantry during the taxable year, not to exceed
five thousand dollars per taxable year. If the taxpayer is a partner in
a partnership, then the cap imposed by the preceding sentence shall be
applied at the entity level, so that the aggregate credit allowed to all
partners of such entity in the taxable year does not exceed five thou-
sand dollars. PROVIDED, HOWEVER, THAT FOR TAXABLE YEARS BEGINNING ON AND
AFTER JANUARY FIRST, TWO THOUSAND TWENTY-SIX THE AMOUNT OF THE CREDIT
SHALL BE FIFTY PERCENT OF THE FAIR MARKET VALUE OF THE TAXPAYER'S QUALI-
FIED DONATIONS MADE TO ANY ELIGIBLE FOOD PANTRY DURING THE TAXABLE YEAR,
A. 10009--B 105
NOT TO EXCEED TWENTY THOUSAND DOLLARS PER TAXABLE YEAR. IF THE TAXPAYER
IS A PARTNER IN A PARTNERSHIP, THEN THE CAP IMPOSED BY THE PRECEDING
SENTENCE SHALL BE APPLIED AT THE ENTITY LEVEL, SO THAT THE AGGREGATE
CREDIT ALLOWED TO ALL PARTNERS OF SUCH ENTITY IN THE TAXABLE YEAR DOES
NOT EXCEED TWENTY THOUSAND DOLLARS.
§ 2. Paragraph 1 of subsection (n-2) of section 606 of the tax law, as
added by section 1 of part DDD of chapter 59 of the laws of 2017, is
amended to read as follows:
(1) General. In the case of a taxpayer who is an eligible farmer,
there shall be allowed a credit, to be computed as hereinafter provided,
against the tax imposed by this article for taxable years beginning on
and after January first, two thousand eighteen AND BEFORE JANUARY FIRST,
TWO THOUSAND TWENTY-SIX. The amount of the credit shall be twenty-five
percent of the fair market value of the taxpayer's qualified donations
made to any eligible food pantry during the taxable year, not to exceed
five thousand dollars per taxable year. If the taxpayer is a partner in
a partnership or a shareholder of a New York S corporation, then the cap
imposed by the preceding sentence shall be applied at the entity level,
so that the aggregate credit allowed to all partners or shareholders of
such entity in the taxable year does not exceed five thousand dollars.
PROVIDED, HOWEVER, THAT FOR TAXABLE YEARS BEGINNING ON AND AFTER JANUARY
FIRST, TWO THOUSAND TWENTY-SIX THE AMOUNT OF THE CREDIT SHALL BE FIFTY
PERCENT OF THE FAIR MARKET VALUE OF THE TAXPAYER'S QUALIFIED DONATIONS
MADE TO ANY ELIGIBLE FOOD PANTRY DURING THE TAXABLE YEAR, NOT TO EXCEED
TWENTY THOUSAND DOLLARS PER TAXABLE YEAR. IF THE TAXPAYER IS A PARTNER
IN A PARTNERSHIP OR A SHAREHOLDER OF A NEW YORK S CORPORATION, THEN THE
CAP IMPOSED BY THE PRECEDING SENTENCE SHALL BE APPLIED AT THE ENTITY
LEVEL, SO THAT THE AGGREGATE CREDIT ALLOWED TO ALL PARTNERS OR SHARE-
HOLDERS OF SUCH ENTITY IN THE TAXABLE YEAR DOES NOT EXCEED TWENTY THOU-
SAND DOLLARS.
§ 3. This act shall take effect immediately.
PART HH
Section 1. Paragraphs 2 and 3 of subsection (pp) of section 606 of the
tax law, paragraph 2 as amended by section 4 of part RR of chapter 59 of
the laws of 2018 and paragraph 3 as added by chapter 547 of the laws of
2006, are amended and a new paragraph 13 is added to read as follows:
(2) (A) With respect to any particular residence of a taxpayer, the
credit allowed under paragraph one of this subsection shall not exceed
fifty thousand dollars for taxable years beginning on or after January
first, two thousand ten and before January first, two thousand twenty-
five and twenty-five thousand dollars for taxable years beginning on or
after January first, two thousand twenty-five AND BEFORE JANUARY FIRST,
TWO THOUSAND TWENTY-SIX. PROVIDED, HOWEVER, FOR TAXABLE YEARS BEGINNING
ON OR AFTER JANUARY FIRST, TWO THOUSAND TWENTY-SIX THE CREDIT ALLOWED
UNDER PARAGRAPH ONE OF THIS SUBSECTION SHALL NOT EXCEED FIFTY THOUSAND
DOLLARS. In the case of a [husband and wife] MARRIED COUPLE, the amount
of the credit shall be divided between them equally or in such other
manner as they may both elect. If a taxpayer incurs qualified rehabili-
tation expenditures in relation to more than one residence in the same
year, the total amount of credit allowed under paragraph one of this
subsection for all such expenditures shall not exceed fifty thousand
dollars for taxable years beginning on or after January first, two thou-
sand ten and before January first, two thousand twenty-five and twenty-
five thousand dollars for taxable years beginning on or after January
A. 10009--B 106
first, two thousand twenty-five AND BEFORE JANUARY FIRST, TWO THOUSAND
TWENTY-SIX. PROVIDED, HOWEVER, FOR TAXABLE YEARS BEGINNING ON OR AFTER
JANUARY FIRST, TWO THOUSAND TWENTY-SIX THE CREDIT ALLOWED UNDER PARA-
GRAPH ONE OF THIS SUBSECTION FOR ALL SUCH EXPENDITURES SHALL NOT EXCEED
FIFTY THOUSAND DOLLARS.
(B) For taxable years beginning on or after January first, two thou-
sand ten and before January first, two thousand twenty-five, if the
amount of credit allowable under this subsection shall exceed the
taxpayer's tax for such year, and the taxpayer's New York adjusted gross
income for such year does not exceed sixty thousand dollars, the excess
shall be treated as an overpayment of tax to be credited or refunded in
accordance with the provisions of section six hundred eighty-six of this
article, provided, however, that no interest shall be paid thereon. If
the taxpayer's New York adjusted gross income for such year exceeds
sixty thousand dollars, the excess credit [that] may be carried over to
the following year or years and may be deducted from the taxpayer's tax
for such year or years. For taxable years beginning on or after January
first, two thousand twenty-five AND BEFORE JANUARY FIRST, TWO THOUSAND
TWENTY-SIX, if the amount of credit allowable under this subsection
shall exceed the taxpayer's tax for such year, the excess may be carried
over to the following year or years and may be deducted from the taxpay-
er's tax for such year or years. PROVIDED, FURTHER, FOR TAXABLE YEARS
BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND TWENTY-SIX, IF THE
AMOUNT OF CREDIT ALLOWABLE UNDER THIS SUBSECTION SHALL EXCEED THE
TAXPAYER'S TAX FOR SUCH YEAR, AND THE TAXPAYER'S NEW YORK ADJUSTED GROSS
INCOME FOR SUCH YEAR DOES NOT EXCEED SIXTY THOUSAND DOLLARS, THE EXCESS
SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED OR REFUNDED IN
ACCORDANCE WITH THE PROVISIONS OF SECTION SIX HUNDRED EIGHTY-SIX OF THIS
ARTICLE, PROVIDED, HOWEVER, THAT NO INTEREST SHALL BE PAID THEREON.
(3)(A) The term "qualified rehabilitation expenditure" means, for
purposes of this subsection, any amount properly chargeable to a capital
account:
(i) in connection with the certified rehabilitation of a qualified
historic home, and
(ii) for property for which depreciation would be allowable under
section 168 of the internal revenue code if the qualified historic home
were used in a trade or business.
(B) Such term shall not include (i) the cost of acquiring any building
or interest therein, (ii) any expenditure attributable to the enlarge-
ment of an existing building, or (iii) any expenditure made prior to
January first, two thousand seven.
(C) [Such term shall not include any expenditure in connection with
the rehabilitation of a qualified historic home unless at least five
percent of the total expenditures made in the rehabilitation process are
allocable to the rehabilitation of the exterior of such building.
(D)] If only a portion of a building is used as a residence of the
taxpayer, only qualified rehabilitation expenditures which are properly
allocable to such residential portion shall be taken into account under
this subsection.
(13) THE COMMISSIONER SHALL REPORT ANNUALLY ON OR BEFORE THE FIRST DAY
OF NOVEMBER, ON THE AGGREGATE AMOUNT OF CREDITS CLAIMED AND AWARDED
PURSUANT TO THIS SUBSECTION ON RETURNS FILED DURING THE PRECEDING CALEN-
DAR YEAR. SUCH REPORT SHALL BE PROVIDED TO THE GOVERNOR, TEMPORARY
PRESIDENT OF THE SENATE, SPEAKER OF THE ASSEMBLY, CHAIR OF THE SENATE
FINANCE COMMITTEE AND CHAIR OF THE ASSEMBLY WAYS AND MEANS COMMITTEE,
SHALL BE MADE PUBLICLY AVAILABLE ON THE DEPARTMENT'S WEBSITE.
A. 10009--B 107
§ 2. Section 14.05 of the parks, recreation and historic preservation
law is amended by adding a new subdivision 5 to read as follows:
5. THE COMMISSIONER SHALL REPORT ANNUALLY ON OR BEFORE THE FIRST DAY
OF NOVEMBER, ON THE TAX CREDIT PROJECTS APPLIED FOR PURSUANT TO
SUBSECTION (PP) OF SECTION SIX HUNDRED SIX OF THE TAX LAW ON RETURNS
FILED DURING THE PRECEDING CALENDAR YEAR. SUCH REPORT SHALL BE PROVIDED
TO THE GOVERNOR, TEMPORARY PRESIDENT OF THE SENATE, SPEAKER OF THE
ASSEMBLY, CHAIR OF THE SENATE FINANCE COMMITTEE AND CHAIR OF THE ASSEM-
BLY WAYS AND MEANS COMMITTEE, SHALL BE MADE PUBLICLY AVAILABLE ON THE
OFFICE'S WEBSITE AND SHALL INCLUDE THE FOLLOWING INFORMATION:
(A) THE NUMBER AND VALUE OF TAX CREDIT PROJECTS APPLIED FOR DURING THE
STATE FISCAL YEAR, ORGANIZED BY MUNICIPALITY AND COUNTY, AND PROJECT
SIZE;
(B) THE NUMBER AND VALUE OF TAX CREDIT PROJECTS CERTIFIED BY THE
OFFICE DURING THE STATE FISCAL YEAR, ORGANIZED BY MUNICIPALITY AND COUN-
TY, AND PROJECT SIZE;
(C) THE TOTAL VALUE OF CREDITS CERTIFIED ANNUALLY FOR EACH OF THE
TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND SEVEN TO
THE PRESENT, BY MUNICIPALITY AND COUNTY;
(D) THE NUMBER OF HOUSING UNITS BEFORE AND AFTER REHABILITATION; AND
(E) THE NUMBER OF PROJECTS CERTIFIED FOR STATE CREDITS BY THE OFFICE.
§ 3. This act shall take effect immediately and shall apply to taxable
years beginning on or after January 1, 2026.
PART II
Section 1. The tax law is amended by adding a new section 186-h to
read as follows:
§ 186-H. EXCISE TAX ON ENERGY USED IN DIGITAL ASSET MINING USING
PROOF-OF-WORK AUTHENTICATION METHODS. 1. FOR THE PURPOSES OF THIS
SECTION, THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS:
(A) "AFFILIATE" MEANS, WITH RESPECT TO ANY SPECIFIED ENTITY, AN ENTITY
THAT DIRECTLY, OR INDIRECTLY THROUGH ONE OR MORE INTERMEDIARIES,
CONTROLS OR IS CONTROLLED BY, OR IS UNDER COMMON CONTROL WITH, THE ENTI-
TY SPECIFIED.
(B) "BLOCKCHAIN" MEANS DATA THAT IS:
(I) SHARED ACROSS A NETWORK TO CREATE A LEDGER OF VERIFIED TRANS-
ACTIONS OR INFORMATION AMONG NETWORK PARTICIPANTS LINKED USING CRYPTOG-
RAPHY TO MAINTAIN THE INTEGRITY OF THE LEDGER AND TO EXECUTE OTHER FUNC-
TIONS; AND
(II) DISTRIBUTED AMONG NETWORK PARTICIPANTS IN AN AUTOMATED FASHION TO
CONCURRENTLY UPDATE NETWORK PARTICIPANTS ON THE STATE OF THE LEDGER AND
ANY OTHER FUNCTIONS.
(C) "CONTROL" (INCLUDING THE TERMS CONTROLLING, CONTROLLED BY AND
UNDER COMMON CONTROL WITH) MEANS THE POSSESSION, DIRECT OR INDIRECT, OF
THE POWER TO DIRECT OR CAUSE THE DIRECTION OF THE MANAGEMENT AND POLI-
CIES OF AN ENTITY, WHETHER THROUGH THE OWNERSHIP OF VOTING SECURITIES,
BY CONTRACT, OR OTHERWISE.
(D) "CONTROLLED GROUP" MEANS TWO OR MORE ENTITIES THAT ARE AFFILIATES
OF EACH OTHER.
(E) "DIGITAL ASSET" MEANS AN ASSET THAT IS ISSUED, TRANSFERRED, OR
BOTH, USING DISTRIBUTED LEDGER OR BLOCKCHAIN TECHNOLOGY, INCLUDING, BUT
NOT LIMITED TO, DIGITAL CURRENCIES, DIGITAL COINS, DIGITAL NON-FUNGIBLE
TOKENS OR OTHER SIMILAR ASSETS.
A. 10009--B 108
(F) "DISTRIBUTED LEDGER OR BLOCKCHAIN TECHNOLOGY" MEANS A DIGITAL
SYSTEM FOR RECORDING, STORING, AND SHARING DATA OR TRANSACTIONS ACROSS
MULTIPLE COMPUTERS OR DEVICES:
(I) IN WHICH EACH PARTICIPANT MAINTAINS AN IDENTICAL COPY OF THE
LEDGER AND UPDATES ARE VALIDATED THROUGH A CONSENSUS MECHANISM AMONG THE
PARTICIPANTS RATHER THAN BY A SINGLE CENTRALIZED AUTHORITY; AND
(II) WHICH EMPLOYS CRYPTOGRAPHIC METHODS TO ENSURE DATA INTEGRITY,
CHRONOLOGICAL ORDERING, AND RESISTANCE TO UNAUTHORIZED ALTERATION OF
RECORDS.
(III) MAY TAKE THE FORM OF A BLOCKCHAIN NETWORK OR OTHER DATA STRUC-
TURES THAT PROVIDE DECENTRALIZED VALIDATION, TRANSPARENCY, AND SYNCHRO-
NIZATION OF RECORDS AMONG PARTICIPANTS, WHETHER PERMISSIONED OR PERMIS-
SIONLESS, PUBLIC OR PRIVATE.
(G) "DIGITAL ASSET MINING USING PROOF-OF-WORK AUTHENTICATION METHODS"
MEANS THE OPERATION OF SPECIALIZED COMPUTER HARDWARE OR DEVICES, INCLUD-
ING BUT NOT LIMITED TO APPLICATION-SPECIFIC INTEGRATED CIRCUITS (ASICS)
OR GRAPHICS PROCESSING UNITS (GPUS) FOR THE PURPOSE OF VALIDATION OR
AUTHENTICATION OF TRANSACTIONS, RECORDING DATA, OR SECURING CONSENSUS ON
A DISTRIBUTED LEDGER OR BLOCKCHAIN NETWORK THROUGH THE REPEATED PERFORM-
ANCE OF COMPUTATIONAL ALGORITHMS. SUCH PROCESSES, COMMONLY REFERRED TO
AS "PROOF-OF-WORK", INVOLVE SOLVING CRYPTOGRAPHIC OR MATHEMATICAL
PUZZLES OF INCREASING DIFFICULTY IN ORDER TO CREATE NEW UNITS OF DIGITAL
ASSETS OR TO RECEIVE COMPENSATION IN THE FORM OF TRANSACTION FEES OR
BLOCK REWARDS, AND ARE CHARACTERIZED BY CONTINUOUS, HIGH-INTENSITY ELEC-
TRICITY CONSUMPTION FOR THE PURPOSE OF VERIFYING TRANSACTIONS AND MAIN-
TAINING THE INTEGRITY OF THE BLOCKCHAIN.
2. (A) THERE IS HEREBY IMPOSED ON ANY TAXPAYER ENGAGED IN THE BUSINESS
OF DIGITAL ASSET MINING USING PROOF-OF-WORK AUTHENTICATION METHODS A TAX
ON THE ANNUAL CONSUMPTION OF ELECTRICITY PURCHASED, PRODUCED, OR
ACQUIRED BY SUCH TAXPAYER DURING A TAXABLE YEAR AND USED BY SUCH TAXPAY-
ER WITH RESPECT TO SUCH BUSINESS IN THIS STATE.
(B) THE RATE OF TAX IMPOSED BY THIS SECTION SHALL BE AS FOLLOWS:
(I) FOR EVERY KILOWATT-HOUR LESS THAN OR EQUAL TO 2.25 MILLION KILO-
WATT-HOURS PER YEAR, 0 CENTS PER KILOWATT-HOUR.
(II) FOR EVERY KILOWATT-HOUR OVER 2.25 MILLION TO 5 MILLION KILOWATT-
HOURS PER YEAR, 2 CENTS PER KILOWATT-HOUR.
(III) FOR EVERY KILOWATT-HOUR OVER 5 MILLION TO 10 MILLION KILOWATT-
HOURS PER YEAR, 3 CENTS PER KILOWATT-HOUR.
(IV) FOR EVERY KILOWATT-HOUR OVER 10 MILLION TO 20 MILLION KILOWATT-
HOURS PER YEAR, 4 CENTS PER KILOWATT-HOUR.
(V) FOR EVERY KILOWATT-HOUR OVER 20 MILLION KILOWATT-HOURS PER YEAR, 5
CENTS PER KILOWATT-HOUR.
(C) FOR THE PURPOSES OF THIS SECTION, TAXPAYERS IN A CONTROLLED GROUP
ARE TREATED AS A SINGLE ENTITY FOR THE PURPOSE OF DETERMINING ANNUAL
CONSUMPTION OF ELECTRICITY USED WITH RESPECT TO THE BUSINESS OF DIGITAL
ASSET MINING USING PROOF-OF-WORK AUTHENTICATION METHODS IN THIS STATE,
AND SHALL BE JOINTLY AND SEVERALLY LIABLE FOR ANY PAYMENT OWED PURSUANT
TO THIS SECTION BY ANY ENTITY IN THE CONTROLLED GROUP.
(D) THE ADMINISTRATIVE PROCEDURES SET FORTH IN ARTICLE TWENTY-SEVEN OF
THIS CHAPTER SHALL APPLY UNLESS SPECIFIC PROVISIONS TO THE CONTRARY ARE
SET FORTH IN THIS SECTION.
(E) THE DEPARTMENT OF TAXATION AND FINANCE MAY PRESCRIBE SUCH RULES
AND REGULATIONS AS MAY BE NECESSARY TO CARRY OUT THIS SECTION.
3. ALL TAXES, INTEREST, AND PENALTIES COLLECTED OR RECEIVED FROM TAXES
IMPOSED BY THIS SECTION SHALL BE USED TO PROVIDE UTILITY RATEPAYER
RELIEF.
A. 10009--B 109
§ 2. This act shall take effect immediately and shall apply to all
taxable years commencing on and after January 1, 2027.
PART JJ
Section 1. The real property tax law is amended by adding a new
section 997 to read as follows:
§ 997. VACANCY SURCHARGE ON VACANT AND ABANDONED PROPERTY IN CITIES.
1. (A) LOCAL OPTION; VACANCY SURCHARGE. NOTWITHSTANDING ANY OTHER
PROVISIONS OF LAW TO THE CONTRARY, A CITY IS HEREBY AUTHORIZED AND
EMPOWERED TO ADOPT AND AMEND LOCAL LAWS TO IMPOSE, IN ADDITION TO ANY
OTHER TAX IMPOSED PURSUANT TO THIS CHAPTER, A REAL PROPERTY TAX
SURCHARGE ON VACANT AND ABANDONED PROPERTY, HEREINAFTER REFERRED TO AS A
"VACANCY SURCHARGE." SUCH SURCHARGE SHALL BE IMPOSED ON THE ASSESSED
VALUE OF SUCH PROPERTY AND COLLECTED IN THE SAME MANNER AS REAL PROPERTY
TAXES.
(B) A LOCAL LAW ADOPTED PURSUANT TO THIS SUBDIVISION MAY ESTABLISH
DIFFERENT VACANCY SURCHARGE RATES FOR DIFFERENT CLASSES OR CATEGORIES OF
REAL PROPERTY; PROVIDED THAT ANY SUCH SURCHARGE SHALL BE APPLIED
UNIFORMLY TO ALL VACANT AND ABANDONED PROPERTIES WITHIN THE SAME CLASS
OR CATEGORY; AND PROVIDED, FURTHER, SUCH LOCAL LAW SHALL ESTABLISH THAT
VACANT AND ABANDONED PROPERTIES CONSTITUTE A DISTINCT TAXABLE SUBCLASS
WITHIN EACH CLASS OR CATEGORY OF REAL PROPERTY, FOR PURPOSES OF THIS
SECTION ONLY.
2. DESIGNATION OF VACANT AND ABANDONED PROPERTY. (A) FOR THE PURPOSES
OF THIS SECTION, REAL PROPERTY SHALL BE DEEMED VACANT AND ABANDONED IF
THE FOLLOWING CONDITIONS APPLY:
(I) SUCH PROPERTY IS "VACANT AND ABANDONED RESIDENTIAL PROPERTY" AS
DEFINED IN PARAGRAPH (A) OF SUBDIVISION TWO OF SECTION THIRTEEN HUNDRED
NINE OF THE REAL PROPERTY ACTIONS AND PROCEEDINGS LAW;
(II) A COURT OR OTHER APPROPRIATE STATE OR LOCAL GOVERNMENTAL ENTITY
HAS DETERMINED, FOLLOWING DUE NOTICE TO THE OWNER OF RECORD OR OCCUPANT,
THAT SUCH PROPERTY IS VACANT AND ABANDONED;
(III) EACH OWNER HAS ISSUED A SWORN WRITTEN STATEMENT EXPRESSING THE
INTENT TO VACATE AND ABANDON SUCH PROPERTY AND AN INSPECTION OF SUCH
PROPERTY SHOWS NO EVIDENCE OF LAWFUL OCCUPANCY; OR
(IV) SUCH PROPERTY IS THE SUBJECT OF A CONDEMNATION PROCEEDING OR HAS
BEEN ORDERED VACATED BY A GOVERNMENTAL AUTHORITY.
(B) (I) NOTWITHSTANDING PARAGRAPH (A) OF THIS SUBDIVISION, FOR THE
PURPOSES OF THIS SECTION, A MAYOR, A LOCAL ASSESSOR, A LOCAL ENFORCEMENT
OFFICER, A BUILDING INSPECTOR, OR OTHER MUNICIPAL OFFICIAL MAY DESIGNATE
REAL PROPERTY THAT HAS NOT BEEN OCCUPIED FOR RESIDENTIAL, COMMERCIAL, OR
OTHER LAWFUL PURPOSES BY THE OWNER, A TENANT OR ANOTHER PERSON WITH THE
OWNER'S PERMISSION FOR A CONTINUOUS PERIOD OF AT LEAST ONE HUNDRED
EIGHTY DAYS AS VACANT AND ABANDONED PROPERTY, UPON INSPECTION OF SUCH
PROPERTY AND A FINDING THAT ONE OR MORE OF THE CONDITIONS SET FORTH IN
SUBPARAGRAPH (II) OF THIS PARAGRAPH ARE PRESENT. IN DETERMINING WHETHER
INSPECTION OF SUCH PROPERTY IS WARRANTED, FACTORS THAT MAY BE CONSIDERED
INCLUDE, BUT ARE NOT LIMITED TO, DOCUMENTED COMPLAINTS FROM NEIGHBORS OR
MEMBERS OF THE PUBLIC, POLICE CALLS FOR SERVICE RELATED TO THE PROPERTY,
DOCUMENTED VIOLATIONS OF BUILDING OR PROPERTY MAINTENANCE CODES, AND
REFERRALS FROM OTHER GOVERNMENTAL AGENCIES.
(II) CONDITIONS INDICATING VACANT AND ABANDONED PROPERTY MAY INCLUDE
BUT SHALL NOT BE LIMITED TO THE FOLLOWING:
(A) CONDITIONS THAT ENDANGER THE HEALTH, SAFETY, OR GENERAL WELFARE OF
THE COMMUNITY;
A. 10009--B 110
(B) FAILURE TO MAINTAIN THE PROPERTY IN A MANNER CONSISTENT WITH THE
STANDARDS SET FORTH IN THE NEW YORK STATE PROPERTY MAINTENANCE CODE;
(C) THE PROPERTY APPEARS STRUCTURALLY UNSOUND OR OTHERWISE PRESENTS A
POTENTIAL HAZARD OR DANGER TO THE SAFETY OF PERSONS;
(D) COLLAPSING, MISSING, OR DETERIORATING WALLS, ROOF, STAIRS, PORCH-
ES, BALCONIES, CHIMNEYS, AND OTHER BUILDING ELEMENTS;
(E) SIDING OR EXTERIOR WALLS THAT ARE SERIOUSLY DAMAGED, MISSING, OR
DETERIORATING;
(F) BOARDED, MISSING OR BROKEN WINDOWS OR DOORS;
(G) ABSENCE OF WINDOW COVERINGS SUCH AS CURTAINS, BLINDS, OR SHUTTERS;
(H) THE PROPERTY BEING OPEN TO CASUAL ENTRY OR TRESPASS;
(I) OVERGROWN OR DEAD VEGETATION;
(J) ACCUMULATION OF TRASH, REFUSE OR OTHER DEBRIS;
(K) ACCUMULATION OF NEWSPAPERS, CIRCULARS, FLYERS, MAIL OR OTHER MATE-
RIALS;
(L) PAST DUE UTILITY NOTICES, DISCONNECTED UTILITIES, OR LACK OF
ACTIVE UTILITY USAGE;
(M) SIGNS OF VANDALISM, INCLUDING GRAFFITI;
(N) PRESENCE OF MOLD, ALGAE, ABANDONED OR WILD ANIMALS, OR INSECT OR
PEST INFESTATION; AND
(O) ABSENCE OF FURNISHINGS OR PERSONAL ITEMS CONSISTENT WITH HABITA-
TION.
(C) REAL PROPERTY SHALL NOT BE DEEMED VACANT AND ABANDONED IF THE
FOLLOWING CONDITIONS APPLY:
(I) SUCH PROPERTY IS UNDERGOING CONSTRUCTION, RENOVATION, OR REHABILI-
TATION THAT IS PROCEEDING DILIGENTLY TO COMPLETION;
(II) SUCH PROPERTY IS OCCUPIED ON A SEASONAL BASIS, BUT OTHERWISE
SECURE;
(III) SUCH PROPERTY IS THE SUBJECT OF A PROBATE ACTION, ACTION TO
QUIET TITLE, OR OTHER OWNERSHIP DISPUTE OF WHICH THE MUNICIPALITY HAS
ACTUAL NOTICE, AND IS SECURE;
(IV) SUCH PROPERTY HAS BEEN DAMAGED BY A NATURAL DISASTER, AND THE
OWNER HAS DEMONSTRATED AN INTENT TO REPAIR OR REOCCUPY THE PROPERTY; OR
(V) SUCH PROPERTY IS OCCUPIED BY THE OWNER, A RELATIVE OF THE OWNER OR
A TENANT LAWFULLY IN POSSESSION.
(D) FOR PURPOSES OF THIS SECTION, REAL PROPERTY SHALL NOT BE DEEMED
OCCUPIED SOLELY BECAUSE FURNISHINGS OR PERSONAL PROPERTY ARE PRESENT,
UTILITIES REMAIN CONNECTED, OR THE OWNER OR ANOTHER PERSON OCCASIONALLY
VISITS, TEMPORARILY OCCUPIES OR MAKES INCIDENTAL USE OF THE PROPERTY
WITHOUT REGULAR HABITATION OR ONGOING LAWFUL USE CONSISTENT WITH THE
PROPERTY'S INTENDED PURPOSE. A PROPERTY PREVIOUSLY DESIGNATED AS VACANT
AND ABANDONED SHALL NOT BE DEEMED OCCUPIED UNLESS IT HAS BEEN LAWFULLY
OCCUPIED FOR RESIDENTIAL, COMMERCIAL, OR OTHER LAWFUL PURPOSES ON A
REGULAR OR HABITUAL BASIS.
3. NOTICE AND REVIEW. (A) PRIOR TO DESIGNATING A PROPERTY AS VACANT
AND ABANDONED FOR PURPOSES OF THIS SECTION, THE CITY SHALL PROVIDE WRIT-
TEN NOTICE BY FIRST CLASS MAIL TO THE OWNER OF RECORD AT THE ADDRESS
LISTED ON THE ASSESSMENT ROLL. SUCH NOTICE SHALL STATE THE BASIS FOR THE
PROPOSED DESIGNATION AND PROVIDE SUCH OWNER WITH AN OPPORTUNITY TO
CONTEST SUCH DESIGNATION.
(B) IF SUCH OWNER FAILS TO RESPOND TO SUCH NOTICE WITHIN FORTY-FIVE
DAYS FROM THE MAILING THEREOF, OR IF THEIR RESPONSE DOES NOT ADEQUATELY
DEMONSTRATE THAT THE PROPERTY IS NOT VACANT AND ABANDONED, THE CITY MAY
ISSUE A FINAL DETERMINATION THAT THE PROPERTY IS VACANT AND ABANDONED
AND THE VACANCY SURCHARGE AUTHORIZED BY SUBDIVISION ONE OF THIS SECTION
SHALL APPLY BEGINNING WITH THE NEXT ASSESSMENT ROLL.
A. 10009--B 111
(C) AN OWNER DISSATISFIED WITH THE CITY'S FINAL DETERMINATION MAY
APPEAL SUCH FINAL DETERMINATION TO THE COMMISSIONER, IN A FORM AND
MANNER TO BE PRESCRIBED BY THE COMMISSIONER.
(D) ANY DETERMINATION OF THE COMMISSIONER PURSUANT TO THIS SUBDIVISION
SHALL CONSTITUTE A FINAL AGENCY DETERMINATION.
(E) ANY OWNER AGGRIEVED BY A FINAL DETERMINATION OF THE COMMISSIONER
MAY SEEK JUDICIAL REVIEW PURSUANT TO ARTICLE SEVENTY-EIGHT OF THE CIVIL
PRACTICE LAW AND RULES.
(F) IF THE DESIGNATION OF A PROPERTY AS VACANT AND ABANDONED IS OVER-
TURNED, ANY ADDITIONAL TAXES, INTEREST, OR PENALTIES IMPOSED PURSUANT TO
THIS SECTION SHALL BE VOID, AND ANY PAYMENTS MADE AS A RESULT OF SUCH
DESIGNATION SHALL CONSTITUTE AN OVERPAYMENT SUBJECT TO REFUND WITHOUT
INTEREST PURSUANT TO SECTION FIVE HUNDRED FIFTY-SIX OF THIS CHAPTER.
4. REPORTING REQUIREMENTS. ON OR BEFORE APRIL FIRST OF EACH YEAR, A
CITY THAT HAS ADOPTED A LOCAL LAW PURSUANT TO THIS SECTION SHALL SUBMIT
A REPORT TO THE GOVERNOR, THE TEMPORARY PRESIDENT OF THE SENATE, THE
SPEAKER OF THE ASSEMBLY, THE COMMISSIONER OF TAXATION AND FINANCE, AND
THE COMMISSIONER OF THE DIVISION OF HOMES AND COMMUNITY RENEWAL CONTAIN-
ING THE FOLLOWING DATA FROM THE PRECEDING YEAR:
(A) THE VACANCY SURCHARGE IMPOSED PURSUANT TO SUBDIVISION ONE OF THIS
SECTION;
(B) THE NUMBER OF VACANT AND ABANDONED PROPERTIES SUBJECT TO SUCH
VACANCY SURCHARGE AND ANY PLANS OF THE CITY TO FACILITATE THEIR REDEVEL-
OPMENT OR ADAPTIVE REUSE; AND
(C) THE AMOUNT OF REVENUE GENERATED FROM SUCH VACANCY SURCHARGE DURING
THE PRECEDING YEAR; AND
(D) THE NUMBER OF PROPERTIES DESIGNATED AS VACANT AND ABANDONED PROP-
ERTY SUBJECT TO SUCH VACANCY SURCHARGE:
(I) AGAINST WHICH SUCH CITY INITIATED TAX FORECLOSURE PROCEEDINGS
PURSUANT TO ARTICLE ELEVEN OF THIS CHAPTER;
(II) FOR WHICH TITLE VESTED IN THE CITY; AND
(III) THAT WERE SUBSEQUENTLY TRANSFERRED, SOLD, OR OTHERWISE DISPOSED
OF BY THE CITY.
§ 2. This act shall take effect immediately and shall be applicable to
all taxable years beginning on and after July 1, 2026.
PART KK
Section 1. Subdivision (jj) of section 1115 of the tax law, as amended
by section 1 of part I of chapter 59 of the laws of 2024, is amended to
read as follows:
(jj) Tangible personal property or services otherwise taxable under
this article sold to a related person shall not be subject to the taxes
imposed by section eleven hundred five of this article or the compensat-
ing use tax imposed under section eleven hundred ten of this article
where the purchaser can show that the following conditions have been met
to the extent they are applicable: (1)(i) the vendor and the purchaser
are referenced as either a "covered company" as described in section
243.2(f) or a "material entity" as described in section 243.2(l) of the
Code of Federal Regulations in a resolution plan that has been submitted
to an agency of the United States for the purpose of satisfying subpara-
graph 1 of paragraph (d) of section one hundred sixty-five of the Dodd-
Frank Wall Street Reform and Consumer Protection Act (the "Act") or any
successor law, or (ii) the vendor and the purchaser are separate legal
entities pursuant to a divestiture directed pursuant to subparagraph 5
of paragraph (d) of section one hundred sixty-five of such act or any
A. 10009--B 112
successor law; (2) the sale would not have occurred between such related
entities were it not for such resolution plan or divestiture; and (3) in
acquiring such property or services, the vendor did not claim an
exemption from the tax imposed by this state or another state based on
the vendor's intent to resell such services or property. A person is
related to another person for purposes of this subdivision if the person
bears a relationship to such person described in section two hundred
sixty-seven of the internal revenue code. The exemption provided by this
subdivision shall not apply to sales made, services rendered, or uses
occurring after June thirtieth, two thousand [twenty-five] TWENTY-EIGHT,
except with respect to sales made, services rendered, or uses occurring
pursuant to binding contracts entered into on or before such date; but
in no case shall such exemption apply after June thirtieth, two thousand
[twenty-eight] THIRTY-ONE.
§ 2. This act shall take effect immediately.
PART LL
Section 1. Section 1115 of the tax law is amended by adding a new
subdivision (mm) to read as follows:
(MM) THE FOLLOWING SHALL BE EXEMPT FROM TAX UNDER THIS ARTICLE: (1)
RECEIPTS FROM THE RETAIL SALE OF, AND CONSIDERATION GIVEN OR CONTRACTED
TO BE GIVEN FOR, OR FOR THE USE OF, COMMERCIAL ENERGY STORAGE SYSTEMS
EQUIPMENT AND THE COSTS OF INSTALLING SUCH SYSTEMS. FOR THE PURPOSES OF
THIS SUBDIVISION, "COMMERCIAL ENERGY STORAGE SYSTEMS EQUIPMENT" SHALL
MEAN AN ARRANGEMENT OR COMBINATION OF COMPONENTS INSTALLED UPON NON-RE-
SIDENTIAL PREMISES THAT STORES ELECTRICITY FOR USE AT A LATER TIME TO
PROVIDE HEATING, COOLING, HOT WATER AND/OR ELECTRICITY.
(2) RECEIPTS FROM THE SALE OF ELECTRICITY BY A PERSON PRIMARILY
ENGAGED IN THE SALE OF ENERGY STORAGE SYSTEM EQUIPMENT AND/OR ELECTRIC-
ITY GENERATED BY SUCH EQUIPMENT PURSUANT TO A WRITTEN AGREEMENT UNDER
WHICH THE ELECTRICITY IS GENERATED BY COMMERCIAL ENERGY SYSTEM EQUIPMENT
THAT IS: (A) OWNED BY A PERSON OTHER THAN THE PURCHASER OF SUCH ELEC-
TRICITY; (B) INSTALLED ON THE NON-RESIDENTIAL PREMISES OF THE PURCHASER
OF SUCH ELECTRICITY; AND (C) USED TO PROVIDE HEATING, COOLING, HOT WATER
OR ELECTRICITY TO SUCH PREMISES.
§ 2. Paragraph 1 of subdivision (a) of section 1210 of the tax law, as
amended by section 5 of part J of chapter 59 of the laws of 2021, is
amended to read as follows:
(1) Either, all of the taxes described in article twenty-eight of this
chapter, at the same uniform rate, as to which taxes all provisions of
the local laws, ordinances or resolutions imposing such taxes shall be
identical, except as to rate and except as otherwise provided, with the
corresponding provisions in such article twenty-eight, including the
definition and exemption provisions of such article, so far as the
provisions of such article twenty-eight can be made applicable to the
taxes imposed by such city or county and with such limitations and
special provisions as are set forth in this article. The taxes author-
ized under this subdivision may not be imposed by a city or county
unless the local law, ordinance or resolution imposes such taxes so as
to include all portions and all types of receipts, charges or rents,
subject to state tax under sections eleven hundred five and eleven
hundred ten of this chapter, except as otherwise provided. Notwith-
standing the foregoing, a tax imposed by a city or county authorized
under this subdivision shall not include the tax imposed on charges for
admission to race tracks and simulcast facilities under subdivision (f)
A. 10009--B 113
of section eleven hundred five of this chapter. (i) Any local law, ordi-
nance or resolution enacted by any city of less than one million or by
any county or school district, imposing the taxes authorized by this
subdivision, shall, notwithstanding any provision of law to the contra-
ry, exclude from the operation of such local taxes all sales of tangible
personal property for use or consumption directly and predominantly in
the production of tangible personal property, gas, electricity, refrig-
eration or steam, for sale, by manufacturing, processing, generating,
assembly, refining, mining or extracting; and all sales of tangible
personal property for use or consumption predominantly either in the
production of tangible personal property, for sale, by farming or in a
commercial horse boarding operation, or in both; and all sales of fuel
sold for use in commercial aircraft and general aviation aircraft; and,
unless such city, county or school district elects otherwise, shall omit
the provision for credit or refund contained in clause six of subdivi-
sion (a) or subdivision (d) of section eleven hundred nineteen of this
chapter. (ii) Any local law, ordinance or resolution enacted by any
city, county or school district, imposing the taxes authorized by this
subdivision, shall omit the residential solar energy systems equipment
and electricity exemption provided for in subdivision (ee), the commer-
cial solar energy systems equipment and electricity exemption provided
for in subdivision (ii), the commercial fuel cell electricity generating
systems equipment and electricity generated by such equipment exemption
provided for in subdivision (kk), THE COMMERCIAL ENERGY STORAGE SYSTEMS
EQUIPMENT AND ELECTRICITY EXEMPTION PROVIDED FOR IN SUBDIVISION (MM) and
the clothing and footwear exemption provided for in paragraph thirty of
subdivision (a) of section eleven hundred fifteen of this chapter,
unless such city, county or school district elects otherwise as to such
residential solar energy systems equipment and electricity exemption,
such commercial solar energy systems equipment and electricity
exemption, commercial fuel cell electricity generating systems equipment
and electricity generated by such equipment exemption, SUCH COMMERCIAL
ENERGY STORAGE SYSTEMS EQUIPMENT AND ELECTRICITY EXEMPTION, or such
clothing and footwear exemption.
§ 3. Subdivision (d) of section 1210 of the tax law, as amended by
section 4 of part WW of chapter 60 of the laws of 2016, is amended to
read as follows:
(d) A local law, ordinance or resolution imposing any tax pursuant to
this section, increasing or decreasing the rate of such tax, repealing
or suspending such tax, exempting from such tax the energy sources and
services described in paragraph three of subdivision (a) or of subdivi-
sion (b) of this section or changing the rate of tax imposed on such
energy sources and services or providing for the credit or refund
described in clause six of subdivision (a) of section eleven hundred
nineteen of this chapter, or electing or repealing the exemption for
residential solar equipment and electricity in subdivision (ee) of
section eleven hundred fifteen of this article, or the exemption for
commercial solar equipment and electricity in subdivision (ii) of
section eleven hundred fifteen of this article, or electing or repealing
the exemption for commercial fuel cell electricity generating systems
equipment and electricity generated by such equipment in subdivision
(kk) of section eleven hundred fifteen of this article, OR THE EXEMPTION
FOR COMMERCIAL ENERGY STORAGE EQUIPMENT AND ELECTRICITY IN SUBDIVISION
(MM) OF SECTION ELEVEN HUNDRED FIFTEEN OF THIS ARTICLE must go into
effect only on one of the following dates: March first, June first,
September first or December first; provided, that a local law, ordinance
A. 10009--B 114
or resolution providing for the exemption described in paragraph thirty
of subdivision (a) of section eleven hundred fifteen of this chapter or
repealing any such exemption or a local law, ordinance or resolution
providing for a refund or credit described in subdivision (d) of section
eleven hundred nineteen of this chapter or repealing such provision so
provided must go into effect only on March first. No such local law,
ordinance or resolution shall be effective unless a certified copy of
such law, ordinance or resolution is mailed by registered or certified
mail to the commissioner at the commissioner's office in Albany at least
ninety days prior to the date it is to become effective. However, the
commissioner may waive and reduce such ninety-day minimum notice
requirement to a mailing of such certified copy by registered or certi-
fied mail within a period of not less than thirty days prior to such
effective date if the commissioner deems such action to be consistent
with the commissioner's duties under section twelve hundred fifty of
this article and the commissioner acts by resolution. Where the
restriction provided for in section twelve hundred twenty-three of this
article as to the effective date of a tax and the notice requirement
provided for therein are applicable and have not been waived, the
restriction and notice requirement in section twelve hundred twenty-
three of this article shall also apply.
§ 4. Subdivision 1-a of section 66-r of the public service law, as
added by section 32 of part O of chapter 58 of the laws of 2024, is
amended to read as follows:
1-a. For the purposes of this section, an "other covered project"
means: (a) any "thermal energy network" as defined by subdivision twen-
ty-nine of section two of this chapter; (b) any offshore wind supply
chain project, including but not limited to port infrastructure, primary
component manufacturing, finished component manufacturing, subassembly
manufacturing, subcomponent manufacturing, or raw material producers, or
a combination thereof receiving direct funding from the New York state
energy research and development authority pursuant to an award under a
New York state energy research and development authority solicitation;
[or] (c) a "major utility transmission facility" as such term is defined
by section one hundred twenty of this chapter or "major electric trans-
mission facility" as defined by article VIII of this chapter; OR (D) ANY
"QUALIFIED ENERGY STORAGE SYSTEM" AS SUCH TERM IS DEFINED BY SUBDIVISION
ONE OF SECTION SEVENTY-FOUR OF THIS ARTICLE, WITH A NAMEPLATE CAPACITY
OF GREATER THAN FIVE MEGAWATTS AND INTERCONNECTED TO THE STATE'S ELEC-
TRICITY GRID.
§ 5. Subdivision 3 of section 66-r of the public service law, as
amended by section 32 of part O of chapter 58 of the laws of 2024, is
amended to read as follows:
3. The commission shall require that the owner of the covered renewa-
ble energy system or other covered project, or a third party acting on
the owner's behalf, as an ongoing condition of any renewable energy
credits agreement OR ENERGY STORAGE CREDITS AGREEMENT with a public
entity, shall stipulate to the fiscal officer that it will enter into
labor peace agreements with any bona fide labor organizations that
either are actively representing employees providing necessary oper-
ations and maintenance services for the renewable energy system at the
time of such agreement or provides notice that it is attempting to
represent any employees in any titles who provide, or who will provide,
necessary operations and maintenance services for the renewable energy
system employed in the state; provided, however, this subdivision shall
not apply to any covered projects defined in paragraph (c) of subdivi-
A. 10009--B 115
sion one-a of this section. The maintenance of such a labor peace
agreement, or agreements, which cover all classes of operations and
maintenance employees, shall be an ongoing material condition of any
continuation of payments under a renewable energy credits agreement OR
ENERGY STORAGE CREDITS AGREEMENT. For purposes of this section "labor
peace agreement" means an agreement between an entity and labor organ-
ization that, at a minimum, protects the state's proprietary interests
by prohibiting labor organizations and members from engaging in picket-
ing, work stoppages, boycotts, and any other economic interference with
the relevant renewable energy system. "Renewable energy credits agree-
ment" shall mean any public entity contract that provides production-
based payments to a renewable energy project as defined in this section.
FOR PURPOSES OF THIS SUBDIVISION, "ENERGY STORAGE CREDITS AGREEMENT"
SHALL MEAN ANY PUBLIC ENTITY CONTRACT THAT PROVIDES INDEX STORAGE CRED-
ITS TO AN ENERGY STORAGE PROJECT AS DEFINED IN THIS SECTION.
§ 6. Subdivision 1 of section 224-d of the labor law, as amended by
section 31 of part O of chapter 58 of the laws of 2024, is amended to
read as follows:
1. For purposes of this section, a "covered renewable energy system"
means (a) a renewable energy system, as such term is defined in section
sixty-six-p of the public service law, with a capacity of one or more
megawatts alternating current and which involves the procurement of
renewable energy credits by a public entity, or a company or corporation
provided in subdivisions twenty-three and twenty-four of section two of
the public service law, or a third party acting on behalf and for the
benefit of a public entity; (b) any "thermal energy network" as defined
by subdivision twenty-nine of section two of the public service law; (c)
any offshore wind supply chain project, including but not limited to
port infrastructure, primary component manufacturing, finished component
manufacturing, subassembly manufacturing, subcomponent manufacturing, or
raw material producers, or a combination thereof receiving direct fund-
ing from the New York state energy research and development authority
pursuant to an award under a New York state energy research and develop-
ment authority solicitation; [or] (d) a "major utility transmission
facility" as such term is defined by section one hundred twenty of the
public service law; OR (E) ANY "QUALIFIED ENERGY STORAGE SYSTEM" AS SUCH
TERM IS DEFINED BY SUBDIVISION ONE OF SECTION SEVENTY-FOUR OF THE PUBLIC
SERVICE LAW, WITH A NAMEPLATE CAPACITY OF ONE OR MORE MEGAWATTS AND
INTERCONNECTED TO THE STATE'S ELECTRICITY GRID, AND WHICH INVOLVES
EITHER (I) THE PROCUREMENT OF ENERGY STORAGE CREDITS BY A PUBLIC ENTITY,
OR A PUBLIC UTILITY COMPANY OR CORPORATION AS DEFINED BY SUBDIVISIONS
TWENTY-THREE AND TWENTY-FOUR OF SECTION TWO OF THE PUBLIC SERVICE LAW,
OR A THIRD PARTY ACTING ON BEHALF AND FOR THE BENEFIT OF A PUBLIC ENTITY
THROUGH A SOLICITATION ISSUED AFTER THE EFFECTIVE DATE OF THE CHAPTER OF
THE LAWS OF TWO THOUSAND TWENTY-SIX THAT AMENDED THIS SUBDIVISION OR
(II) A FINANCIAL INCENTIVE AWARD FOR GRID-CONNECTED ENERGY STORAGE
SYSTEMS ISSUED BY A PUBLIC ENTITY AFTER THE EFFECTIVE DATE OF THE CHAP-
TER OF THE LAWS OF TWO THOUSAND TWENTY-SIX THAT AMENDED THIS
SUBDIVISION.
§ 7. Subdivision 8 of section 224-d of the labor law, as amended by
chapter 37 of the laws of 2026, is amended to read as follows:
8. A covered renewable energy system shall require all contractors and
subcontractors performing construction work to have apprenticeship
agreements, as defined by article twenty-three of this chapter, PROVIDED
THAT A COVERED RENEWABLE ENERGY SYSTEM WILL BE DEEMED TO HAVE SATISFIED
SUCH REQUIREMENT FOR ANY GIVEN YEAR IF IT HAS: (A) COMPLIED WITH THE
A. 10009--B 116
APPRENTICESHIP REQUIREMENTS OF PARAGRAPH EIGHT OF SUBSECTION (B) OF
SECTION FORTY-FIVE OF THE UNITED STATES INTERNAL REVENUE CODE AND ANY
REGULATIONS PROMULGATED THEREUNDER AS OF JANUARY FIRST, TWO THOUSAND
TWENTY-SIX, OR (B) REQUESTED QUALIFIED APPRENTICES FROM AN APPRENTICE-
SHIP PROGRAM REGISTERED WITH THE DEPARTMENT AND (I) SUCH REQUEST HAS
BEEN DENIED, PROVIDED THAT SUCH DENIAL IS NOT THE RESULT OF A REFUSAL BY
THE COVERED RENEWABLE ENERGY SYSTEM OR ANY SUCH CONTRACTORS OR SUBCON-
TRACTORS PERFORMING CONSTRUCTION WORK TO COMPLY WITH THE ESTABLISHED
STANDARDS AND REQUIREMENTS OF SUCH REGISTERED APPRENTICESHIP PROGRAM, OR
(II) THE REGISTERED APPRENTICESHIP PROGRAM FAILS TO RESPOND TO SUCH
REQUEST WITHIN FIVE BUSINESS DAYS AFTER THE DATE ON WHICH SUCH REGIS-
TERED APPRENTICESHIP PROGRAM RECEIVED SUCH REQUEST, and any thermal
energy network covered by this section shall additionally require such
contractors and subcontractors to have agreements with pre-apprentice-
ship direct entry providers registered with the department.
§ 8. This act shall take effect immediately; provided, however, that
the amendments to subdivision 8 of section 224-d of the labor law made
by section seven of this act shall take effect on the same date and in
the same manner as chapter 362 of the laws of 2025, takes effect; and
provided further, that sections one, two, and three of this act shall
expire and be deemed repealed June 1, 2028.
PART MM
Section 1. Section 490 of the tax law is REPEALED.
§ 2. Section 89-h of the state finance law is REPEALED.
§ 3. This act shall take effect June 1, 2026.
PART NN
Section 1. Subdivision 1 of section 115-a of the racing, pari-mutuel
wagering and breeding law, as added by section 1 of part A of chapter 60
of the laws of 2012, is amended to read as follows:
1. In order to provide supplemental funding to support the operations
of the commission, a fee in the amount of ten dollars shall be assessed
and paid upon every horse entered in a pari-mutuel race in New York
state that actually starts in the race. BEGINNING JANUARY FIRST, TWO
THOUSAND TWENTY-SEVEN, AN AMOUNT AS DETERMINED BY THE COMMISSION TO
SUPPORT THE STANDARDBRED DRUG TESTING AND ANTI-DOPING PROGRAM OUTLINED
IN SECTION NINE HUNDRED TWO-A OF THIS CHAPTER SHALL BE ADDED TO SUCH FEE
UPON EVERY STANDARDBRED HORSE ENTERED IN A PARI-MUTUEL RACE IN NEW YORK
STATE THAT ACTUALLY STARTS IN THE RACE. Such fee shall be refunded to
the owner or credited to the owner's account in the event the horse does
not actually start in the race. The commission shall, as a condition of
racing, require any corporation authorized under this chapter to conduct
pari-mutuel betting at a race meeting or races run thereat, to require
that each owner racing a horse shall have placed on deposit at the time
of entry with the horsemen's bookkeeper or similar office of such corpo-
ration the required fee in the amount of ten dollars per horse entered
in a pari-mutuel race. Unless refunded or credited, the total fee amount
collected during the preceding month by the horsemen's bookkeeper or
similar office of such corporation shall be paid to the commission on
the first business day of each month. Payment shall be accompanied by a
report, under oath, showing such information as the commission may
require. A penalty of five percent, and interest at the rate of one
percent per month from the date the report is required to be filed to
A. 10009--B 117
the date of the payment of the fee, shall be payable in case any fee
imposed by this subdivision is not paid when due. If the commission
determines that any fees received by it under this subdivision were paid
in error, the commission may cause the same to be refunded without
interest out of any monies collected hereunder, provided an application
therefor is filed with the commission within one year from the time the
erroneous payment is made.
§ 2. The racing, pari-mutuel wagering and breeding law is amended by
adding a new section 902-a to read as follows:
§ 902-A. STANDARDBRED DRUG TESTING AND ANTI-DOPING PROGRAM. 1.
PROGRAM. THE COMMISSION SHALL ESTABLISH AND ADMINISTER A PROGRAM FOR
THE DETECTION OF PROHIBITED DRUGS, RESTRICTED SUBSTANCES, AND OTHER
FOREIGN SUBSTANCES IN STANDARDBRED HORSES ENTERED TO RACE AT LICENSED
HARNESS TRACKS IN THIS STATE. SUCH PROGRAM SHALL INCLUDE PRE-RACE TEST-
ING, POST-RACE TESTING, AND OUT-OF-COMPETITION TESTING DONE BY THE
COMMISSION OR ITS EMPLOYEES OR REPRESENTATIVES IN ACCORDANCE WITH THIS
SECTION AND REGULATIONS PROMULGATED BY THE COMMISSION.
2. RECURRING ANNUAL EXPENSES. (A) THE COMMISSION SHALL MANDATE AN
ADDITIONAL AMOUNT TO BE ADDED TO START FEES, OUTLINED IN SUBDIVISION ONE
OF SECTION ONE HUNDRED FIFTEEN-A OF THIS CHAPTER, NECESSARY TO COVER
FIFTY PERCENT OF THE COSTS TO SUPPORT THE PROGRAM ESTABLISHED BY THIS
SECTION FOR THE APPLICABLE CALENDAR YEAR.
(B) THE COMMISSION SHALL MANDATE CORPORATIONS OR ASSOCIATIONS AUTHOR-
IZED UNDER THIS CHAPTER TO CONDUCT PARI-MUTUEL BETTING AT A STANDARDBRED
RACE MEETING OR STANDARDBRED RACES RUN THEREAT TO MAKE PAYMENT, OR
PAYMENTS, TO THE RACING REGULATION ACCOUNT IN THE AMOUNT NECESSARY TO
COVER FIFTY PERCENT OF THE COSTS TO SUPPORT THE PROGRAM ESTABLISHED BY
THIS SECTION FOR THE APPLICABLE CALENDAR YEAR. THE COMMISSION SHALL
DETERMINE THE FREQUENCY AND MANNER OF SUCH PAYMENTS.
(C) (I) ON OR BEFORE NOVEMBER FIRST OF THE CALENDAR YEAR PRECEDING THE
APPLICABLE CALENDAR YEAR, THE COMMISSION SHALL NOTICE THE APPLICABLE
ORGANIZATION REPRESENTING AT LEAST FIFTY-ONE PERCENT OF THE OWNERS AND
TRAINERS USING THE FACILITIES OF THE APPLICABLE CORPORATION OR ASSOCI-
ATION AUTHORIZED UNDER THIS CHAPTER TO CONDUCT PARI-MUTUEL BETTING AT A
STANDARDBRED RACE MEETING OR STANDARDBRED RACES RUN THEREAT OF THE ADDI-
TIONAL AMOUNT TO BE INCLUDED IN THE START FEES OUTLINED IN PARAGRAPH (A)
OF THIS SUBDIVISION DURING THE APPLICABLE CALENDAR YEAR.
(II) ON OR BEFORE NOVEMBER FIRST OF THE CALENDAR YEAR PRECEDING THE
APPLICABLE CALENDAR YEAR, THE COMMISSION SHALL NOTICE CORPORATIONS OR
ASSOCIATIONS AUTHORIZED UNDER THIS CHAPTER TO CONDUCT PARI-MUTUEL
BETTING AT A STANDARDBRED RACE MEETING OR STANDARDBRED RACES RUN THEREAT
OF THE AMOUNT, FREQUENCY AND MANNER OF THE PAYMENT OR PAYMENTS OUTLINED
IN PARAGRAPH (B) OF THIS SUBDIVISION DURING THE APPLICABLE CALENDAR
YEAR.
3. PRE-RACE TESTING. (A) BLOOD OR OTHER BIOLOGIC SAMPLES SHALL BE
TAKEN FROM AT LEAST FIFTY PERCENT OF HORSES PROGRAMMED TO RACE, IMME-
DIATELY PRIOR TO THE RACE IN WHICH SUCH HORSE IS PROGRAMMED, AT A TIME
AND LOCATION SPECIFIED BY THE COMMISSION. HORSES SELECTED FOR SUCH
SAMPLES SHALL BE SELECTED AT RANDOM BY THE COMMISSION OR ITS EMPLOYEES
OR REPRESENTATIVES.
(B) THE TRAINER OR SUCH TRAINER'S REPRESENTATIVE SHALL ACCOMPANY SUCH
HORSE AT THE PRESCRIBED TIME AND LOCATION AND SHALL MANAGE THE HORSE AS
DIRECTED. WILLFUL FAILURE TO BE PRESENT AT, REFUSAL TO PERMIT, OR INTER-
FERENCE WITH THE TAKING OF ANY SAMPLE PURSUANT TO THIS SUBDIVISION SHALL
CONSTITUTE A VIOLATION OF THIS SECTION AND MAY SUBJECT THE PERSON
A. 10009--B 118
RESPONSIBLE TO DISCIPLINARY ACTION BY THE COMMISSION PURSUANT TO THIS
CHAPTER.
(C) BLOOD SAMPLES SHALL BE TAKEN BY A COMMISSION VETERINARIAN OR,
UNDER SUCH VETERINARIAN'S SUPERVISION, BY A VETERINARIAN LICENSED TO
PRACTICE IN THIS STATE.
(D) URINE SAMPLES MAY BE COLLECTED BY A COMMISSION INSPECTOR OR OTHER
PERSON AUTHORIZED BY THE COMMISSION.
(E) WHENEVER A LABORATORY TEST INDICATES THE PRESENCE OF A PROHIBITED
DRUG, RESTRICTED SUBSTANCE, OR FOREIGN SUBSTANCE, OR A SUBSTANCE THE
IDENTITY OF WHICH CANNOT BE ESTABLISHED, IN A SAMPLE TAKEN FROM A HORSE,
THE JUDGES SHALL SCRATCH THE HORSE FROM THE RACE PENDING CONFIRMATORY
TESTING AND MAY TAKE SUCH FURTHER ACTION AS DEEMED APPROPRIATE.
(F) UNLESS SPECIFICALLY PERMITTED IN WRITING BY THE PRESIDING JUDGE, A
HORSE FROM WHICH A PRE-RACE SAMPLE HAS BEEN TAKEN SHALL NOT BE REMOVED
FROM THE GROUNDS EXCEPT FOR TRANSPORT TO THE RACECOURSE WHERE SUCH HORSE
IS SCHEDULED TO RACE IF SUCH RACECOURSE IS NOT LOCATED ON THE GROUNDS
WHERE THE SAMPLE WAS TAKEN.
4. POST-RACE TESTING. (A) THE WINNER AND AT LEAST ONE OTHER HORSE
DESIGNATED BY THE JUDGES SHALL BE TESTED IMMEDIATELY AFTER EACH RACE.
(B) BLOOD, URINE, AND SUCH OTHER BIOLOGIC SAMPLES AS MAY BE REQUIRED
SHALL BE ATTEMPTED TO BE TAKEN FROM EACH DESIGNATED HORSE AT A TIME AND
IN AN ENCLOSURE SPECIFIED BY THE COMMISSION OR ITS REPRESENTATIVE, UNTIL
SUCH HORSE IS RELEASED BY THE COMMISSION VETERINARIAN.
(C) THE TRAINER OR SUCH TRAINER'S REPRESENTATIVE SHALL ACCOMPANY THE
HORSE AT THE PRESCRIBED TIME AND LOCATION AND SHALL MANAGE THE HORSE AS
DIRECTED. WILLFUL FAILURE TO COOPERATE IN THE TAKING OF ANY SUCH SAMPLE
OR INTERFERENCE THEREWITH SHALL CONSTITUTE A VIOLATION OF THIS SECTION
AND MAY SUBJECT THE PERSON RESPONSIBLE TO DISCIPLINARY ACTION BY THE
COMMISSION PURSUANT TO THIS CHAPTER.
(D) BLOOD SAMPLES SHALL BE TAKEN BY THE COMMISSION VETERINARIAN OR,
UNDER SUCH VETERINARIAN'S SUPERVISION, BY A VETERINARIAN LICENSED TO
PRACTICE IN THIS STATE.
(E) URINE SAMPLES MAY BE COLLECTED BY A COMMISSION INSPECTOR OR OTHER
PERSON AUTHORIZED BY THE COMMISSION.
5. COMMISSION TESTING AUTHORITY. (A) THE JUDGES MAY REQUIRE AT ANY
TIME THAT ANY HORSE BE SENT TO THE TESTING ENCLOSURE FOR THE TAKING OF
BLOOD, URINE OR OTHER BIOLOGIC SAMPLES AND FOR SUCH EXAMINATIONS AS MAY
BE DIRECTED.
(B) THE COMMISSION VETERINARIAN, WHEN DIRECTED BY THE JUDGES, MAY
REQUIRE THE TAKING OF SUCH SAMPLES FROM ANY HORSE STABLED AT A LICENSED
HARNESS TRACK DURING A RACE MEETING.
(C) THE JUDGES, COMMISSION VETERINARIAN OR THEIR DESIGNEES MAY TAKE
SAMPLES FOR ANALYSIS OF ANY MEDICINE OR OTHER MATERIALS FOUND IN STABLES
OR ELSEWHERE ON THE GROUNDS OF A LICENSED HARNESS TRACK OR IN THE
POSSESSION OF ANY PERSON CONNECTED WITH RACING.
6. DRUG DETECTION FACILITIES. (A) EACH LICENSED HARNESS RACING CORPO-
RATION OR ASSOCIATION SHALL PROVIDE THE COMMISSION WITH ACCESS TO EXIST-
ING FACILITIES AND LOCATIONS, WHERE FEASIBLE AND APPROPRIATE, FOR
PURPOSES OF CONDUCTING THE TESTING REQUIRED BY THIS SECTION.
(B) NO PERSON SHALL ENTER OR BE PRESENT IN ANY ENCLOSURE DESIGNATED BY
THE COMMISSION FOR THE TAKING OR EXAMINATION OF SAMPLES FROM HORSES
EXCEPT COMMISSION STAFF, THE JUDGES, THE CUSTODIANS OF THE HORSE, OR
SUCH OTHER PERSONS AS MAY BE AUTHORIZED BY THE COMMISSION.
7. POSSESSION OF HYPODERMIC EQUIPMENT AND CONTROLLED SUBSTANCES. (A)
NO PERSON OTHER THAN A COMMISSION VETERINARIAN, TRACK VETERINARIAN OR
A. 10009--B 119
VETERINARIAN LICENSED BY THE COMMISSION SHALL POSSESS ON THE PREMISES OF
A LICENSED HARNESS TRACK:
(I) ANY EQUIPMENT CAPABLE OF HYPODERMIC INJECTION OR OTHER INFUSION
INTO A HORSE OR ANY VIAL, BOTTLE, OR CARTRIDGE DESIGNED AND USABLE FOR
SUCH PURPOSES; OR
(II) ANY CONTROLLED SUBSTANCE, LISTED IN SCHEDULE I THROUGH IV OF
UNITED STATES CODE, TITLE 21 (FOOD AND DRUGS) SECTION 812, OR ANY DRUG
WHICH HAS NOT BEEN APPROVED FOR USE IN THE HORSE BY THE FEDERAL FOOD AND
DRUG ADMINISTRATION.
(B) THIS SUBDIVISION SHALL NOT APPLY TO LINIMENTS, ANTISEPTICS, OINT-
MENTS, LEG PAINTS, WASHES AND OTHER PRODUCTS COMMONLY USED IN THE DAILY
CARE OF HORSES.
(C) THIS SUBDIVISION SHALL NOT APPLY TO A PERSON POSSESSING A
CONTROLLED SUBSTANCE OR HYPODERMIC SYRINGE PURSUANT TO A PRESCRIPTION
FOR SUCH PERSON'S OWN MEDICAL USE, SUBJECT TO REGULATION BY THE COMMIS-
SION.
(D) ALL BOTTLES AND OTHER CONTAINERS KEPT IN OR ABOUT ANY TACK ROOM OR
ELSEWHERE ON THE PREMISES OF A LICENSED HARNESS RACING TRACK SHALL BEAR
A LABEL CLEARLY IDENTIFYING THEIR CONTENTS, INCLUDING THE NAME OF EACH
ACTIVE INGREDIENT, UNLESS SUCH CONTAINER BEARS A VETERINARIAN'S OR
PHARMACIST'S PRESCRIPTION LABEL.
(E) LICENSED PARTICIPANTS SHALL BE DEEMED TO CONSENT TO INSPECTION BY
THE COMMISSION OR ITS DESIGNEES OF STABLES, TACK ROOMS, VEHICLES, AND
OTHER RACING-RELATED PREMISES LOCATED ON THE GROUNDS OF A LICENSED
HARNESS TRACK FOR THE PURPOSE OF ENFORCING THIS SECTION.
8. VETERINARY RECORDS. (A) EVERY VETERINARIAN LICENSED BY THE COMMIS-
SION WHO TREATS HORSES PARTICIPATING IN HARNESS RACE MEETINGS IN THIS
STATE SHALL MAINTAIN WRITTEN RECORDS:
(I) THE NAME AND IDENTIFYING INFORMATION OF THE HORSE TREATED;
(II) THE NATURE OF THE HORSE'S AILMENT;
(III) THE TREATMENT PRESCRIBED OR ADMINISTERED; AND
(IV) THE DATE AND TIME OF SUCH TREATMENT.
(B) SUCH RECORDS SHALL BE PRODUCED UPON REQUEST OF THE COMMISSION OR
ITS REPRESENTATIVES.
(C) BEFORE ADMINISTERING OR PRESCRIBING ANY DRUG OR RESTRICTED
SUBSTANCE FOR A HORSE, A VETERINARIAN SHALL DETERMINE WHETHER SUCH HORSE
HAS BEEN ENTERED TO RACE AND SHALL NOT ADMINISTER ANY DRUG OR RESTRICTED
SUBSTANCE IN VIOLATION OF THE COMMISSION'S MEDICATION RESTRICTIONS,
EXCEPT IN CASES OF EMERGENCY INVOLVING THE LIFE OR HEALTH OF THE HORSE,
IN WHICH CASE THE VETERINARIAN SHALL PROMPTLY NOTIFY THE COMMISSION
VETERINARIAN OR JUDGES.
9. OUT-OF-COMPETITION TESTING AUTHORIZED. (A) ANY HORSE REASONABLY
BELIEVED TO BE INTENDED TO COMPETE IN HARNESS RACING IN THIS STATE MAY
BE SUBJECT TO OUT-OF-COMPETITION TESTING.
(B) HORSES MAY BE SELECTED TO BE TESTED AT RANDOM, FOR CAUSE OR AS
OTHERWISE DETERMINED BY THE COMMISSION.
(C) THE COMMISSION MAY TAKE BLOOD, URINE, HAIR OR OTHER BIOLOGIC
SAMPLES FROM SUCH HORSES AT REASONABLE TIMES FOR THE PURPOSE OF ENFORC-
ING THE COMMISSION'S DRUG TESTING AND ANTI-DOPING RULES.
10. DISQUALIFICATION. A HORSE WITH RESPECT TO WHICH THERE HAS BEEN A
VIOLATION OF THIS SECTION OR THE COMMISSION'S STANDARDBRED DRUG TESTING
AND ANTI-DOPING RULES, OR FROM WHICH A SAMPLE HAS RESULTED IN A POSITIVE
TEST, MAY BE DISQUALIFIED FROM THE RACE AND FROM ANY SHARE OF THE PURSE.
SUCH SHARE SHALL BE REDISTRIBUTED AMONG THE REMAINING HORSES ENTITLED
THERETO. THE PARI-MUTUEL DISTRIBUTION SHALL BE DEEMED FINAL UPON THE
DECLARATION OF THE RACE AS OFFICIAL.
A. 10009--B 120
11. REQUALIFICATION. A HORSE THAT HAS TESTED POSITIVE FOR A PROHIBITED
DRUG OR RESTRICTED SUBSTANCE SHALL NOT START IN ANY SUBSEQUENT RACE
UNTIL SUCH HORSE HAS SUCCESSFULLY COMPLETED A QUALIFYING WORKOUT SATIS-
FACTORY TO THE JUDGES AND HAS TESTED NEGATIVE IN ACCORDANCE WITH COMMIS-
SION REGULATIONS.
12. REGULATIONS. THE COMMISSION SHALL PROMULGATE REGULATIONS NECESSARY
TO IMPLEMENT THIS SECTION, INCLUDING BUT NOT LIMITED TO REGULATIONS
DEFINING PROHIBITED DRUGS, RESTRICTED SUBSTANCES, AND FOREIGN SUBSTANCES
AND ESTABLISHING PROCEDURES FOR TESTING, LABORATORY ANALYSIS, AND
ENFORCEMENT.
13. SCOPE. NOTHING IN THIS SECTION SHALL BE CONSTRUED TO APPLY TO
THOROUGHBRED HORSES, THOROUGHBRED TRACKS, OR THOROUGHBRED RACES.
§ 3. This act shall take effect immediately.
PART OO
Section 1. Subsection (b) of section 870 of the tax law, as added by
section 1 of subpart B of part MM of chapter 59 of the laws of 2022, is
amended to read as follows:
(b) Limitation on credit. The aggregate amount of credits claimed by
all partners, members or shareholders of an electing city partnership or
an electing city resident S corporation pursuant to subsection (a) of
this section shall not exceed SEVENTY-FIVE PERCENT OF the tax due under
section eight hundred sixty-nine of this article from such electing city
partnership or electing city resident S corporation for the taxable
year.
§ 2. Paragraphs 2 and 5 of subsection (g) of section 1310 of the tax
law, as added by section 3 of subpart B of part MM of chapter 59 of the
laws of 2022, are amended to read as follows:
(2) The amount of the credit shall be equal to SEVENTY-FIVE PERCENT OF
the partner's, member's or shareholder's direct share of the city pass-
through entity tax.
(5) Limitation on credit. No credit shall be allowed to a taxpayer
under this subsection unless the electing city partnership or electing
city resident S corporation provided sufficient information to identify
such taxpayer on its city pass-through entity tax return as required
under paragraph two of subsection (c) of section eight hundred seventy-
two of this chapter for an electing city partnership or paragraph two of
subsection (d) of section eight hundred seventy-two of this chapter for
an electing city resident S corporation. The credit allowed to a taxpay-
er under this subsection shall not exceed SEVENTY-FIVE PERCENT OF the
direct share of city pass-through entity tax reported by such electing
city partnership or electing city resident S corporation attributable to
such taxpayer on such electing city partnership or electing city resi-
dent S corporation's return filed pursuant to section eight hundred
seventy-two of this chapter.
§ 3. Paragraphs 2 and 5 of subdivision (g) of section 11-1706 of the
administrative code of the city of New York, as added by section 11 of
subpart B of part MM of chapter 59 of the laws of 2022, are amended to
read as follows:
(2) The amount of the credit shall be equal to SEVENTY-FIVE PERCENT OF
the partner's, member's or shareholder's direct share of the city pass-
through entity tax.
(5) Limitation on credit. No credit shall be allowed to a taxpayer
under this subdivision unless the electing city partnership or electing
city resident S corporation provided sufficient information to identify
A. 10009--B 121
such taxpayer on its city pass-through entity tax return as required
under paragraph two of subsection (c) of section eight hundred seventy-
two of the tax law for an electing city partnership or paragraph two of
subsection (d) of section eight hundred seventy-two of the tax law for
an electing city resident S corporation. The credit allowed to a taxpay-
er under this subdivision shall not exceed SEVENTY-FIVE PERCENT OF the
direct share of city pass-through entity tax reported by such electing
city partnership or electing city resident S corporation attributable to
such taxpayer on such electing city partnership's or such electing city
resident S corporation's return filed pursuant to section eight hundred
seventy-two of the tax law.
§ 4. This act shall take effect June 1, 2026.
PART PP
Section 1. Subdivision (a) of section 101 of section 2 of chapter 772
of the laws of 1966, relating to enabling any city having a population
of one million or more to raise tax revenue, is amended to read as
follows:
(a) General.--A tax at the rate of four percent is hereby imposed for
each taxable year, beginning with taxable years ending after January
first, nineteen hundred sixty-six, on the unincorporated business taxa-
ble income of every unincorporated business wholly or partly carried on
within the city, PROVIDED THAT, FOR TAXABLE YEARS BEGINNING ON OR AFTER
JANUARY FIRST, TWO THOUSAND TWENTY-SIX, FOR ANY PORTION OF SUCH UNINCOR-
PORATED BUSINESS TAXABLE INCOME GREATER THAN FIVE MILLION DOLLARS, SUCH
TAX SHALL BE AT A RATE OF FOUR AND FOUR-TENTHS PERCENT. This tax shall
be in addition to any other taxes imposed.
§ 2. Subdivision (a) of section 11-503 of the administrative code of
the city of New York is amended to read as follows:
(a) General. A tax at the rate of four percent is hereby imposed for
each taxable year, beginning with taxable years ending after January
first, nineteen hundred sixty-six, on the unincorporated business taxa-
ble income of every unincorporated business wholly or partly carried on
within the city, PROVIDED THAT, FOR TAXABLE YEARS BEGINNING ON OR AFTER
JANUARY FIRST, TWO THOUSAND TWENTY-SIX, FOR ANY PORTION OF SUCH UNINCOR-
PORATED BUSINESS TAXABLE INCOME GREATER THAN FIVE MILLION DOLLARS, SUCH
TAX SHALL BE AT A RATE OF FOUR AND FOUR-TENTHS PERCENT. This tax shall
be in addition to any other taxes imposed.
§ 3. Clauses 1 and 3 of subparagraph (a) of paragraph E of subdivision
1 of section 11-604 of the administrative code of the city of New York,
as amended by chapter 345 of the laws of 2023, is amended to read as
follows:
(1) an amount computed, for taxable years beginning before nineteen
hundred eighty-seven, at the rate of nine per centum, [and] for taxable
years beginning after nineteen hundred eighty-six AND BEFORE JANUARY
FIRST, TWO THOUSAND TWENTY-SIX, at the rate of eight and eighty-five
one-hundredths per centum, AND FOR TAXABLE YEARS BEGINNING ON OR AFTER
JANUARY FIRST, TWO THOUSAND TWENTY-SIX, AT THE RATE OF TEN AND SIXTY-TWO
ONE-HUNDREDTHS PER CENTUM, of its entire net income or the portion of
such entire net income allocated within the city as hereinafter
provided, subject to any modification required by paragraphs (d) and (e)
of subdivision three of this section,
(3) an amount computed, for taxable years beginning before nineteen
hundred eighty-seven, at the rate of nine per centum, [and] for taxable
years beginning after nineteen hundred eighty-six AND BEFORE JANUARY
A. 10009--B 122
FIRST, TWO THOUSAND TWENTY-SIX, at the rate of eight and eighty-five
one-hundredths per centum, AND FOR TAXABLE YEARS BEGINNING ON OR AFTER
JANUARY FIRST, TWO THOUSAND TWENTY-SIX, AT THE RATE OF TEN AND SIXTY-TWO
ONE-HUNDREDTHS PER CENTUM, on thirty per centum of the taxpayer's entire
net income plus salaries and other compensation paid to the taxpayer's
elected or appointed officers and to every stockholder owning in excess
of five per centum of its issued capital stock minus fifteen thousand
dollars (subject to proration as hereinafter provided) and any net loss
for the reported year, or on the portion of any such sum allocated with-
in the city as hereinafter provided for the allocation of entire net
income, subject to any modification required by paragraphs (d) and (e)
of subdivision three of this section, provided, however, that for taxa-
ble years beginning on or after July first, nineteen hundred ninety-six,
the provisions of paragraph H of this subdivision shall apply for
purposes of the computation under this clause, or
§ 4. The opening paragraph of subparagraph 2 of paragraph (a) of
subdivision 18 of section 11-604 of the administrative code of the city
of New York, as amended by chapter 128 of the laws of 1996, is amended
to read as follows:
The amount determined in this subparagraph is the product of (A) the
excess of (i) the tax computed under clause one of subparagraph (a) of
paragraph E of subdivision one of this section, without allowance of any
credits allowed by this section, over (ii) the tax so computed, deter-
mined as if the corporation had no such distributive share or guaranteed
payments with respect to the unincorporated business, and (B) a frac-
tion, the numerator of which is four and the denominator of which is
eight and eighty-five one hundredths, provided, however, THAT FOR A
TAXABLE YEAR BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND TWENTY-
SIX, SUCH DENOMINATOR SHALL BE EQUAL TO TEN AND SIXTY-TWO ONE-HUN-
DREDTHS, AND PROVIDED FURTHER that the amounts computed in clauses (i)
and (ii) of this subparagraph shall be computed with the following
modifications:
§ 5. Subparagraph 1 of paragraph (b) of subdivision 18 of section
11-604 of the administrative code of the city of New York, as amended by
chapter 128 of the laws of 1996, is amended to read as follows:
(1) Notwithstanding anything to the contrary in paragraph (a) of this
subdivision, in the case of a corporation that, before the application
of this subdivision or any other credit allowed by this section, is
liable for the tax on entire net income under clause one of subparagraph
(a) of paragraph E of subdivision one of this section, the credit or the
sum of the credits that may be taken by such corporation for a taxable
year under this subdivision with respect to an unincorporated business
or unincorporated businesses in which it is a partner shall not exceed
the tax so computed, without allowance of any credits allowed by this
section, multiplied by a fraction the numerator of which is four and the
denominator of which is eight and eighty-five one hundredths, PROVIDED,
HOWEVER, THAT FOR A TAXABLE YEAR BEGINNING ON OR AFTER JANUARY FIRST,
TWO THOUSAND TWENTY-SIX, SUCH DENOMINATOR SHALL BE EQUAL TO TEN AND
SIXTY-TWO ONE-HUNDREDTHS. If the credit allowed under this subdivision
or the sum of such credits exceeds the product of such tax and such
fraction, the amount of the excess may be carried forward, in order, to
each of the seven immediately succeeding taxable years and, to the
extent not previously taken, shall be allowed as a credit in each of
such years. In applying the provisions of the preceding sentence, the
credit determined for the taxable year under paragraph (a) of this
subdivision shall be taken before taking any credit carryforward pursu-
A. 10009--B 123
ant to this paragraph and the credit carryforward attributable to the
earliest taxable year shall be taken before taking a credit carryforward
attributable to a subsequent taxable year.
§ 6. Subdivision (a) of section 11-643.5 of the administrative code of
the city of New York, as added by local law number 37 of the city of New
York for the year 1986, is amended to read as follows:
(a) Basic tax. Nine percent of the taxpayer's entire net income, or
the portion thereof allocated to the city, for the taxable year or part
thereof, PROVIDED THAT, FOR A TAXABLE YEAR BEGINNING ON OR AFTER JANUARY
FIRST, TWO THOUSAND TWENTY-SIX, OR PART THEREOF, SUCH BASIC TAX SHALL BE
EQUAL TO TEN AND EIGHT-TENTHS PERCENT OF THE TAXPAYER'S ENTIRE NET
INCOME, OR THE PORTION THEREOF ALLOCATED TO THE CITY.
§ 7. The opening paragraph of paragraph 2 of subdivision (a) of
section 11-643.8 of the administrative code of the city of New York, as
amended by chapter 128 of the laws of 1996, is amended to read as
follows:
The amount determined in this paragraph is the product of (A) the
excess of (i) the basic tax computed pursuant to subdivision (a) of
section 11-643.5 of this part, without allowance of any credits allowed
by this part, over (ii) the basic tax so computed, determined as if the
banking corporation had no such distributive share or guaranteed
payments with respect to the unincorporated business, and (B) a frac-
tion, the numerator of which is four and the denominator of which is
nine, provided, however, THAT FOR A TAXABLE YEAR BEGINNING ON OR AFTER
JANUARY FIRST, TWO THOUSAND TWENTY-SIX, SUCH DENOMINATOR SHALL BE EQUAL
TO TEN AND EIGHT-TENTHS, AND PROVIDED FURTHER that the amounts computed
in clauses (i) and (ii) of this paragraph shall be computed with the
following modifications:
§ 8. Paragraph 1 of subdivision (b) of section 11-643.8 of the admin-
istrative code of the city of New York, as amended by chapter 128 of the
laws of 1996, is amended to read as follows:
(1) Notwithstanding anything to the contrary in subdivision (a) of
this section, in the case of a banking corporation that, before the
application of this section or any other credit allowed by this part, is
liable for the basic tax computed under subdivision (a) of section
11-643.5 of this part, the credit or the sum of the credits that may be
taken by such banking corporation for a taxable year under this section
with respect to an unincorporated business or unincorporated businesses
in which it is a partner shall not exceed the tax so computed, without
allowance of any credits allowed by this part, multiplied by a fraction
the numerator of which is four and the denominator of which is nine,
PROVIDED, HOWEVER, THAT FOR A TAXABLE YEAR BEGINNING ON OR AFTER JANUARY
FIRST, TWO THOUSAND TWENTY-SIX, SUCH DENOMINATOR SHALL BE EQUAL TO TEN
AND EIGHT-TENTHS. If the credit allowed under this subdivision or the
sum of such credits exceeds the product of such tax and such fraction,
the amount of the excess may be carried forward, in order, to each of
the seven immediately succeeding taxable years and, to the extent not
previously taken, shall be allowed as a credit in each of such years. In
applying the provisions of the preceding sentence, the credit determined
for the taxable year under subdivision (a) of this section shall be
taken before taking any credit carryforward pursuant to this paragraph
and the credit carryforward attributable to the earliest taxable year
shall be taken before taking a credit carryforward attributable to a
subsequent taxable year.
§ 9. Clause (i) of subparagraph 1 of paragraph (e) of subdivision 1 of
section 11-654 of the administrative code of the city of New York, as
A. 10009--B 124
added by section 1 of part D of chapter 60 of the laws of 2015, is
amended to read as follows:
(i) an amount computed on its business income or the portion of such
business income allocated within the city as hereinafter provided,
subject to the application of paragraphs (j) and (k) of this subdivision
and any modification required by paragraphs (d) and (e) of subdivision
three of this section, at the rate of (1) FOR A TAXABLE YEAR BEGINNING
BEFORE JANUARY FIRST, TWO THOUSAND TWENTY-SIX, nine per centum for
financial corporations, as defined in this clause, AND FOR A TAXABLE
YEAR BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND TWENTY-SIX, TEN
AND EIGHT-TENTHS PER CENTUM FOR FINANCIAL CORPORATIONS, or (2) FOR A
TAXABLE YEAR BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND TWENTY-SIX,
eight and eighty-five one hundredths per centum for all other corpo-
rations, AND FOR A TAXABLE YEAR BEGINNING ON OR AFTER JANUARY FIRST, TWO
THOUSAND TWENTY-SIX, TEN AND SIXTY-TWO ONE-HUNDREDTHS PER CENTUM FOR ALL
OTHER CORPORATIONS. For purposes of this clause, "financial corporation"
means a corporation or, if the corporation is included in a combined
group, a combined group, that (A) has total assets reflected on its
balance sheet at the end of its taxable year in excess of one hundred
billion dollars, computed under generally accepted accounting principles
and (B)(I) allocates more than fifty percent of the receipts included in
the denominator of its receipts fraction, determined under section
11-654.2 of this subchapter, pursuant to subdivision five of section
11-654.2 of this subchapter for its taxable year, or (II) is itself or
is included in a combined group in which more than fifty percent of the
total assets reflected on its balance sheet at the end of its taxable
year are held by one or more corporations that are classified as (a)
registered under state law as a bank holding company or registered under
the Federal Bank Holding Company Act of 1956 (12 U.S.C. § 1841, et seq.,
as amended), or registered as a savings and loan holding company under
the Federal National Housing Act (12 U.S.C. 1701, as amended), (b) a
national bank organized and existing as a national bank association
pursuant to the provisions of the National Bank Act, 12 U.S.C. 21 et.
seq., (c) a savings association or federal savings bank as defined in
the Federal Deposit Insurance Act, 12 U.S.C. § 1813(b)(1), (d) a bank,
savings association, or thrift institution incorporated or organized
under the laws of any state, (e) a corporation organized under the
provisions of 12 U.S.C. §§ 611 to 631, (f) an agency or branch or a
foreign depository as defined in 12 U.S.C. § 3101, (g) a registered
securities or commodities broker or dealer registered as such by the
securities and exchange commission or the commodities futures trading
commission, which shall include an OTC derivatives dealer as defined
under regulations of the securities and exchange commission at title 17,
part 240, section 3b-12 of the code of federal regulations (17 CFR
240.3b-12), or (h) any corporation whose voting stock is more than fifty
percent owned, directly or indirectly, by any person or business entity
described in subitems (a) through (g) of this item, other than an insur-
ance company taxable under article thirty-three of the tax law; or
§ 10. Subparagraphs 2 and 3 of paragraph (j) of subdivision 1 of
section 11-654 of the administrative code of the city of New York, as
added by section 1 of part D of chapter 60 of the laws of 2015, are
amended to read as follows:
(2) Subject to subparagraph three of this paragraph, if the amount of
business income allocated within the city as hereinafter provided is one
million dollars or greater but less than one million five hundred thou-
sand dollars, the amount computed in clause (i) of subparagraph one of
A. 10009--B 125
paragraph (e) of this subdivision shall be at the rate of (i) six and
five-tenths per centum, plus (ii) [two and thirty-five one-hundredths
per centum] A GENERAL SCALING FACTOR multiplied by a fraction the numer-
ator of which is allocated business income less one million dollars and
the denominator of which is five hundred thousand dollars, of the amount
of business income allocated within the city as hereinafter provided,
subject to any modification required by paragraphs (d) and (e) of subdi-
vision three of this section;
(3) Provided, however, notwithstanding anything to the contrary, if
the amount of business income before allocation is two million dollars
or greater but less than three million dollars, the rate of tax provided
for in this paragraph shall not be less than (i) six and five-tenths per
centum, plus (ii) [two and thirty-five one-hundredths per centum] A
GENERAL SCALING FACTOR multiplied by a fraction the numerator of which
is business income before allocation less two million dollars and the
denominator of which is one million dollars, and provided, however,
notwithstanding anything to the contrary, if the amount of business
income before allocation is three million dollars or greater, the rate
of tax shall be eight and eighty-five one-hundredths percentum FOR A
TAXABLE YEAR BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND TWENTY-SIX,
AND TEN AND SIXTY-TWO ONE-HUNDREDTHS PER CENTUM FOR A TAXABLE YEAR
BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND TWENTY-SIX, or, in the
case of a financial corporation, as defined in clause (i) of subpara-
graph one of paragraph (e) of THIS subdivision [one of section 11-654],
if the amount of business income before allocation is three million
dollars or greater the rate of tax shall be nine per centum FOR A TAXA-
BLE YEAR BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND TWENTY-SIX, AND
TEN AND EIGHT-TENTHS PER CENTUM FOR A TAXABLE YEAR BEGINNING ON OR AFTER
JANUARY FIRST, TWO THOUSAND TWENTY-SIX. FOR THE PURPOSES OF THIS SUBPAR-
AGRAPH AND SUBPARAGRAPH TWO OF THIS PARAGRAPH, THE TERM "GENERAL SCALING
FACTOR" MEANS A VALUE EQUAL TO TWO AND THIRTY-FIVE ONE-HUNDREDTHS PER
CENTUM FOR A TAXABLE YEAR BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND
TWENTY-SIX, OR A VALUE EQUAL TO FOUR AND TWELVE ONE-HUNDREDTHS PER
CENTUM FOR A TAXABLE YEAR BEGINNING ON OR AFTER JANUARY FIRST, TWO THOU-
SAND TWENTY-SIX.
§ 11. Subparagraphs 2 and 3 of paragraph (k) of subdivision 1 of
section 11-654 of the administrative code of the city of New York, as
added by section 1 of part D of chapter 60 of the laws of 2015, are
amended to read as follows:
(2) Subject to subparagraph three of this paragraph for qualified New
York manufacturing corporations as defined in subparagraph four of this
paragraph, if the amount of business income allocated within the city as
hereinafter provided is ten million dollars or greater but less than
twenty million dollars, the amount computed in clause (i) of subpara-
graph one of paragraph (e) of this subdivision shall be at the rate of
(i) four and four hundred twenty-five one-thousandths per centum, plus
(ii) [four and four hundred twenty-five one-thousandths per centum] A
MANUFACTURING SCALING FACTOR multiplied by a fraction the numerator of
which is allocated business income less ten million dollars and the
denominator of which is ten million dollars, of its business income or
the portion of such business income allocated within the city as herein-
after provided, subject to any modification required by paragraphs (d)
and (e) of subdivision three of this section;
(3) Notwithstanding anything to the contrary, if the amount of busi-
ness income before allocation is twenty million dollars or greater but
less than forty million dollars, the rate of tax provided for in this
A. 10009--B 126
paragraph shall not be less than (i) four and four hundred twenty-five
one thousandths percentum, plus (ii) [four and four hundred twenty-five
one thousandths percentum] A MANUFACTURING SCALING FACTOR multiplied by
a fraction the numerator of which is business income before allocation
less twenty million dollars and the denominator of which is twenty
million dollars, and provided, however, notwithstanding anything to the
contrary, if the amount of business income before allocation is forty
million dollars or greater, the rate of tax shall be eight and eighty-
five one-hundredths per centum FOR A TAXABLE YEAR BEGINNING BEFORE JANU-
ARY FIRST, TWO THOUSAND TWENTY-SIX, AND TEN AND SIXTY-TWO ONE-HUNDREDTHS
PER CENTUM FOR A TAXABLE YEAR BEGINNING ON OR AFTER JANUARY FIRST, TWO
THOUSAND TWENTY-SIX. FOR THE PURPOSES OF THIS SUBPARAGRAPH AND SUBPARA-
GRAPH TWO OF THIS PARAGRAPH, THE TERM "MANUFACTURING SCALING FACTOR"
MEANS A VALUE EQUAL TO FOUR AND FOUR HUNDRED TWENTY-FIVE ONE-THOUSANDTHS
PER CENTUM FOR A TAXABLE YEAR BEGINNING BEFORE JANUARY FIRST, TWO THOU-
SAND TWENTY-SIX, OR A VALUE EQUAL TO SIX AND ONE HUNDRED NINETY-FIVE
ONE-THOUSANDTHS PER CENTUM FOR A TAXABLE YEAR BEGINNING ON OR AFTER
JANUARY FIRST, TWO THOUSAND TWENTY-SIX.
§ 12. The opening paragraph of subparagraph 2 of paragraph (a) of
subdivision 18 of section 11-654 of the administrative code of the city
of New York, as amended by section 12 of part P of chapter 60 of the
laws of 2016, is amended to read as follows:
The amount determined in this subparagraph is the product of (i) the
excess of (A) the tax computed under clause (i) of subparagraph one of
paragraph (e) of subdivision one of this section, without allowance of
any credits allowed by this section, over (B) the tax so computed,
determined as if the corporation had no such distributive share or guar-
anteed payments with respect to the unincorporated business, and (ii) a
fraction, the numerator of which is four and the denominator of which,
FOR A TAXABLE YEAR BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND TWENTY-
SIX, is eight and eighty-five one hundredths, [except] PROVIDED THAT,
FOR A TAXABLE YEAR BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND
TWENTY-SIX, SUCH DENOMINATOR IS TEN AND SIXTY-TWO ONE-HUNDREDTHS, AND
PROVIDED FURTHER that in the case of a financial corporation as defined
in clause (i) of subparagraph one of paragraph (e) of subdivision one of
this section, FOR A TAXABLE YEAR BEGINNING BEFORE JANUARY FIRST, TWO
THOUSAND TWENTY-SIX, such denominator is nine, AND FOR A TAXABLE YEAR
BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND TWENTY-SIX, SUCH
DENOMINATOR IS TEN AND EIGHT-TENTHS, and PROVIDED FURTHER THAT in the
case of a taxpayer that is subject to paragraph (j) or (k) of subdivi-
sion one of this section, such denominator shall be the rate of tax as
determined by such paragraph (j) or (k) for the taxable year; provided
that the amounts computed in subclauses (A) and (B) of clause (i) of
this subparagraph shall be computed with the following modifications:
§ 13. Subparagraph 1 of paragraph (b) of subdivision 18 of section
11-654 of the administrative code of the city of New York, as amended by
section 13 of part P of chapter 60 of the laws of 2016, is amended to
read as follows:
(1) Notwithstanding anything to the contrary in paragraph (a) of this
subdivision, in the case of a corporation that, before the application
of this subdivision or any other credit allowed by this section, is
liable for the tax on business income under clause (i) of subparagraph
one of paragraph (e) of subdivision one of this section, the credit or
the sum of the credits that may be taken by such corporation for a taxa-
ble year under this subdivision with respect to an unincorporated busi-
ness or unincorporated businesses in which it is a partner shall not
A. 10009--B 127
exceed the tax so computed, without allowance of any credits allowed by
this section, multiplied by a fraction the numerator of which is four
and the denominator of which is eight and eighty-five one-hundredths,
[except] PROVIDED THAT, FOR A TAXABLE YEAR BEGINNING ON OR AFTER JANUARY
FIRST, TWO THOUSAND TWENTY-SIX, SUCH DENOMINATOR SHALL BE EQUAL TO TEN
AND SIXTY-TWO ONE-HUNDREDTHS, AND PROVIDED FURTHER that in the case of a
financial corporation as defined in clause (i) of subparagraph one of
paragraph (e) of subdivision one of this section, such denominator, FOR
A TAXABLE YEAR BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND TWENTY-SIX,
is nine, and, FOR A TAXABLE YEAR BEGINNING ON OR AFTER JANUARY FIRST,
TWO THOUSAND TWENTY-SIX, IS TEN AND EIGHT-TENTHS, AND PROVIDED FURTHER
THAT in the case of a taxpayer that is subject to paragraph (j) or (k)
of subdivision one of this section, such denominator shall be the rate
of tax as determined by such paragraph (j) or (k) for the taxable year.
If the credit allowed under this subdivision or the sum of such credits
exceeds the product of such tax and such fraction, the amount of the
excess may be carried forward, in order, to each of the seven immediate-
ly succeeding taxable years and, to the extent not previously taken,
shall be allowed as a credit in each of such years. In applying the
provisions of the preceding sentence, the credit determined for the
taxable year under paragraph (a) of this subdivision shall be taken
before taking any credit carryforward pursuant to this paragraph and the
credit carryforward attributable to the earliest taxable year shall be
taken before taking a credit carryforward attributable to a subsequent
taxable year.
§ 14. This act shall take effect immediately and shall be deemed to
have been in full force and effect January 1, 2026, and shall apply to
taxable years beginning on or after January 1, 2026.
PART QQ
Section 1. Short title. This act shall be known and may be cited as
the "New York city mansion tax act".
§ 2. Paragraph (i) of subdivision (b) of section 1201 of the tax law,
as amended by chapter 170 of the laws of 1994, is amended to read as
follows:
(i) Taxes on each deed, other instrument or transaction (other than a
deed or instrument given solely as security or a transaction the sole
purpose of which is to secure an obligation or indebtedness) by which
any real property or any economic interest therein is conveyed or trans-
ferred, measured by the consideration or value of the interest or prop-
erty conveyed or transferred, (1) at a rate not to exceed one-half of
one percent of such consideration or value with respect to conveyances
made before July first, nineteen hundred seventy-one, or made in
performance of a contract therefor executed before such date, (2) at a
rate not to exceed one percent of such consideration or value with
respect to (A) all conveyances made on or after July first, nineteen
hundred seventy-one and before February first, nineteen hundred eighty-
two, or made in performance of a contract therefor executed during such
period, (B) conveyances or transfers made on or after February first,
nineteen hundred eighty-two of one, two or three-family houses, individ-
ual cooperative apartments and individual residential condominium units,
or interests therein, and (C) conveyances or transfers made on or after
February first, nineteen hundred eighty-two (other than grants, assign-
ments or surrenders of leasehold interests in real property) where the
consideration or value is less than five hundred thousand dollars, (3)
A. 10009--B 128
at a rate not to exceed two percent of such consideration or value with
respect to all other conveyances or transfers made on or after February
first, nineteen hundred eighty-two (other than grants, assignments or
surrenders of leasehold interests in real property) other than those
conveyances or transfers specified in subparagraphs four, five [and],
six AND SEVEN of this paragraph, (4) at a rate not to exceed one and
four hundred twenty-five thousandths of one percent of such consider-
ation or value where such consideration or value is less than five
hundred thousand dollars with respect to all conveyances or transfers
other than for conveyances or transfers of one, two or three family
houses, individual cooperative apartments, and individual residential
condominium units, or interests therein (other than grants, assignment
or surrenders of leasehold interests in real property), made on or after
August first, nineteen hundred eighty-nine, (5) at a rate not to exceed
one and four hundred twenty-five thousandths of one percent of such
consideration or value where such consideration or value is more than
five hundred thousand dollars with respect to conveyances or transfers
of one, two or three family houses, individual cooperative apartments,
and individual residential condominium units, or interests therein
(other than grants, assignments or surrenders of leasehold interests in
real property), made on or after August first, nineteen hundred eighty-
nine AND BEFORE JUNE FIRST, TWO THOUSAND TWENTY-SIX, [and] (6) at a rate
not to exceed two and six hundred twenty-five one thousandths of one
percent of such consideration or value where such consideration or value
is greater than five hundred thousand dollars with respect to all
conveyances or transfers other than for conveyances or transfers of one,
two or three family houses, individual cooperative apartments, and indi-
vidual residential condominium units, or interests therein (other than
grants, assignment or surrenders of leasehold interests in real proper-
ty), made on or after August first, nineteen hundred eighty-nine, AND
(7) WITH RESPECT TO CONVEYANCES OR TRANSFERS OF ONE, TWO OR THREE FAMILY
HOUSES, INDIVIDUAL COOPERATIVE APARTMENTS, AND INDIVIDUAL RESIDENTIAL
CONDOMINIUM UNITS, OR INTERESTS THEREIN (OTHER THAN GRANTS, ASSIGNMENTS
OR SURRENDERS OF LEASEHOLD INTERESTS IN REAL PROPERTY), MADE ON OR AFTER
JUNE FIRST, TWO THOUSAND TWENTY-SIX, (A) AT A RATE NOT TO EXCEED ONE AND
FOUR HUNDRED TWENTY-FIVE ONE THOUSANDTHS OF ONE PERCENT OF CONSIDERATION
OR VALUE WHERE SUCH CONSIDERATION OR VALUE IS GREATER THAN FIVE HUNDRED
THOUSAND DOLLARS BUT NOT GREATER THAN FIVE MILLION DOLLARS, (B) AT A
RATE NOT TO EXCEED THREE AND SIX HUNDRED SEVENTY-FIVE ONE THOUSANDTHS OF
ONE PERCENT OF CONSIDERATION OR VALUE WHERE SUCH CONSIDERATION OR VALUE
IS GREATER THAN FIVE MILLION DOLLARS BUT NOT GREATER THAN TEN MILLION
DOLLARS, (C) AT A RATE NOT TO EXCEED FOUR AND SIX HUNDRED SEVENTY-FIVE
ONE THOUSANDTHS OF ONE PERCENT OF CONSIDERATION OR VALUE WHERE SUCH
CONSIDERATION OR VALUE IS GREATER THAN TEN MILLION DOLLARS BUT NOT
GREATER THAN FIFTEEN MILLION DOLLARS, (D) AT A RATE NOT TO EXCEED FOUR
AND NINE HUNDRED TWENTY-FIVE ONE THOUSANDTHS OF ONE PERCENT OF CONSIDER-
ATION OR VALUE WHERE SUCH CONSIDERATION OR VALUE IS GREATER THAN FIFTEEN
MILLION DOLLARS BUT NOT GREATER THAN TWENTY MILLION DOLLARS, (E) AT A
RATE NOT TO EXCEED FIVE AND ONE HUNDRED SEVENTY-FIVE ONE THOUSANDTHS OF
ONE PERCENT OF CONSIDERATION OR VALUE WHERE SUCH CONSIDERATION OR VALUE
IS GREATER THAN TWENTY MILLION DOLLARS BUT NOT GREATER THAN TWENTY-FIVE
MILLION DOLLARS, AND (F) AT A RATE NOT TO EXCEED FIVE AND THREE HUNDRED
TWENTY-FIVE ONE THOUSANDTHS OF ONE PERCENT OF CONSIDERATION OR VALUE
WHERE SUCH CONSIDERATION OR VALUE IS GREATER THAN TWENTY-FIVE MILLION
DOLLARS. Provided, however, that any such city may allow deductions, in
determining the portion of any tax authorized hereby the proceeds of
A. 10009--B 129
which are payable to the New York city transit authority as hereinafter
provided, for any continuing liens on such interest or property where
such interest or property is a one, two or three-family house, an indi-
vidual cooperative apartment or an individual residential condominium
unit or where the consideration for or value of the interest or property
conveyed or transferred is less than five hundred thousand dollars, and
may also allow an exemption not in excess of twenty-five thousand
dollars on the consideration or value of the interest or property
conveyed and provided, further, that such taxes shall not apply if the
contract for any such conveyance was made prior to May first, nineteen
hundred fifty-nine. Anything to the contrary notwithstanding, where the
tax authorized hereby is imposed on the consideration or value without
any deduction for continuing liens, the portion of the consideration or
value ascribable to such liens shall not be taxed at a rate in excess of
one percent prior to July first, nineteen hundred eighty-two, in excess
of two percent on and after July first, nineteen hundred eighty-two and
before August first, nineteen hundred eighty-nine, or in excess of two
and six hundred twenty-five thousandths of one percent on and after
August first, nineteen hundred eighty-nine, except that where the inter-
est or property is a one, two or three-family house, an individual coop-
erative apartment or an individual residential condominium unit or where
the consideration for a value of the interest or property conveyed or
transferred is less than five hundred thousand dollars the rate on and
after July first, nineteen hundred eighty-two shall not be in excess of
one percent. The amount of any pre-existing liens on such property or
interest which continue thereon after the conveyance or transfer shall
be deemed to be part of the consideration or value for purposes of meas-
uring the tax without regard to whether or not payment of the liens or
of the underlying debt is assumed by the grantee or transferee. The tax
authorized hereby may also be imposed (A) prior to July first, nineteen
hundred eighty-two, at a rate not to exceed one percent, on the grant-
ing, assignment or surrender of a leasehold interest in real property,
other than a leasehold interest in a one, two or three-family house or
an individual dwelling unit in a dwelling which is to be occupied or is
occupied as the residence or home of four or more families living inde-
pendently of each other, where the consideration for or value of such
grant, assignment or surrender is five hundred thousand dollars or more,
(B) on and after July first, nineteen hundred eighty-two and before
August first, nineteen hundred eighty-nine, at a rate not to exceed two
percent, on the granting, assignment or surrender of a leasehold inter-
est in real property, except that in the case of a leasehold interest in
a one, two or three-family house or an individual dwelling unit in a
dwelling which is to be occupied or is occupied as the residence or home
of four or more families living independently of each other, or where
the consideration for or value of such grant, assignment or surrender is
less than five hundred thousand dollars, the rate shall not exceed one
percent [and], (C) on and after August first, nineteen hundred eighty-
nine AND BEFORE JUNE FIRST, TWO THOUSAND TWENTY-SIX, at a rate not to
exceed two and six hundred twenty-five thousandths of one percent, on
the granting, assignment or surrender of a leasehold interest in real
property, except that in the case of a leasehold interest in a one, two
or three-family house or an individual dwelling unit in a dwelling which
is to be occupied or is occupied as the residence or home of four or
more families living independently of each other where the consideration
for or value of such grant, assignment or surrender is less than five
hundred thousand dollars, the rate shall not exceed one percent, or in
A. 10009--B 130
the case of a leasehold interest in a one, two or three family house or
an individual dwelling unit in a dwelling which is to be occupied or is
occupied as the residence or home of four or more families living inde-
pendently of each other where the consideration for or value of such
grant, assignment or surrender is greater than five hundred thousand
dollars, the rate shall not exceed one and four hundred twenty-five
thousandths of one percent, or where the consideration for or value of
any other grant, assignment or surrender is less than five hundred thou-
sand dollars, the rate shall not exceed one and four hundred twenty-five
thousandths of one percent, AND (D) ON AND AFTER JUNE FIRST, TWO THOU-
SAND TWENTY-SIX, AT A RATE NOT TO EXCEED TWO AND SIX HUNDRED TWENTY-FIVE
THOUSANDTHS OF ONE PERCENT, ON THE GRANTING, ASSIGNMENT OR SURRENDER OF
A LEASEHOLD INTEREST IN REAL PROPERTY, EXCEPT THAT IN THE CASE OF A
LEASEHOLD INTEREST IN A ONE, TWO OR THREE-FAMILY HOUSE OR AN INDIVIDUAL
DWELLING UNIT IN A DWELLING WHICH IS TO BE OCCUPIED OR IS OCCUPIED AS
THE RESIDENCE OR HOME OF FOUR OR MORE FAMILIES LIVING INDEPENDENTLY OF
EACH OTHER WHERE THE CONSIDERATION FOR OR VALUE OF SUCH GRANT, ASSIGN-
MENT OR SURRENDER IS FIVE HUNDRED THOUSAND DOLLARS OR LESS, THE RATE
SHALL NOT EXCEED ONE PERCENT, OR IN THE CASE OF A LEASEHOLD INTEREST IN
A ONE, TWO OR THREE FAMILY HOUSE OR AN INDIVIDUAL DWELLING UNIT IN A
DWELLING WHICH IS TO BE OCCUPIED OR IS OCCUPIED AS THE RESIDENCE OR HOME
OF FOUR OR MORE FAMILIES LIVING INDEPENDENTLY OF EACH OTHER WHERE THE
CONSIDERATION FOR OR VALUE OF SUCH GRANT, ASSIGNMENT OR SURRENDER IS
GREATER THAN FIVE HUNDRED THOUSAND DOLLARS BUT NOT GREATER THAN FIVE
MILLION DOLLARS, THE RATE SHALL NOT EXCEED ONE AND FOUR HUNDRED TWENTY-
FIVE THOUSANDTHS OF ONE PERCENT, OR IN THE CASE OF A LEASEHOLD INTEREST
IN A ONE, TWO OR THREE FAMILY HOUSE OR AN INDIVIDUAL DWELLING UNIT IN A
DWELLING WHICH IS TO BE OCCUPIED OR IS OCCUPIED AS THE RESIDENCE OR HOME
OF FOUR OR MORE FAMILIES LIVING INDEPENDENTLY OF EACH OTHER WHERE THE
CONSIDERATION FOR OR VALUE OF SUCH GRANT, ASSIGNMENT OR SURRENDER IS
GREATER THAN FIVE MILLION DOLLARS BUT NOT GREATER THAN TEN MILLION
DOLLARS, THE RATE SHALL NOT EXCEED THREE AND SIX HUNDRED SEVENTY-FIVE
THOUSANDTHS OF ONE PERCENT, OR IN THE CASE OF A LEASEHOLD INTEREST IN A
ONE, TWO OR THREE FAMILY HOUSE OR AN INDIVIDUAL DWELLING UNIT IN A
DWELLING WHICH IS TO BE OCCUPIED OR IS OCCUPIED AS THE RESIDENCE OR HOME
OF FOUR OR MORE FAMILIES LIVING INDEPENDENTLY OF EACH OTHER WHERE THE
CONSIDERATION FOR OR VALUE OF SUCH GRANT, ASSIGNMENT OR SURRENDER IS
GREATER THAN TEN MILLION DOLLARS BUT NOT GREATER THAN FIFTEEN MILLION
DOLLARS, THE RATE SHALL NOT EXCEED FOUR AND SIX HUNDRED SEVENTY-FIVE
THOUSANDTHS OF ONE PERCENT, OR IN THE CASE OF A LEASEHOLD INTEREST IN A
ONE, TWO OR THREE FAMILY HOUSE OR AN INDIVIDUAL DWELLING UNIT IN A
DWELLING WHICH IS TO BE OCCUPIED OR IS OCCUPIED AS THE RESIDENCE OR HOME
OF FOUR OR MORE FAMILIES LIVING INDEPENDENTLY OF EACH OTHER WHERE THE
CONSIDERATION FOR OR VALUE OF SUCH GRANT, ASSIGNMENT OR SURRENDER IS
GREATER THAN FIFTEEN MILLION DOLLARS BUT NOT GREATER THAN TWENTY MILLION
DOLLARS, THE RATE SHALL NOT EXCEED FOUR AND NINE HUNDRED TWENTY-FIVE
THOUSANDTHS OF ONE PERCENT, OR IN THE CASE OF A LEASEHOLD INTEREST IN A
ONE, TWO OR THREE FAMILY HOUSE OR AN INDIVIDUAL DWELLING UNIT IN A
DWELLING WHICH IS TO BE OCCUPIED OR IS OCCUPIED AS THE RESIDENCE OR HOME
OF FOUR OR MORE FAMILIES LIVING INDEPENDENTLY OF EACH OTHER WHERE THE
CONSIDERATION FOR OR VALUE OF SUCH GRANT, ASSIGNMENT OR SURRENDER IS
GREATER THAN TWENTY MILLION DOLLARS BUT NOT GREATER THAN TWENTY-FIVE
MILLION DOLLARS, THE RATE SHALL NOT EXCEED FIVE AND ONE HUNDRED SEVEN-
TY-FIVE THOUSANDTHS OF ONE PERCENT, OR IN THE CASE OF A LEASEHOLD INTER-
EST IN A ONE, TWO OR THREE FAMILY HOUSE OR AN INDIVIDUAL DWELLING UNIT
IN A DWELLING WHICH IS TO BE OCCUPIED OR IS OCCUPIED AS THE RESIDENCE OR
A. 10009--B 131
HOME OF FOUR OR MORE FAMILIES LIVING INDEPENDENTLY OF EACH OTHER WHERE
THE CONSIDERATION FOR OR VALUE OF SUCH GRANT, ASSIGNMENT OR SURRENDER IS
GREATER THAN TWENTY-FIVE MILLION DOLLARS, THE RATE SHALL NOT EXCEED FIVE
AND THREE HUNDRED TWENTY-FIVE THOUSANDTHS OF ONE PERCENT, OR WHERE THE
CONSIDERATION FOR OR VALUE OF ANY OTHER GRANT, ASSIGNMENT OR SURRENDER
IS FIVE HUNDRED THOUSAND DOLLARS OR LESS, THE RATE SHALL NOT EXCEED ONE
AND FOUR HUNDRED TWENTY-FIVE THOUSANDTHS OF ONE PERCENT; provided,
however, that for purposes of a tax on the granting of a leasehold
interest in real property, the amount subject to tax shall be only such
amount as is not considered rent for purposes of the tax authorized to
be imposed on the occupancy of commercial premises by chapter two
hundred fifty-seven of the laws of nineteen hundred sixty-three, as
amended, and imposed by a city having a population of one million or
more pursuant thereto. In the case of any conveyance or transfer of real
property or any economic interest therein in complete or partial liqui-
dation of a corporation, partnership, association, trust or other enti-
ty, the tax shall be measured by the consideration for such conveyance
or transfer or the value of the real property or interest therein,
whichever is greater. Such taxes may be imposed on any conveyance or
transfer of real property or interest therein where the real property is
located in such city regardless of where transactions, negotiations,
transfers of deeds or other actions with regard to the transfer or
conveyance take place, subject only to the restrictions contained in
section twelve hundred thirty. The payment of, and the filing of a
return relating to, any such taxes may be required as a condition prece-
dent (1) to the recording or filing of a deed, lease, assignment or
surrender of lease or other instrument, (2) to the commencement of any
action or proceeding in any court of this state in which any conveyance,
transfer or lease described herein is in issue, directly or indirectly,
or (3) to the receipt in evidence of such deed, lease, assignment or
surrender of lease or other instrument in any such court. In each
instance where the tax rate imposed pursuant to this subdivision is two
percent, fifty percent of the total amount of such tax, including fifty
percent of any interest or penalties thereon, shall be set aside in a
special account by the commissioner of finance of such city, provided,
however, that where the consideration for or value of property or inter-
est conveyed or transferred includes the amount of any nondeductible
mortgage, lien or other encumbrance which existed before the conveyance
or transfer and remains thereon after such conveyance or transfer, (A)
prior to July first, nineteen hundred eighty-two the entire amount of
tax imposed at a rate not in excess of one percent on the portion of the
consideration or value ascribable to such nondeductible mortgage, lien
or other encumbrance, including any interest or penalties thereon, and
fifty percent of the tax on the balance of the consideration or value,
including fifty percent of any interest or penalties thereon, shall be
set aside in such special account, and (B) on and after July first,
nineteen hundred eighty-two and before August first, nineteen hundred
eighty-nine, fifty percent of the amount of tax imposed at a rate in
excess of one percent but not in excess of two percent on the portion of
the consideration or value ascribable to such nondeductible mortgage,
lien or other encumbrance, including fifty percent of any interest or
penalties thereon, and fifty percent of the tax on the balance of the
consideration or value, including fifty percent of any interest or
penalties thereon, shall be set aside in such special account. On and
after August first, nineteen hundred eighty-nine, in each instance where
the tax rate imposed pursuant to this subdivision is in excess of two
A. 10009--B 132
percent, EXCEPT WHERE SUCH TAX RATE IS IMPOSED ON A CONVEYANCE OR TRANS-
FER OF A ONE, TWO OR THREE FAMILY HOUSE, INDIVIDUAL COOPERATIVE APART-
MENT, OR INDIVIDUAL RESIDENTIAL CONDOMINIUM UNITS, OR INTEREST THEREIN,
AND THE CONSIDERATION FOR OR VALUE OF SUCH CONVEYANCE OR TRANSFER IS
GREATER THAN FIVE MILLION DOLLARS, the portion of the tax, and any
interest or penalty thereon, to be set aside in such special account
shall be an amount equal to one percent of the total consideration for
or value of the real property or economic interest therein conveyed or
transferred, plus any interest or penalty attributable to such portion
of the tax. There shall also be set aside in such special account prior
to July first, nineteen hundred eighty-two the total amount of taxes
imposed on grants, assignments or surrenders of leasehold interests in
real property, including any interest or penalties thereon; on and after
July first, nineteen hundred eighty-two and before August first, nine-
teen hundred eighty-nine, there shall be set aside in such special
account fifty percent of the amount of taxes imposed on grants, assign-
ments or surrenders of leasehold interests in real property, other than
a leasehold interest in a one, two or three-family house or an individ-
ual dwelling unit in a dwelling which is to be occupied or is occupied
as the residence or home of four or more families living independently
of each other, or where the consideration for or value of such grant,
assignment or surrender is less than five hundred thousand dollars,
including fifty percent of any interest or penalties thereon. On and
after August first, nineteen hundred eighty-nine, there shall be set
aside in such special account, in each instance where the rate of tax on
grants, assignments or surrenders of leasehold interests in real proper-
ty is two percent or more, EXCEPT WHERE SUCH RATE OF TAX IS IMPOSED ON
GRANTS, ASSIGNMENTS OR SURRENDERS OF LEASEHOLD INTERESTS IN ONE, TWO OR
THREE-FAMILY HOUSES OR INDIVIDUAL DWELLING UNITS IN A DWELLING WHICH IS
TO BE OCCUPIED OR IS OCCUPIED AS THE RESIDENCE OR HOME OF FOUR OR MORE
FAMILIES LIVING INDEPENDENTLY OF EACH OTHER, AND THE CONSIDERATION FOR
OR VALUE OF SUCH GRANT, ASSIGNMENT, OR SURRENDER OF A LEASEHOLD INTEREST
IS GREATER THAN FIVE MILLION DOLLARS, an amount equal to one percent of
the consideration for or value of the leasehold interest granted,
assigned or surrendered, plus any interest or penalty attributable to
such portion of the tax. Notwithstanding anything in this paragraph (i)
to the contrary, in each instance where the tax rate imposed pursuant to
paragraph (xi) of this subdivision is in excess of one percent, EXCEPT
WHERE SUCH TAX RATE IS IMPOSED ON A CONVEYANCE OR TRANSFER OF A ONE, TWO
OR THREE FAMILY HOUSE, INDIVIDUAL COOPERATIVE APARTMENT, OR INDIVIDUAL
RESIDENTIAL CONDOMINIUM UNITS, OR INTEREST THEREIN, AND THE CONSIDER-
ATION FOR OR VALUE OF SUCH CONVEYANCE OR TRANSFER IS GREATER THAN FIVE
MILLION DOLLARS, the portion of tax, and any interest or penalty there-
on, to be set aside in such special account shall be an amount equal to
one-half of one percent of the total consideration for or value of the
real property or economic interest therein conveyed or transferred, plus
any interest or penalty attributable to such portion of the tax, and
there shall be set aside in such special account, in each instance where
the rate of tax imposed under paragraph (xi) of this subdivision on
grants, assignments or surrenders of leasehold interests in real proper-
ty is in excess of one percent, EXCEPT WHERE SUCH RATE OF TAX IS IMPOSED
ON GRANTS, ASSIGNMENTS OR SURRENDERS OF LEASEHOLD INTERESTS IN ONE, TWO
OR THREE-FAMILY HOUSES OR INDIVIDUAL DWELLING UNITS IN A DWELLING WHICH
IS TO BE OCCUPIED OR IS OCCUPIED AS THE RESIDENCE OR HOME OF FOUR OR
MORE FAMILIES LIVING INDEPENDENTLY OF EACH OTHER, AND THE CONSIDERATION
FOR OR VALUE OF SUCH GRANT, ASSIGNMENT OR SURRENDER OF A LEASEHOLD
A. 10009--B 133
INTEREST IS GREATER THAN FIVE MILLION DOLLARS, an amount equal to one-
half of one percent of the consideration for or value of the leasehold
interest granted, assigned or surrendered, plus any interest or penalty
attributable to such portion of the tax. Moneys in such account shall be
used for payment by such commissioner to the state comptroller for
deposit in the urban mass transit operating assistance account of the
mass transportation operating assistance fund of any amount of insuffi-
ciency certified by the state comptroller pursuant to the provisions of
subdivision six of section eighty-eight-a of the state finance law, and,
on the fifteenth day of each month such commissioner shall transmit all
funds in such account on the last day of the preceding month, except the
amount required for the payment of any amount of insufficiency certified
by the state comptroller and such amount as [he] SUCH COMPTROLLER deems
necessary for refunds and such other amounts necessary to finance the
New York city transportation disabled committee and the New York city
paratransit system as established by section fifteen-b of the transpor-
tation law, provided, however, that such amounts shall not exceed six
percent of the total funds in the account but in no event be less than
one hundred seventy-five thousand dollars beginning April first, nine-
teen hundred eighty-six, and further that beginning November fifteenth,
nineteen hundred eighty-four and during the entire period prior to oper-
ation of such system, the total of such amounts shall not exceed three
hundred seventy-five thousand dollars for the administrative expenses of
such committee and fifty thousand dollars for the expenses of the agency
designated pursuant to paragraph b of subdivision five of such section,
and other amounts necessary to finance the operating needs of the
private bus companies franchised by the city of New York and eligible to
receive state operating assistance under section eighteen-b of the
transportation law, provided, however, that such amounts shall not
exceed four percent of the total funds in the account, to the New York
city transit authority for mass transit within the city.
§ 3. Paragraphs 9 and 10 of subdivision a of section 11-2102 of the
administrative code of the city of New York, as added by local law
number 59 of the city of New York for the year 1989, are amended and two
new paragraphs 11 and 12 are added to read as follows:
(9) with respect to conveyances made on or after August first, nine-
teen hundred eighty-nine, AND BEFORE JUNE FIRST, TWO THOUSAND TWENTY-SIX
(other than grants, assignments or surrenders of leasehold interests in
real property taxable as provided in paragraph ten of this subdivision),
the tax shall be at the following rates:
(i) at the rate of one percent of the consideration for conveyances of
one, two or three-family houses and individual residential condominium
units where the consideration is five hundred thousand dollars or less,
and at the rate of one and four hundred twenty-five thousandths of one
percent of the consideration for such conveyances where the consider-
ation is more than five hundred thousand dollars, and
(ii) at the rate of one and four hundred twenty-five thousandths of
one percent of the consideration with respect to all other conveyances
where the consideration is five hundred thousand dollars or less, and at
the rate of two and six hundred twenty-five thousandths of one percent
where the consideration for such conveyances is more than five hundred
thousand dollars;
(10) With respect to a grant, assignment or surrender of a leasehold
interest in real property made on or after August first, nineteen
hundred eighty-nine, AND BEFORE JUNE FIRST, TWO THOUSAND TWENTY-SIX, the
tax shall be at the following rates:
A. 10009--B 134
(i) at the rate of one percent of the consideration for the granting,
assignment or surrender of a leasehold interest in a one, two or three-
family house or an individual dwelling unit in a dwelling which is to be
occupied or is occupied as the residence or home of four or more fami-
lies living independently of each other where the consideration is five
hundred thousand dollars or less, and at the rate of one and four
hundred twenty-five thousandths of one percent of the consideration
where the consideration for granting, assignment or surrender or such
leasehold interest is more than five hundred thousand dollars, and
(ii) at the rate of one and four hundred twenty-five thousandths of
one percent of the consideration for the granting, assignment or surren-
der of a leasehold interest in all other real property where the consid-
eration is five hundred thousand dollars or less, and at the rate of two
and six hundred twenty-five thousandths of one percent of the consider-
ation where the consideration for the granting, assignment or surrender
of such a leasehold interest is more than five hundred thousand dollars;
(iii) provided, however, that for purposes of subparagraphs (i) and
(ii) of this paragraph, the amount subject to tax in the case of a grant
of a leasehold interest shall be only such amount as is not considered
rent for purposes of the tax imposed by chapter seven of this title[.];
(11) WITH RESPECT TO CONVEYANCES MADE ON OR AFTER JUNE FIRST, TWO
THOUSAND TWENTY-SIX (OTHER THAN GRANTS, ASSIGNMENTS OR SURRENDERS OF
LEASEHOLD INTERESTS IN REAL PROPERTY TAXABLE AS PROVIDED IN PARAGRAPH
TWELVE OF THIS SUBDIVISION), THE TAX SHALL BE AT THE FOLLOWING RATES:
(I) AT THE RATE OF ONE PERCENT OF THE CONSIDERATION FOR CONVEYANCES OF
ONE, TWO OR THREE-FAMILY HOUSES AND INDIVIDUAL RESIDENTIAL CONDOMINIUM
UNITS WHERE THE CONSIDERATION IS FIVE HUNDRED THOUSAND DOLLARS OR LESS,
AND AT THE RATE OF ONE AND FOUR HUNDRED TWENTY-FIVE THOUSANDTHS OF ONE
PERCENT OF THE CONSIDERATION FOR SUCH CONVEYANCES WHERE THE CONSIDER-
ATION IS MORE THAN FIVE HUNDRED THOUSAND DOLLARS BUT NOT MORE THAN FIVE
MILLION DOLLARS, AND AT THE RATE OF THREE AND SIX HUNDRED SEVENTY-FIVE
THOUSANDTHS OF ONE PERCENT OF THE CONSIDERATION FOR SUCH CONVEYANCES
WHERE THE CONSIDERATION IS MORE THAN FIVE MILLION DOLLARS BUT NOT MORE
THAN TEN MILLION DOLLARS, AND AT THE RATE OF FOUR AND SIX HUNDRED SEVEN-
TY-FIVE THOUSANDS OF ONE PERCENT OF THE CONSIDERATION FOR SUCH CONVEY-
ANCES WHERE THE CONSIDERATION IS MORE THAN TEN MILLION DOLLARS BUT NOT
MORE THAN FIFTEEN MILLION DOLLARS, AND AT THE RATE OF FOUR AND NINE
HUNDRED TWENTY-FIVE THOUSANDTHS OF ONE PERCENT OF THE CONSIDERATION FOR
SUCH CONVEYANCES WHERE THE CONSIDERATION IS MORE THAN FIFTEEN MILLION
DOLLARS BUT NOT MORE THAN TWENTY MILLION DOLLARS, AND AT THE RATE OF
FIVE AND ONE HUNDRED SEVENTY-FIVE THOUSANDTHS OF ONE PERCENT OF THE
CONSIDERATION FOR SUCH CONVEYANCES WHERE THE CONSIDERATION IS MORE THAN
TWENTY MILLION DOLLARS BUT NOT MORE THAN TWENTY-FIVE MILLION DOLLARS,
AND AT THE RATE OF FIVE AND THREE HUNDRED TWENTY-FIVE THOUSANDTHS OF ONE
PERCENT OF THE CONSIDERATION FOR SUCH CONVEYANCES WHERE THE CONSIDER-
ATION IS MORE THAN TWENTY-FIVE MILLION DOLLARS, AND
(II) AT THE RATE OF ONE AND FOUR HUNDRED TWENTY-FIVE THOUSANDTHS OF
ONE PERCENT OF THE CONSIDERATION WITH RESPECT TO ALL OTHER CONVEYANCES
WHERE THE CONSIDERATION IS FIVE HUNDRED THOUSAND DOLLARS OR LESS, AND AT
THE RATE OF TWO AND SIX HUNDRED TWENTY-FIVE THOUSANDTHS OF ONE PERCENT
WHERE THE CONSIDERATION FOR SUCH CONVEYANCES IS MORE THAN FIVE HUNDRED
THOUSAND DOLLARS;
(12) WITH RESPECT TO A GRANT, ASSIGNMENT OR SURRENDER OF A LEASEHOLD
INTEREST IN REAL PROPERTY MADE ON OR AFTER JUNE FIRST, TWO THOUSAND
TWENTY-SIX, THE TAX SHALL BE AT THE FOLLOWING RATES:
A. 10009--B 135
(I) AT THE RATE OF ONE PERCENT OF THE CONSIDERATION FOR THE GRANTING,
ASSIGNMENT OR SURRENDER OF A LEASEHOLD INTEREST IN A ONE, TWO OR THREE-
FAMILY HOUSE OR AN INDIVIDUAL DWELLING UNIT IN A DWELLING WHICH IS TO BE
OCCUPIED OR IS OCCUPIED AS THE RESIDENCE OR HOME OF FOUR OR MORE FAMI-
LIES LIVING INDEPENDENTLY OF EACH OTHER WHERE THE CONSIDERATION IS FIVE
HUNDRED THOUSAND DOLLARS OR LESS, AND AT THE RATE OF ONE AND FOUR
HUNDRED TWENTY-FIVE THOUSANDTHS OF ONE PERCENT OF THE CONSIDERATION
WHERE THE CONSIDERATION FOR GRANTING, ASSIGNMENT OR SURRENDER OF SUCH A
LEASEHOLD INTEREST IS MORE THAN FIVE HUNDRED THOUSAND DOLLARS BUT NOT
MORE THAN FIVE MILLION DOLLARS, AND AT THE RATE OF THREE AND SIX HUNDRED
SEVENTY-FIVE THOUSANDTHS OF ONE PERCENT OF THE CONSIDERATION WHERE THE
CONSIDERATION FOR GRANTING, ASSIGNMENT OR SURRENDER OF SUCH A LEASEHOLD
INTEREST IS MORE THAN FIVE MILLION DOLLARS BUT NOT MORE THAN TEN MILLION
DOLLARS, AND AT THE RATE OF FOUR AND SIX HUNDRED SEVENTY-FIVE THOU-
SANDTHS OF ONE PERCENT OF THE CONSIDERATION WHERE THE CONSIDERATION FOR
GRANTING, ASSIGNMENT OR SURRENDER OF SUCH A LEASEHOLD INTEREST IS MORE
THAN TEN MILLION DOLLARS BUT NOT MORE THAN FIFTEEN MILLION DOLLARS, AND
AT THE RATE OF FOUR AND NINE HUNDRED TWENTY-FIVE THOUSANDTHS OF ONE
PERCENT OF THE CONSIDERATION WHERE THE CONSIDERATION FOR GRANTING,
ASSIGNMENT OR SURRENDER OF SUCH A LEASEHOLD INTEREST IS MORE THAN
FIFTEEN MILLION DOLLARS BUT NOT MORE THAN TWENTY MILLION DOLLARS, AND AT
THE RATE OF FIVE AND ONE HUNDRED SEVENTY-FIVE THOUSANDTHS OF ONE PERCENT
OF THE CONSIDERATION WHERE THE CONSIDERATION FOR GRANTING, ASSIGNMENT OR
SURRENDER OF SUCH A LEASEHOLD INTEREST IS MORE THAN TWENTY MILLION
DOLLARS BUT NOT MORE THAN TWENTY-FIVE MILLION DOLLARS, AND AT THE RATE
OF FIVE AND THREE HUNDRED TWENTY-FIVE THOUSANDTHS OF ONE PERCENT OF THE
CONSIDERATION WHERE THE CONSIDERATION FOR GRANTING, ASSIGNMENT OR
SURRENDER OF SUCH A LEASEHOLD INTEREST IS MORE THAN TWENTY-FIVE MILLION
DOLLARS, AND
(II) AT THE RATE OF ONE AND FOUR HUNDRED TWENTY-FIVE THOUSANDTHS OF
ONE PERCENT OF THE CONSIDERATION FOR THE GRANTING, ASSIGNMENT OR SURREN-
DER OF A LEASEHOLD INTEREST IN ALL OTHER REAL PROPERTY WHERE THE CONSID-
ERATION IS FIVE HUNDRED THOUSAND DOLLARS OR LESS, AND AT THE RATE OF TWO
AND SIX HUNDRED TWENTY-FIVE THOUSANDTHS OF ONE PERCENT OF THE CONSIDER-
ATION WHERE THE CONSIDERATION FOR THE GRANTING, ASSIGNMENT OR SURRENDER
OF SUCH A LEASEHOLD INTEREST IS MORE THAN FIVE HUNDRED THOUSAND DOLLARS;
(III) PROVIDED, HOWEVER, THAT FOR PURPOSES OF SUBPARAGRAPHS (I) AND
(II) OF THIS PARAGRAPH, THE AMOUNT SUBJECT TO TAX IN THE CASE OF A GRANT
OF A LEASEHOLD INTEREST SHALL BE ONLY SUCH AMOUNT AS IS NOT CONSIDERED
RENT FOR PURPOSES OF THE TAX IMPOSED BY CHAPTER SEVEN OF THIS TITLE.
§ 4. Subparagraph (B) of paragraph 1 of subdivision b of section
11-2102 of the administrative code of the city of New York, as amended
by local law number 59 of the city of New York for the year 1989, is
amended to read as follows:
(B) With respect to such transfers made on or after August first,
nineteen hundred eighty-nine, AND BEFORE JUNE FIRST, TWO THOUSAND TWEN-
TY-SIX, the tax shall be at the following rates:
(i) at the rate of one percent of the consideration where the real
property, the economic interest in which is transferred, is a one, two
or three-family house, an individual cooperative apartment, an individ-
ual residential condominium unit or an individual dwelling unit in a
dwelling which is to be occupied or is occupied as the residence or home
of four or more families living independently of each other and where
the consideration for such transfer of an economic interest in such real
property is five hundred thousand dollars or less, and at the rate of
one and four hundred twenty-five thousandths of one percent of the
A. 10009--B 136
consideration where the consideration for such transfer of an economic
interest in such property is more than five hundred thousand dollars,
and
(ii) at the rate of one and four hundred twenty-five thousandths of
one percent of the consideration with respect to all other transfers of
an economic interest in real property where the consideration is five
hundred thousand dollars or less, and at the rate of two and six hundred
twenty-five thousandths of one percent of the consideration where the
consideration for such transfers is more than five hundred thousand
dollars.
§ 5. Paragraph 1 of subdivision b of section 11-2102 of the adminis-
trative code of the city of New York is amended by adding a new subpara-
graph (B-1) to read as follows:
(B-1) WITH RESPECT TO SUCH TRANSFERS MADE ON OR AFTER JUNE FIRST, TWO
THOUSAND TWENTY-SIX, THE TAX SHALL BE AT THE FOLLOWING RATES:
(I) AT THE RATE OF ONE PERCENT OF THE CONSIDERATION WHERE THE REAL
PROPERTY, THE ECONOMIC INTEREST IN WHICH IS TRANSFERRED, IS A ONE, TWO
OR THREE-FAMILY HOUSE, AN INDIVIDUAL COOPERATIVE APARTMENT, AN INDIVID-
UAL RESIDENTIAL CONDOMINIUM UNIT OR AN INDIVIDUAL DWELLING UNIT IN A
DWELLING WHICH IS TO BE OCCUPIED OR IS OCCUPIED AS THE RESIDENCE OR HOME
OF FOUR OR MORE FAMILIES LIVING INDEPENDENTLY OF EACH OTHER AND WHERE
THE CONSIDERATION FOR SUCH TRANSFER OF AN ECONOMIC INTEREST IN SUCH REAL
PROPERTY IS FIVE HUNDRED THOUSAND DOLLARS OR LESS, AND AT THE RATE OF
ONE AND FOUR HUNDRED TWENTY-FIVE THOUSANDTHS OF ONE PERCENT OF THE
CONSIDERATION WHERE THE CONSIDERATION FOR SUCH TRANSFER OF AN ECONOMIC
INTEREST IN SUCH PROPERTY IS MORE THAN FIVE HUNDRED THOUSAND DOLLARS BUT
NOT MORE THAN FIVE MILLION DOLLARS, AND AT THE RATE OF THREE AND SIX
HUNDRED SEVENTY-FIVE THOUSANDTHS OF ONE PERCENT OF THE CONSIDERATION
WHERE THE CONSIDERATION FOR SUCH TRANSFER OF AN ECONOMIC INTEREST IN
SUCH PROPERTY IS MORE THAN FIVE MILLION DOLLARS BUT NOT MORE THAN TEN
MILLION DOLLARS, AND AT THE RATE OF FOUR AND SIX HUNDRED SEVENTY-FIVE
THOUSANDTHS OF ONE PERCENT OF THE CONSIDERATION WHERE THE CONSIDERATION
FOR SUCH TRANSFER OF AN ECONOMIC INTEREST IN SUCH PROPERTY IS MORE THAN
TEN MILLION DOLLARS BUT NOT MORE THAN FIFTEEN MILLION DOLLARS, AND AT
THE RATE OF FOUR AND NINE HUNDRED TWENTY-FIVE THOUSANDTHS OF ONE PERCENT
OF THE CONSIDERATION WHERE THE CONSIDERATION FOR SUCH TRANSFER OF AN
ECONOMIC INTEREST IN SUCH PROPERTY IS MORE THAN FIFTEEN MILLION DOLLARS
BUT NOT MORE THAN TWENTY MILLION DOLLARS, AND AT THE RATE OF FIVE AND
ONE HUNDRED SEVENTY-FIVE THOUSANDTHS OF ONE PERCENT OF THE CONSIDERATION
WHERE THE CONSIDERATION FOR SUCH TRANSFER OF AN ECONOMIC INTEREST IN
SUCH PROPERTY IS MORE THAN TWENTY MILLION DOLLARS BUT NOT MORE THAN
TWENTY-FIVE MILLION DOLLARS, AND AT THE RATE OF FIVE AND THREE HUNDRED
TWENTY-FIVE THOUSANDTHS OF ONE PERCENT OF THE CONSIDERATION WHERE THE
CONSIDERATION FOR SUCH TRANSFER OF AN ECONOMIC INTEREST IN SUCH PROPERTY
IS MORE THAN TWENTY-FIVE MILLION DOLLARS, AND
(II) AT THE RATE OF ONE AND FOUR HUNDRED TWENTY-FIVE THOUSANDTHS OF
ONE PERCENT OF THE CONSIDERATION WITH RESPECT TO ALL OTHER TRANSFERS OF
AN ECONOMIC INTEREST IN REAL PROPERTY WHERE THE CONSIDERATION IS FIVE
HUNDRED THOUSAND DOLLARS OR LESS, AND AT THE RATE OF TWO AND SIX HUNDRED
TWENTY-FIVE THOUSANDTHS OF ONE PERCENT OF THE CONSIDERATION WHERE THE
CONSIDERATION FOR SUCH TRANSFERS IS MORE THAN FIVE HUNDRED THOUSAND
DOLLARS.
§ 6. This act shall take effect immediately and shall be deemed to
have been in full force and effect as of June 1, 2026, and apply to
transactions occurring on or after such date.
A. 10009--B 137
§ 2. Severability clause. If any clause, sentence, paragraph, subdivi-
sion, section or part of this act shall be adjudged by any court of
competent jurisdiction to be invalid, such judgment shall not affect,
impair, or invalidate the remainder thereof, but shall be confined in
its operation to the clause, sentence, paragraph, subdivision, section
or part thereof directly involved in the controversy in which such judg-
ment shall have been rendered. It is hereby declared to be the intent of
the legislature that this act would have been enacted even if such
invalid provisions had not been included herein.
§ 3. This act shall take effect immediately provided, however, that
the applicable effective date of Parts A through QQ of this act shall be
as specifically set forth in the last section of such Parts.