New York Senate Bill S03943

New York 2025-2026 Regular Session

• Introduced: 1/30/25
• Refer: 1/30/25
• Refer: 1/7/26

Caption

Provides that the franchise tax on businesses with a business income base over five million dollars shall be nine percent of such income base.

Summary

This bill amends New York’s Tax Law section 210, which governs the corporation franchise tax, to increase the tax rate applied to certain businesses with a business income base exceeding $5 million. Under current law in the bill text, that rate is 7.25 percent for taxable years beginning on or after January 1, 2021 and before January 1, 2027. The bill would replace that provision for taxable years beginning on or after January 1, 2026, setting the rate at 9 percent for taxpayers above the $5 million threshold. The measure is targeted rather than broad-based: it does not change the tax treatment for small business taxpayers, manufacturers, or qualified emerging technology companies, which remain subject to separate existing calculations. The bill takes effect immediately, but its operative tax change would apply beginning with taxable years starting in 2026.

Impact

The bill would increase the franchise tax liability for larger businesses operating in New York that have a business income base over $5 million, raising the applicable rate from 7.25 percent to 9 percent beginning in tax years starting January 1, 2026. It would amend the Tax Law’s franchise tax computation rules in section 210, affecting corporate taxpayers subject to the business income base tax while leaving existing special rules for small businesses, manufacturers, and qualified emerging technology companies intact.

Sentiment

Based on the bill text and the absence of recorded committee debate or votes, the overall sentiment appears to be fiscally motivated and supportive of higher taxation on larger businesses, likely framed as a revenue measure. There is no documented opposition or recorded vote history in the provided materials, so no clear bipartisan or partisan split can be inferred from the available context.

Contention

The main point of contention is the higher tax burden on businesses with more than $5 million in business income base, which could be viewed by critics as increasing costs for larger employers and potentially affecting investment or competitiveness. Supporters would likely argue that the change applies only to higher-income businesses and preserves preferential treatment for smaller firms and certain targeted sectors. No specific objections, amendments, or committee arguments are provided in the record supplied here.