New York Assembly Bill A06850

New York 2025-2026 Regular Session

• Introduced: 3/14/25
• Refer: 3/14/25
• Refer: 1/7/26

Caption

Increases from 20% to 100% the portion of real property taxes that a manufacturer may take as a business franchise or personal income tax credit.

Summary

This bill increases the existing New York tax credit for qualified manufacturers by raising the allowable credit from 20 percent to 100 percent of real property taxes paid on property in New York that is principally used for manufacturing. The change applies both to the business franchise tax credit and the personal income tax credit, so the benefit would be available to manufacturers organized as businesses as well as certain individual taxpayers who qualify under the personal income tax provisions. Under current law, manufacturers can claim only a partial credit for eligible real property taxes. This bill would make that credit fully refundable in the sense that the entire eligible property tax amount could be used as a credit, subject to the existing rule that the same taxes cannot also be used to claim another credit. The bill takes effect immediately and applies to taxable years beginning on or after January 1, 2025.

Impact

The bill would amend sections of the Tax Law governing the business franchise tax and the personal income tax to substantially expand the real property tax credit for qualified New York manufacturers. It would reduce state tax liability for eligible manufacturers by allowing a full credit for qualifying property taxes paid on manufacturing property, potentially lowering operating costs and improving after-tax cash flow for in-state manufacturing facilities. The measure would not change local property tax rates directly, but it would shift more of the tax burden away from manufacturers through the state tax system.

Sentiment

Based on the bill text and the sponsor list, the measure appears strongly supportive of manufacturing interests and tax relief for businesses. The bill is sponsored by multiple Assembly members, suggesting a pro-manufacturing, pro-business policy goal. No committee discussion or recorded votes were provided, so there is no evidence in the supplied materials of opposition or amendment activity, but the policy direction is clearly favorable to manufacturers.

Contention

The main policy issue is the cost to state revenues versus the benefit to manufacturers. Supporters would likely view the bill as a way to strengthen New York manufacturing, encourage investment, and offset high property tax costs, while critics may question whether providing a full credit is an efficient use of tax expenditures or whether it disproportionately benefits a narrow class of taxpayers. Another possible point of contention is whether the credit should be expanded to 100 percent for all qualified manufacturers or targeted more narrowly to specific industries, regions, or property types.