New York A 4951: Relates to pass-through manufacturers zero percent tax rate

Bill Text

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A04951 Summary:

BILL NOA04951 

&nbsp

SAME ASNo Same As

&nbsp

SPONSORStirpe

&nbsp

COSPNSRWoerner, Conrad, Lupardo, Palmesano, Buttenschon

&nbsp

MLTSPNSR

&nbsp

Amd §§612, 606 & 210-B, Tax L

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Relates to pass-through manufacturers zero percent tax rate; extends a zero percent franchise tax to all manufacturers.

Go to top A04951 Actions:

BILL NOA04951 

&nbsp

02/10/2025referred to ways and means

01/07/2026referred to ways and means

Go to topA04951 Committee&nbspVotes:

Go to topA04951 Floor&nbspVotes:

There are no Assembly votes for this bill in this legislative session.

Go to topA04951 Text:

 STATE OF NEW YORK
 ________________________________________________________________________

 4951

 2025-2026 Regular Sessions

 IN ASSEMBLY

 February 10, 2025
 ___________

 Introduced by M. of A. STIRPE, WOERNER, CONRAD, LUPARDO, PALMESANO,
 BUTTENSCHON -- read once and referred to the Committee on Ways and
 Means

 AN ACT to amend the tax law, in relation to pass-through manufacturers
 zero percent tax rate

 The People of the State of New York, represented in Senate and Assem-
 bly, do enact as follows:

 1 Section 1. Subsection (b) of section 612 of the tax law is amended by
 2 adding a new paragraph 44 to read as follows:
 3 (44) Any income, gain, loss and deduction, to the extent it is
 4 included in federal adjusted gross income and is, when combined and
 5 combined with additions for federal deprecation required by paragraph
 6 eight of this subsection and subtractions for New York allowed by
 7 subsection (k) of this section, less than zero, of an individual or
 8 trust from a qualified pass-through manufacturer, as defined in para-
 9 graph forty-eight of subsection (c) of this section.
 10 § 2. Paragraph 39 of subsection (c) of section 612 of the tax law, as
 11 amended by section 1 of part C of chapter 59 of the laws of 2022, is
 12 amended and a new paragraph 48 is added to read as follows:
 13 (39) (A) In the case of a taxpayer who is a small business or a
 14 taxpayer who is a member, partner, or shareholder of a limited liability
 15 company, partnership, or New York S corporation, respectively, that is a
 16 small business, who or which has business income and/or farm income as
 17 defined in the laws of the United States, an amount equal to fifteen
 18 percent of the net items of income, gain, loss and deduction attribut-
 19 able to such business or farm entering into federal adjusted gross
 20 income, but not less than zero.
 21 (B) (i) For the purposes of this paragraph, the term small business
 22 shall mean: (I) a sole proprietor who employs one or more persons during
 23 the taxable year and who has net business income or net farm income of
 24 greater than zero but less than two hundred fifty thousand dollars;

 EXPLANATION--Matter in italics (underscored) is new; matter in brackets
 [ ] is old law to be omitted.
 LBD03516-01-5

 A. 4951 2

 1 (II) a limited liability company, partnership, or New York S corpo-
 2 ration that during the taxable year employs one or more persons and has
 3 net farm income attributable to a farm business that is greater than
 4 zero but less than two hundred fifty thousand dollars;[or]
 5 (III) a limited liability company, partnership, or New York S corpo-
 6 ration that during the taxable year employs one or more persons and has
 7 New York gross business income attributable to a non-farm business that
 8 is greater than zero but less than one million five hundred thousand
 9 dollars[.]; or
 10 (IV) For the purposes of this paragraph, the term small business shall
 11 exclude any business that is a qualified pass-through manufacturer, as
 12 defined in paragraph forty-eight of this subsection for the current tax
 13 year.
 14 (ii) For purposes of this paragraph, the term New York gross business
 15 income shall mean: (I) in the case of a limited liability company or a
 16 partnership, New York source gross income as defined in subparagraph (B)
 17 of paragraph three of subsection (c) of section six hundred fifty-eight
 18 of this article; and (II) in the case of a New York S corporation, New
 19 York receipts included in the numerator of the apportionment factor
 20 determined under section two hundred ten-A of this chapter for the taxa-
 21 ble year.
 22 (C) To qualify for this modification