Tax Cuts On The Way, But Only For Certain New Yorkers
Governor Kathy Hochul announced tax cuts and rebates, but only for certain New Yorkers.
Middle-Class Tax Cuts
Her plan will accelerate middle-class tax cuts for 6 million residents that began in 2018. The program was not scheduled to be fully implemented until 2025, but Gov. Hochul's plan will speed it up by two years to 2023.
To reflect the economic devastation brought on by COVID-19 and rather than waiting for small, incremental benefits to take effect for middle class taxpayers, Governor Hochul will accelerate relief for families and start providing the full benefit of the tax cut two years earlier – fully phasing-in the middle class tax cut beginning in the 2023 tax year, the earliest time possible.
Property Tax Rebates
In addition, the middle class will receive a $1 Billion Property Tax Rebate. More than 2 million New Yorkers will get much-needed financial relief in the way of a property tax rebate. Eligible middle-class and low-income homeowners will see benefits in the fall of 2022.
Small Business Tax Credits
New York will provide $100 million in tax relief for small businesses.
Current law allows for a 5 percent subtraction modification for sole proprietorships and farm businesses with incomes of less than $250,000 — benefitting just 5,000 taxpayers each year. The Governor will raise this modification and include other entities with New York source gross income of up to $1.5 million, covering some 195,000 small businesses in all — putting more money back in the hands of more hard-working New Yorkers.
Farm Worker Tax Credits
Farm owners will be able to take advantage of an increase to the workforce tax credit. In addition, a new workforce tax credit will be created.
Doubling the Farm Workforce Retention Tax Credit: Farm owners and employers are currently eligible to receive a refundable tax credit of a fixed dollar amount per eligible farm employee through 2024. To help farms retain their workers, the State will double the yearly fixed dollar amount per eligible employee and extend the program to 2025.
Creating a New Overtime Tax Credit: The State will create a permanent refundable tax credit on overtime hours for any size farm in New York State, to offset increasing costs to farmers.