Provides that the aggregate amount of pass-through entity credits claimed by all partners, members or shareholders of an electing partnership or electing S corporation shall not exceed eighty-seven percent of the tax due.
STATE OF NEW YORK
________________________________________________________________________
7643
2025-2026 Regular Sessions
IN SENATE
April 24, 2025
___________
Introduced by Sen. GOUNARDES -- read twice and ordered printed, and when
printed to be committed to the Committee on Investigations and Govern-
ment Operations
AN ACT to amend the tax law, in relation to the limitation on the pass-
through entity tax credit and the city pass-through entity tax credit
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Subsection (b) of section 863 of the tax law, as added by
2 section 1 of part C of chapter 59 of the laws of 2021, is amended to
3 read as follows:
4 (b) Limitation on credit. The aggregate amount of credits claimed by
5 all partners, members or shareholders of an electing partnership or
6 electing S corporation pursuant to subsection (a) of this section shall
7 not exceed eighty-seven percent of the tax due under subsection (a) of
8 section eight hundred sixty-two of this article from such electing part-
9 nership or electing S corporation for the taxable year.
10 § 2. Subsection (b) of section 870 of the tax law, as added by section
11 1 of subpart B of part MM of chapter 59 of the laws of 2022, is amended
12 to read as follows:
13 (b) Limitation on credit. The aggregate amount of credits claimed by
14 all partners, members or shareholders of an electing city partnership or
15 an electing city resident S corporation pursuant to subsection (a) of
16 this section shall not exceed eighty-seven percent of the tax due under
17 section eight hundred sixty-nine of this article from such electing city
18 partnership or electing city resident S corporation for the taxable
19 year.
20 § 3. This act shall take effect immediately and shall apply to taxable
21 years beginning on or after the first of January next succeeding the
22 date on which it shall have become a law.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD11771-01-5
