Introduction

Introduction

The thirty-third annual New York State Tax Expenditure Report has been prepared by the Department of Taxation and Finance and the Division of the Budget in accordance with the provisions of Executive Law § 181, which mandates that any information relating to tax expenditures must be furnished in accordance with the secrecy provisions of the Tax Law.

As required by statute, the report includes:

• Tax expenditures associated with the:
  • personal income tax (Tax Law Article 22),
  • corporate franchise tax (Tax Law Article 9-A),
  • insurance tax (Tax Law Article 33),
  • corporation and utility taxes (Tax Law Article 9),
  • sales and compensating use tax (Tax Law Article 28),
  • petroleum business tax (Tax Law Article 13-A),
  • real estate transfer tax (Tax Law Article 31).
• the provisions of law authorizing the tax expenditures, their effective dates, and, where applicable, the date that such tax expenditures expire or are reduced;
• estimates (if reliable data are available) of the costs of the tax expenditures for the current taxable or calendar year and the five preceding years;
• an analysis of tax expenditure proposals included in the Governor’s 2026–27 Executive Budget; and
• cautionary or advisory notes regarding the use of the report and data limitations.

As provided in prior years, the report also includes information that summarizes:

• tax expenditures that appear in more than one article of the tax law, for example, cross‑article tax expenditures; and
• state legislation enacted in recent years that added, deleted or modified certain tax expenditure provisions.

This report also includes a glossary of terms.