Exempts qualified military benefits from inclusion in a resident's adjusted gross income, including any allowance or in-kind benefit other than personal use of a vehicle, received by any former member of the uniformed services of the United States or any dependent of such member by reason of such member's status or service as a member of such uniformed services.
Summary
S05104 would amend New York’s Tax Law to exclude certain qualified military benefits from a resident’s adjusted gross income for state income tax purposes. The bill covers compensation and related allowances or in-kind benefits, other than personal use of a vehicle, received by a former member of the U.S. uniformed services or a dependent because of that member’s military status or service, to the extent those amounts are taxable under federal law.
The exemption would apply beginning with taxable years starting on or after January 1, 2026, and would take effect immediately upon enactment. In practical terms, the bill would reduce New York taxable income for eligible veterans and certain dependents by conforming state tax treatment more favorably to military-related benefits.
Impact
The bill would amend subdivision (c) of section 612 of the Tax Law by adding a new exclusion from New York adjusted gross income for specified military compensation and benefits. This would lower state taxable income for affected veterans and dependents, potentially reducing state income tax liability for those taxpayers and modestly reducing state revenue. It would not change federal tax law, but instead would decouple New York tax treatment from federal inclusion for these benefits where applicable.
Sentiment
Based on the bill’s subject matter and the absence of recorded opposition, the measure appears to be generally supportive of veterans and military families. The proposal is framed as a tax relief measure for former service members and their dependents, suggesting a favorable policy intent and likely broad sympathy among lawmakers. No committee transcript or vote record is available here to show formal debate or division.
Contention
The main policy issue is the revenue impact of exempting additional income from state taxation, which could concern budget-focused lawmakers or fiscal analysts. Another possible point of discussion is the scope of the exclusion—specifically which military-related payments qualify, how dependents are treated, and the exclusion of personal use of a vehicle from the benefit definition. No specific objections or named opponents appear in the available record.
An Act To Amend Title 30 Of The Delaware Code Relating To A Tax Exemption For National Guard And Uniformed Services Of The United States Reserve Members.
Relates to death benefits for members of the uniformed force of the New York city department of sanitation and members of the uniformed force of the New York city department of correction; establishes that the beneficiaries of a member who would have been entitled to a service retirement benefit at the time of such member's death may elect to receive, in a lump sum, an amount payable which shall be equal to the pension reserve that would have been established had the member retired on the date of such member's death, or the value of the death benefit and the reserve-for-increased-take-home-pay, if any, whichever is greater.
Expands the definition of veteran to include members of the United States public health service to provide such members with access to the same benefits as members of the United States armed forces.