NY A04351

Allows individual taxpayers with federal gross income below $40,000 to claim a credit against New York State tax equal to 25% of their federal self-employment tax liability, capped at $500

Limits credit eligibility to taxpayers whose business income comprises at least 70% of their federal gross income in the tax year

Phases out the maximum $500 credit dollar-for-dollar for each dollar of federal gross income above $39,500, eliminating the credit entirely at $40,000 of income

Excludes business entities from eligibility for the credit

Takes effect immediately and applies to taxable years beginning on or after January 1, 2016