NY A10255

Reduces the business income base tax rate for businesses with income up to $400,000 to 4% starting January 1, 2027, and further reduces it to 2.5% starting January 1, 2028

Creates a tiered tax structure for businesses with income between $400,000 and $500,000, with rates ranging from 6.5% to 32% on excess amounts depending on the tax year

Expands the small business income threshold from $250,000 to $500,000 for sole proprietors and farm businesses qualifying for the 15% income modification deduction

Removes the requirement that small businesses must employ one or more persons to qualify for tax benefits

Applies to both New York State tax law and New York City administrative code, effective for taxable years beginning on or after January 1, 2027