Prohibits certain itemized deductions for charitable contributions for New York residents.
Summary
This bill amends the New York tax law to eliminate the itemized deduction for charitable contributions for certain high-income taxpayers. Specifically, it provides that an individual with New York adjusted gross income over $10 million may not claim a New York itemized deduction for charitable contributions allowed under section 170 of the Internal Revenue Code. The bill removes the prior law’s limitation that had allowed only 25 percent of such deductions for this income group, replacing it with a full disallowance.
The measure takes effect immediately and applies to taxable years beginning on or after that date. In practical terms, it would increase state tax liability for affected high-income filers by preventing them from reducing New York taxable income through charitable giving deductions, while leaving the underlying federal charitable deduction rules unchanged.
Impact
The bill would amend section 615(g) of the Tax Law to change how New York treats charitable contribution deductions for individuals with New York adjusted gross income above $10 million. It would eliminate a state itemized deduction that previously existed in limited form for this group, thereby narrowing the tax benefits available to very high-income residents and increasing state revenue from affected taxpayers. The change would apply only to New York state income tax and would not alter federal tax law or deductions for taxpayers below the income threshold.
Sentiment
No committee transcript or vote record is available, so there is no documented floor or committee sentiment to assess. Based on the bill text and caption, the measure appears to be a targeted revenue-raising tax change focused on high-income residents, which typically draws support from those favoring progressive taxation and opposition from taxpayers and advocates concerned about charitable giving incentives.
Contention
The main point of contention is likely whether disallowing charitable contribution deductions for taxpayers over $10 million discourages philanthropy or is a justified way to increase tax fairness and state revenue. Supporters would likely argue that very high-income taxpayers can absorb the loss of the deduction and that the state should not subsidize charitable giving at that income level. Opponents would likely contend that the change penalizes charitable donations, could reduce incentives for large gifts to nonprofits, and singles out a narrow class of taxpayers for less favorable treatment.