Summary of 2025 corporation tax and personal income tax changes

Alternative fuels and electric vehicle recharging property credit (Articles 9, 9-A and 22)

The credit is extended through tax year 2028.

For more information, visit Alternative fuels and electric vehicle recharging property credit.

[Part Z of Chapter 59 of the Laws of 2025; Tax Law §§ 187-b(6), 210-B.30(f) and 606(p)(6)]

Brownfield tax credits (Articles 9-A, 22 and 33)

Special rules now apply to claim the brownfield redevelopment tax credit and remediated brownfield credit for real property taxes on sites located in the Renaissance Commerce Park in Lackawanna, New York.

For more information, visit Special eligibility rules for the brownfield tax credits.

[Part PP of Chapter 59 of the Laws of 2025]

Central Business District toll tax credit (Article 22)

Beginning with the 2025 income tax return, certain residents of the Congestion Relief Zone may claim a refundable credit equal to the total amount of Central Business District tolls they paid.

For more information, visit Central Business District toll tax credit.

[Subpart F of Part ZZZ of Chapter 59 of the Laws of 2019; Tax Law § 606(jjj)]

Clean heating fuel credit (Articles 9-A and 22)

The credit for purchases of bioheating fuel used for residential purposes is extended through tax year 2028.

For more information, visit Clean heating fuel credit.

[Part Y of Chapter 59 of the Laws of 2025; Tax Law §§ 210-B.25(a) and 606(mm)(1)]

Credit for employment of persons with disabilities (Articles 9-A and 22)

For tax years beginning on or after January 1, 2025, the credit amount is increased to the first $5,000 of qualified first or second year wages per employee.

The credit amount remains the same for Article 33 and Article 9 taxpayers.

For more information, visit Credit for employment of persons with disabilities.

[Part U of Chapter 59 of the Laws of 2025; Tax Law §§ 210-B.12 and 606(o)]

Empire State child credit (Article 22)

The credit is enhanced for tax years 2025-2027.

For tax year 2025, taxpayers may claim up to:

$1,000 per qualifying child under the age of four, and
$330 per qualifying child aged four through 16.

For tax years 2026 and 2027, taxpayers may claim up to:

$1,000 per qualifying child under the age of four, and
$500 per qualifying child aged four through 16.

For more information, visit Empire State child credit.

[Part C of Chapter 59 of the Laws of 2025; Tax Law § 606(c-1)]

Empire State digital gaming media production credit (Articles 9-A and 22)

The credit is enhanced to reduce the required media production costs threshold to a minimum of $50,000 per production.

Digital gaming media production costs have been amended to:

increase the maximum wages paid that are considered eligible production costs to $200,000;
expand on the types of activities and services whose wages will qualify for credit; and
increase the amount of qualified digital gaming media production costs used in the calculation of the credit from $4 million to $5 million per production.

The total amount of production costs required to be incurred and paid in New York State to be eligible for credit has been reduced from 75% to 51% of total costs.

This credit is administered by Empire State Development. For more information, visit Empire State digital gaming media production credit.

[Part K of Chapter 59 of the Laws of 2025; Tax Law §§ 45, 210-B.55 and 606(nnn)]

Empire State film post-production credit (Articles 9-A and 22)

The credit is amended and enhanced to:

Extend the credit through tax year 2036.
Allow taxpayers who submit applications on or after January 1, 2025, to claim the credit in the taxable year in which the qualified film is completed. Taxpayers are no longer required to claim the credit over a two or three year period for amounts that exceed $1 million.
Require a taxpayer whose certificate of tax credit is revoked to recapture the amount of the credit in the taxable year in which the revocation becomes final.
Modify eligibility criteria:
- Qualified post-production costs must be equal to or greater than the lesser of $1 million or 75% of the total post-production cost.
- The costs of visual effects and animation must be equal to or greater than the lesser of $500,000 or 10% of the total post-production cost for visual effects and animation.

This credit is administered by the New York State Governor's Office of Motion Picture & Television Development. For more information, visit Empire State film post-production credit.

[Part I of Chapter 59 of the Laws of 2025; Tax Law §§ 31, 210-B.32 and 606(qq)]

Empire State film production credit (Articles 9-A and 22)

The credit is amended and enhanced to:

Extend the credit through tax year 2036.
Allow taxpayers who submit applications on or after January 1, 2025, to claim the credit in the taxable year that includes the last day of the allocation year of the film. Taxpayers are no longer required to claim the credit over a two or three year period for amounts exceeding $1 million.
Require a taxpayer whose certificate of tax credit is revoked to recapture the amount of the credit in the taxable year in which the revocation becomes final.
Allow an additional 10% for qualified musical scoring production costs incurred within the state when the scoring includes payment to at least five musicians.
Create a new Production Plus Program that allows a qualified production company that produces multiple projects in the state to claim an additional credit equal to 5-10% of the qualified production costs.

This credit is administered by the New York State Governor's Office of Motion Picture & Television Development. For more information, visit Empire State film production credit.

[Part I of Chapter 59 of the Laws of 2025; Tax Law §§ 24, 210-B.20 and 606(gg)]

Empire State independent film production credit (Articles 9-A and 22)

For tax years beginning on or after January 1, 2025, a new refundable credit, administered by the Office of Motion Picture & Television Development (MPTV), is available to eligible taxpayers, who paid or incurred qualified production costs in producing a qualified independent film.

The credit is 30% of qualified costs, with an additional 10% available for each of the following:

wages, salaries, or compensation paid to employees for services performed in certain counties for productions with a minimum budget of $500,000;
production costs paid or incurred for tangible property, or services used in certain counties for productions with a minimum budget of $500,000; and
scoring costs incurred within the New York State, including payments to at least five musicians.

MPTV determines credit eligibility and issues a certificate of tax credit to be claimed in the year the qualified film is completed.

For more information, visit Empire State independent film production credit.

[Part I of Chapter 59 of the Laws of 2025; Tax Law §§ 24-d, 210-B.20-a and 606(gg-1)]

Empire State jobs retention program credit (Articles 9-A, 22 and 33)

The program is amended to:

Expand the credit to all business entities impacted by a natural disaster.
Change the credit rate from a single rate to a rate that varies based on the number of employees.
Limit the credit to $500,000 per emergency declaration event.

This credit is administered by Empire State Development. For more information, visit Empire State Jobs Retention Program Credit.

[Subpart B of Part H of Chapter 59 of the Laws of 2025; Economic Development Law §§ 421-426]

Empire State musical and theatrical production credit (Articles 9-A and 22)

The credit is extended through tax year 2029.

This credit is administered by Empire State Development. For more information, visit Empire State musical and theatrical production credit.

[Part DD of Chapter 59 of the Laws of 2025]

Employee training incentive program (Articles 9-A and 22)

The program will sunset and not apply to tax years beginning on or after January 1, 2029. It will remain available through tax year 2028.

This credit is administered by Empire State Development. For more information, visit Employee Training Incentive Program (E-TIP) tax credit.

[Subpart A of Part H of Chapter 59 of the Laws of 2025; Tax Law §§ 210-B.50 and 606(ddd); Article 22 of the Economic Development Law]

Excelsior jobs program (Articles 9-A, 22 and 33)

The program is amended to:

Extend the tax credit through tax year 2034; and
Include semiconductor supply chain projects, which can qualify for higher credit rates for the Excelsior jobs, investment, and research and development credit components.

This credit is administered by Empire State Development. For more information, visit Excelsior jobs program tax credit.

[Subpart A of Part H of Chapter 59 of the Laws of 2025; Economic Development Law §§ 352.25, 353.1 - 355.3 and 359]

Farm employer overtime credit (Articles 9-A and 22)

For tax year 2025, farm employers who paid farm overtime indirectly to farm employees through a Professional Employer Organization (PEO) can claim the credit for eligible overtime expenses incurred in calendar years 2024 and 2025.

These farm employers must apply to the Department of Agriculture and Markets (AGM) by February 1, 2026 to receive a certificate indicating the amount of eligible overtime expenses they may claim on their 2025 tax.

For tax years beginning on or after January 1, 2026, all farm employers (including those that paid eligible farm overtime indirectly through a PEO) must apply to AGM for a credit certificate. Applications must be submitted by February 1^st of the year following the calendar year in which the expenses occurred.

For more information, visit Farm employer overtime credit.

[Part KK of Chapter 59 of the Laws of 2025]

Farm workforce retention credit (Articles 9-A and 22)

The credit is extended through tax year 2028.

For more information, visit Farm workforce retention credit.

[Part JJ of Chapter 59 of the Laws of 2025; Tax Law § 42(e)]

Geothermal energy system credit (Article 22)

The credit limitation is increased from $5,000 to $10,000 for qualified systems placed in service on or after July 1, 2025.

For tax years beginning on or after January 1, 2026, taxpayers who meet certain income requirements may elect to receive any unused credit amount as a refund.

For more information, visit Geothermal Energy System Credit.

[Part UU of Chapter 59 of the Laws of 2025; Tax Law § 606(g-4)]

Hire a veteran credit (Articles 9-A, 22 and 33)

The credit is extended through tax year 2028.

For more information, visit Hire a veteran credit.

[Part CC of Chapter 59 of the Laws of 2025; Tax Law §§ 210-B.29, 606 (a-2) and 1511(g-1]

Institutional real estate investor modifications (Articles 9-A, 22 and 33)

For tax years beginning on or after January 1, 2025, institutional real estate investors must add back federal depreciation deductions and federal interest deductions for residential properties located in New York State that consist of no more than two dwelling units. No New York State depreciation deduction is allowed for these properties.

The interest add-back does not apply if the interest was paid or accrued in the tax year when the property was sold to an individual for use as their principal residence, or a nonprofit organization whose principal purpose is the creation, development, or preservation of affordable housing.

For more information, see Form CT-225/225-A-I, Instructions for Forms CT-225, CT-225-A, and CT-225-A/B, and Form IT-225-I, Instructions for Form IT-225.

[Subpart B of Part F of Chapter 59 of the Laws of 2025; Tax Law §§ 208.9(c-4), 612(y) and 1503(b)(17)]

Low-income housing credit (Articles 9-A, 22 and 33)

The annual statewide cap on allocations for the credit is increased as shown below:

Effective date	Tax credits increased to
April 1, 2025	$187 million
April 1, 2026	$217 million
April 1, 2027	$247 million
April 1, 2028	$277 million
April 1, 2029	$307 million

This credit is administered by the New York State Division of Housing and Community Renewal. For more information, visit Low-income housing credit.

[Part D of Chapter 59 of the Laws of 2025; Public Housing Law § 22.4]

Mandatory first installment (MFI) and estimated tax threshold increase (Article 9-A)

For tax years beginning on or after January 1, 2026, the MFI and estimated tax payment thresholds for corporations subject to tax under Article 9-A have increased from $1,000 to $5,000. Therefore, S corporations subject to tax under Article 9-A are not required to make estimated tax payments.

Corporations must make an MFI of estimated tax and, if applicable, estimated MTA Surcharge when the second preceding year’s tax exceeds $5,000.

Corporations must also make estimated payments if they can reasonably expect their tax after credits to exceed $5,000.

For corporations subject to tax under Articles 9 and 33, the threshold for franchise, excise, or gross receipts taxes remains $1,000.

For more information, visit Estimated tax requirements for corporations and Form CT-300-I, Mandatory First Installment (MFI) of Estimated Tax for Corporations.

[Part R of Chapter 59 of the Laws of 2025; Tax Law §§ 213-a(a) and 213-b(a)]

Metropolitan commuter transportation mobility tax (MCTMT) (Article 23)

New rates for employers: There are new MCTMT rates for tax quarters beginning on or after July 1, 2025. Also, a new bracket is established for payroll expenses over $2.5 million.

Local government employers: Local government employers whose covered employees are within MCTD Zone 2 are not subject to the MCTMT. Additionally, the new rate for employers whose payroll expense is over $2.5 million attributable to Zone 1 does not apply to local government employers.

For more information, visit Employers: metropolitan commuter transportation mobility tax (MCTMT).

Self-employed individuals: For tax years beginning on or after January 1, 2026, the MCTMT rates on net earnings from self-employment for individuals engaging in the business within the MCTD are:

0.60% (0.0060) of the net earnings attributable to the MCTD within Zone 1, if such earnings exceed $150,000 for the tax year, and
0.34% (0.0034) of the net earnings attributable to the MCTD within Zone 2, if such earnings exceed $150,000 for the tax year.

The $150,000 thresholds are computed on an individual basis for each zone, even for taxpayers filing a joint income tax return.

For more information, visit New York City, Yonkers, and MCTMT.

[Part VV of Chapter 59 of the Laws of 2025; Tax Law §§ 800(b)(5), 800(f) and 801(a)]

New York City income tax elimination credit (Article 30)

For tax years beginning on or after January 1, 2025, a new credit is available to eligible full-year or part-year New York City residents. The credit may reduce or eliminate New York City personal income tax liability.

An eligible taxpayer is a full-year or part-year New York City resident who:

claims one or more dependents,
has a federal adjusted gross income (FAGI) within an applicable income threshold,
does not claim a New York City or New York State Pass-through entity tax (PTET) credit, and
has investment income of $10,000 or less.

For more information, visit New York City income tax elimination credit.

[Part W of Chapter 59 of the Laws of 2025; Tax Law § 1310(h); Administrative Code of the City of New York §11-1706(h)]

New York City musical and theatrical production credit (Articles 9-A and 22)

The credit is extended through tax year 2027. Additionally, the total amount of credit is increased to $400 million.

This credit is administered by Empire State Development. For more information, visit New York City musical and theatrical production tax credit.

[Part L of Chapter 59 of the Laws of 2025; Tax Law § 24-c]

Newspaper and broadcast media jobs program (Articles 9-A and 22)

For tax years beginning on or after January 1, 2025, and ending before January 1, 2028, a new refundable credit is available to eligible businesses in the newspaper publishing or broadcast media sectors.

Empire State Development administers the program, determines eligibility, and issues certificates of tax credit.

For more information, visit Newspaper and broadcast media jobs credit.

[Part AAA of Chapter 56 of the Laws of 2024; Part J of Chapter 59 of the Laws of 2025; Tax Law §§ 49, 210-B.60 and 606(ppp); Article 27 of the Economic Development Law]

Organ donation credit (Article 22)

For tax years beginning on or after January 1, 2025, the subtraction modification for living organ donors (Form IT-225, S-132) is replaced by the organ donation credit.

Full-year New York State residents are allowed a one-time refundable credit of up to $10,000 for unreimbursed expenses related to the donation of one or more organs. The credit must be claimed in the tax year in which the living human organ transplantation occurs.

For more information, see Organ donation credit.

[Part S of Chapter 59 of the Laws of 2025; Tax Law §§ 606(ttt) and 612(c)(38)]

Real property tax credit simplification (Article 22)

For tax years beginning on or after January 1, 2025, eligibility for the credit is based on federal adjusted gross income (FAGI) instead of household income, and the calculation of the credit amount is simplified.

For more information, visit Real property tax credit .

[Part RR of Chapter 59 of the Laws of 2025; Tax Law § 606(e)]

Reporting of federal audit changes under the Bipartisan Budget Act of 2015 (Articles 9-A, 22, 30 and 33)

New requirements are established for reporting federal adjustments resulting from IRS audits under the BBA centralized partnership audit regime.

[Part V of Chapter 59 of the Laws of 2025; Tax Law §§ 211.3, 653(b), 659, 659-a, 681(e), 682(a), 683(c)(1) - (3), 685(h)(2), 687(c), 688(g), 1312(a) and 1515(e)(1)]

Semiconductor tax credits (Articles 9-A and 22)

For tax years beginning on or after January 1, 2025, new refundable credits are available to eligible businesses that operate in New York State and participate in the:

Semiconductor Research and Development Project Program - the credit is up to 15% of qualified investments in semiconductor research and development projects located in New York State.
Semiconductor Manufacturing Workforce Training Incentive Program - the credit is equal to 75% of eligible wages, salaries or other compensation, and training costs.

Empire State Development (ESD) administers the programs and issues certificates of tax credit to eligible businesses.

For more information, visit Semiconductor manufacturing workforce training program credit and Semiconductor research and development credit.

[Subpart A of Part H of Chapter 59 of the Laws of 2025; Tax Law §§ 210-B.61, 210-B.62, 606(rrr) and 606(sss); Articles 17-A and 28 of the Economic Development Law]

Workers with disabilities tax credit (Articles 9-A and 22)

The credit is extended through tax year 2028.

For more information, visit Workers with disabilities tax credit.

[Part BB of Chapter 59 of the Laws of 2025; Labor Law § 25-b]

Updated: December 17, 2025