New York Assembly Bill A10724

New York 2025-2026 Regular Session

• Introduced: 3/27/26
• Refer: 3/27/26

Caption

Provides an exemption from taxes on income to certain taxpayers who claim at least one dependent under the age of five

Summary

A10724 would amend the New York Tax Law to create a new income tax exemption for certain taxpayers who claim at least one dependent child under age five. For eligible filers, the first $250,000 of income would be exempt from the tax imposed by the article, so long as the taxpayer has New York adjusted gross income of up to $5 million. The bill applies to taxable years beginning on or after January 1, 2026, and takes effect immediately upon enactment. The bill also directs the Commissioner of Taxation and Finance to adopt rules and regulations to verify the accuracy of returns claiming the exemption. In practical terms, the measure would reduce taxable income for qualifying households with very young children, potentially lowering their state income tax liability while creating an administrative verification requirement for the tax department.

Impact

This bill would amend section 616 of the Tax Law by adding a new exemption tied to dependent children under age five. It would affect individual income taxpayers who meet the income cap and dependency requirements, and it would require the Department of Taxation and Finance to establish procedures to confirm eligibility and prevent improper claims. The fiscal effect would likely be a reduction in state income tax revenue from qualifying filers.

Sentiment

Based on the bill text and available legislative context, the measure appears to be framed as a family tax relief proposal aimed at supporting households with young children. There is no recorded committee debate or vote history in the provided materials, so no formal opposition or support is documented here. The bill’s structure suggests a generally favorable policy intent toward working families, but the absence of transcripts means the broader legislative sentiment cannot be measured from the available record.

Contention

The main potential points of contention are the size and breadth of the tax benefit, the income threshold, and the administrative burden of verifying eligibility. Supporters would likely emphasize relief for families with young children and the policy goal of easing early-childhood expenses, while critics might question whether the exemption is too generous for households with incomes up to $5 million or whether it creates complexity and revenue loss. Because no committee discussion or votes are provided, specific named objections or supporters are not identifiable from the record.