Provides a personal income tax exemption for certain professional athletes residing in New York state of up to two hundred fifty thousand dollars of income.
Summary
This bill creates a new personal income tax exemption for certain professional athletes who are domiciled in New York, maintain their primary residence in the state for at least 183 days during the taxable year, and have a current written player contract with a qualifying New York sports franchise. The exemption would allow these athletes to subtract up to the first $250,000 of compensation from federal adjusted gross income for New York tax purposes.
The bill defines qualifying franchises broadly to include teams based in New York that play home games in the state and compete in MLB, NFL, NBA, NHL, MLS, NWSL, WNBA, or PWHL. The exemption applies only to income directly tied to the athlete’s professional duties, including salary, bonuses, performance incentives, and signing bonuses, and the tax commissioner is authorized to adopt implementing regulations. The act would take effect immediately and apply to taxable years beginning on or after January 1, 2026.
Impact
The bill would amend section 612 of the New York Tax Law by adding a new income subtraction for qualifying professional athletes, reducing taxable income for a narrow class of high-income residents tied to in-state professional sports franchises. It would create a new state tax preference rather than altering the tax treatment of other residents or businesses, and it would require administrative rulemaking by the Department of Taxation and Finance to implement eligibility and compliance standards.
Sentiment
No committee transcript or vote record is available, so there is no documented legislative debate or recorded support/opposition in the provided materials. Based on the bill text and caption, the measure appears designed as a targeted tax relief proposal for professional athletes who live and play in New York, but the available record does not show whether lawmakers viewed it favorably or critically.
Contention
The main policy issue is the narrowness and preferential nature of the tax break: it benefits only professional athletes with New York residency and contracts with specified in-state franchises, which could raise fairness and revenue concerns for other taxpayers. Another likely point of contention is the scope of eligible leagues and the $250,000 cap on exempt income, since the bill extends the benefit to several major men’s and women’s professional leagues but only for compensation directly connected to athletic duties. No specific objections or supporters are identified in the provided record.
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Increases the amount of the credit against taxes for long-term care insurance from twenty to forty percent and from one thousand five hundred dollars to two thousand five hundred dollars.
Increases the income range up to fifty thousand dollars ($50,000) and tax credit up to eight hundred fifty dollars ($850), for elderly and disabled persons who own or rent their homes.
Increases the income range up to fifty thousand dollars ($50,000) and tax credit up to eight hundred fifty dollars ($850), for elderly and disabled persons who own or rent their homes.
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Increases the excess limit for funds in the New York state thoroughbred breeding and development fund from seventy-five thousand dollars to five hundred thousand dollars.
Increases the excess limit for funds in the New York state thoroughbred breeding and development fund from seventy-five thousand dollars to five hundred thousand dollars.