Establishes the New York manufacturing adequate domestic equipment credit (NY MADE); defines medical equipment; makes related provisions.
Summary
S00853 would create a new state tax credit called the New York manufacturing adequate domestic equipment credit, or NY MADE, for taxpayers that produce medical equipment or personal protective equipment in New York. The bill defines “medical equipment” broadly as machinery, apparatus, and other devices used to cure, treat, prevent, or alleviate illness or physical incapacity, and ties the credit to production occurring in-state during the taxable year.
The credit amount depends on the taxpayer’s production history. Businesses already producing qualifying equipment in 2025 or January 2026 could claim a credit equal to 20 percent of the wholesale market value of production above their 2025 monthly average, while businesses that had not previously produced such supplies could claim 30 percent of the wholesale market value of qualifying production. The bill applies to taxpayers under the corporate franchise tax and personal income tax provisions, and it is effective immediately for taxable years beginning on or after January 1, 2026.
Impact
The bill would amend the Tax Law by adding a new section 50 and conforming provisions in Article 9-A and Article 22 so the credit can be claimed by corporations and individual taxpayers, including pass-through entities. It would also allow unused credit amounts to be treated as overpayments subject to refund or credit, while prohibiting interest on those refunds. In practical terms, the measure would reduce state tax liability for qualifying manufacturers and create a targeted incentive to expand or begin production of medical and protective equipment in New York.
Sentiment
Based on the bill’s sponsors and the absence of recorded opposition, the measure appears to be framed positively as an economic development and supply-chain resilience proposal. The sponsors are a group of Senate Republicans, suggesting support for domestic manufacturing, job creation, and reducing dependence on out-of-state or foreign suppliers. No committee transcript or vote history is available in the provided materials, so there is no documented floor or committee debate to indicate broader legislative sentiment.
Contention
The main policy question raised by the bill is whether a production-based tax credit is the best way to encourage domestic manufacturing of medical and protective equipment, and whether the state should subsidize both new entrants and existing producers at different rates. Potential points of contention include the fiscal cost to the state, the breadth of the definition of qualifying equipment, and whether the credit could be used by firms that would have expanded production without the incentive. Because no hearing transcript or vote record is provided, no specific objections or supporters beyond the sponsors can be identified.
Expands pharmacy benefit management services to include the management or administration of benefits relating to durable medical equipment; defines "durable medical equipment"; relates to pharmacy or durable medical equipment provider audits by pharmacy benefit managers.
Provides corporation business tax credit for certain investment in manufacturing equipment and manufacturing facility renovation, modernization, and expansion, or hiring and training of new employees for manufacturing purposes.
Provides corporation business tax credit for certain investment in manufacturing equipment and manufacturing facility renovation, modernization, and expansion, or hiring and training of new employees for manufacturing purposes.
Payment rates established for certain substance use disorder treatment services, and vendor eligibility recodified for payments from the behavioral health fund.
Cover Outstanding Vulnerable Expansion-eligible Residents Now Act or the COVER Now Act This bill establishes a demonstration program to allow local governments to provide health benefits to the Medicaid expansion population in states that have not expanded Medicaid. Under the program, local governments may provide coverage for individuals who are newly eligible for Medicaid under the Patient Protection and Affordable Care Act (i.e., the Medicaid expansion population) for a maximum of 10 years, or until their respective states expand Medicaid. The bill provides a 100% federal matching rate for the first three years of program participation. The bill prohibits states from taking certain actions against participating localities, such as withholding funding, increasing taxes, or restricting provider participation. States that violate these requirements are subject to certain funding penalties.