On March 31, 2014, New York Governor Andrew Cuomo signed legislation enacting the state’s FY 14-15 budget. In addition to substantial tax reform, the budget enacts significant changes to the state’s tax credits regime. The governor’s adopted budget differs from proposed tax credits reform in prior budget versions. Our Insight discusses notable changes that were made since the last budget draft and highlights some of the key new tax credits that were adopted.
For tax years beginning on or after January 1, 2014, some of the key tax credit changes include revising the definition of a qualified New York manufacturer and creating a real property tax credit for qualified New York manufacturers. Several existing tax credits would also be revised.
Finally, in addition to the creation and modification of tax credits, the legislation revises the manner in which the MTA Surcharge tax is calculated for taxpayers claiming tax credits on their New York State tax returns