Income tax highlights for 2016
General changes for 2016
- Extension of e-file mandate
The current e-file mandate for individuals and tax preparers has been extended through tax year 2019. For more information on the e-file mandate, see our website.
- Extension of certain voluntary compliance initiatives
Reporting requirements and related administrative provisions concerning the disclosure of certain federal and New York State reportable transactions and related information regarding tax shelters have been extended to July 1, 2019.
- Partnership return due date
For tax years beginning in 2016, the filing deadline for partnership returns is moving from the fifteenth day of the fourth month to the fifteenth day of the third month following the close of the partnership year (now March 15 for calendar-year filers instead of April 15). For more information see TSB-M-16(9)C, 7(I), Amendments to Tax Return Due Dates and Extensions.
- Recoupment of School Tax Relief (STAR) exemption
For tax years beginning in 2016, if the Tax Department receives information that a taxpayer has improperly claimed a STAR exemption, the department may issue a levy or lien against any New York State personal income tax refund that the taxpayer claims.
- Cost of living adjustment
The New York State standard deduction and tax rate schedules have been adjusted to reflect the cost of living adjustment required under the Tax Law.
Changes to existing credits
- Property tax freeze credit
For tax year 2016, the advance payment credit included increases in municipal taxes, including property taxes levied by counties, cities, towns, villages, and special districts. These checks were generally mailed in the fall of 2016. For more information about this credit (including eligibility), see our website.
- NYC school tax credit
Beginning with tax year 2016, the credit will now be a New York State personal income tax credit for residents of New York City. Previously, the credit was a New York City personal income tax credit for residents of New York City.
- Low-income housing credit
The statewide aggregate dollar amount of credit has been increased through 2020. See Form DTF-624, Claim for Low-Income Housing Credit, and its instructions.
- Hire a veteran credit
This credit has been extended through December 31, 2018. See Form IT-643, Hire a Veteran Credit, and its instructions.
- Empire State commercial production credit
This credit has been extended through December 31, 2018. See Form IT-246, Claim for Empire State Commercial Production Credit, and its instructions.
- Transportation of persons with disabilities credit
This credit has been extended through December 31, 2022. See Form IT-236, Credit for Taxicabs and Livery Service Vehicles Accessible to Persons with Disabilities, and its instructions.
- Noncustodial parent earned income credit
This credit has been permanently extended. Previously, this credit was due to expire December 31, 2016. See Form IT-209, Claim for Noncustodial Parent New York State Earned Income Credit, and its instructions.
- Clean heating fuel credit
This credit has been extended through December 31, 2019. However, beginning on or after January 1, 2017, this credit will not apply to bioheat that is less than six percent biodiesel per gallon of bioheat. See Form IT-241, Claim for Clean Heating Fuel Credit, and its instructions.
- Excelsior jobs program tax credit
Beginning with tax year 2016, there is a reduction in the aggregate credit amount. This reduction runs through tax year 2024 and allows for unallocated program credit funds to be used through December 31, 2026. See Form IT-607, Claim for Excelsior Jobs Program Tax Credit, and its instructions.
- Alcoholic beverage production credit
The credit, previously known as the beer production credit, is now known as the alcoholic beverage production credit. This credit is expanded to include the production of cider, wine, and liquor. See Form IT-636, Alcoholic Beverage Production Credit, and its instructions.
- Economic transformation and facility redevelopment program tax credit
Beginning with tax year 2016, a taxpayer who is an owner of a closed facility may include in the cost basis of the credit, asbestos removal costs, rental of demolition equipment, personnel costs to operate the demolition equipment, costs to remove and dispose of demolition debris, and the cost of any permits, licenses, and insurance necessary for the demolition. See Form IT-633, Economic Transformation and Facility Redevelopment Program Tax Credit, and its instructions.
- Urban youth jobs program tax credit
Beginning with tax year 2016, there is an increase in funds for programs 4 and 5. The total amount to be allocated for the credit increases from $20 million to $50 million for programs 4 and 5. See Form IT-635, Urban Youth Jobs Program Tax Credit, and its instructions.
- Property tax relief credit
A new advance payment credit is now available for individuals who reside outside of NYC. These checks were generally mailed in the fall of 2016. For more information about this credit (including eligibility), see our website.
- STAR credit
New homeowners will receive a STAR credit in the form of a check, rather than receiving a property tax exemption (if they qualify for STAR). The dollar value of the credit will be the same as the property tax exemption. For more information about this credit (including eligibility), see our website.
New Voluntary Contributions
- Autism awareness and research fund
Taxpayers may donate any whole dollar amount to be used to support autism awareness projects and autism research projects.