What New York’s 2024-2025 Budget Bill Means for You & Your Business

After several Budget extensions, New York’s 2024-2025 Budget Bill implementing the state’s fiscal plan has been enacted. This law includes new commercial security tax credits and other changes impacting New York State businesses and taxpayers.

 

According to Thomson Reuters, the changes include the summarized items below. Read the article for details.

  • Personal income tax itemized deduction limits for individuals with adjusted gross income over $10 million. 

  • Commercial security tax credits of $3,000 for each retail location in New York State from Jan. 1, 2024 - Jan. 1, 2026. Some qualifiers must be satisfied to claim this credit.

  • Exempt extensions for tangible property and services sold to a related person are extended to June 20, 2025. There are exceptions to this as well. 

  • Amended sales tax returns for quarterly periods commencing on or after Dec. 1, 2024, for sales and use tax returns may be amended if by doing so does not result in the reduction or elimination of a past-due tax liability. There are additional details about this as well. 

  • Technical corrections were made to the Metropolitan Commuter Transportation Mobility Tax (MCTD) where self-employed individuals are subject to the 0.34% MCTD tax rate that was inadvertently repealed. This applies to those in the following counties Dutchess, Nassau, Orange, Putnam, Rockland, Suffolk, and Westchester.

  • The tax shelter disclosure and penalty provisions law has been extended to July 1, 2029 (originally set for July 1, 2024). Effectively, a taxpayer may file a petition for a refund claim if it relates to a refund or credit first claimed on an amended return for the taxable year. Also, the restriction on further deficiency notices is amended to restrict such notices issued for the same tax return. Further, the mandatory electronic filing and payment provisions are extended to December 31, 2029.

Do you have questions? 

We're happy to answer your questions about how these tax law changes could impact you or your business. Give us a call. 

TaxArpita Joshi