Adds certain gains with respect to small business stock excluded pursuant to section 1202 of the Internal Revenue Code as an increase to adjusted gross income.
STATE OF NEW YORK
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8921--A
IN SENATE
January 15, 2026
___________
Introduced by Sen. GOUNARDES -- read twice and ordered printed, and when
printed to be committed to the Committee on Budget and Revenue --
committee discharged, bill amended, ordered reprinted as amended and
recommitted to said committee
AN ACT to amend the tax law, in relation to modifications increasing
federal adjusted gross income
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Paragraph (b) of subdivision 9 of section 208 of the tax
2 law is amended by adding a new subparagraph 28 to read as follows:
3 (28) For taxable years beginning on or after January first, two thou-
4 sand twenty-five, the amount of any gain excluded pursuant to section
5 1202 of the Internal Revenue Code, with respect to such exclusion the
6 amount of the deduction allowable under section 1202 of the Internal
7 Revenue Code.
8 § 2. Subsection (b) of section 612 of the tax law is amended by adding
9 a new paragraph 44 to read as follows:
10 (44) For taxable years beginning on or after January first, two thou-
11 sand twenty-five, the amount of any gain excluded pursuant to section
12 1202 of the Internal Revenue Code, with respect to such exclusion the
13 amount of the deduction allowable under section 1202 of the Internal
14 Revenue Code.
15 § 3. Paragraph 2 of subdivision (b) of section 1503 of the tax law is
16 amended by adding a new subparagraph (AA) to read as follows:
17 (AA) For taxable years beginning on or after January first, two thou-
18 sand twenty-five, the amount of any gain excluded pursuant to section
19 1202 of the Internal Revenue Code, with respect to such exclusion the
20 amount of the deduction allowable under section 1202 of the Internal
21 Revenue Code.
22 § 4. This act shall take effect immediately, and shall apply to taxa-
23 ble years beginning on or after January 1, 2025.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD14477-03-6
