Adds certain gains with respect to small business stock excluded pursuant to section 1202 of the Internal Revenue Code as an increase to adjusted gross income.
Impact
The proposed changes in A10318 are expected to impact state tax revenues by potentially lowering the amount collected from individuals who realize gains on small business investments. Proponents argue that this change will foster a more favorable investment climate for small businesses, encouraging entrepreneurship and economic growth. By aligning state tax treatment with federal provisions concerning small business stock, the bill is intended to streamline the taxation process for investors and enhance the competitiveness of New York as a hub for small business ventures.
Summary
Bill A10318 proposes amendments to the New York tax law, specifically relating to the treatment of certain gains from small business stock as excluded from federal adjusted gross income starting from taxable years beginning on January 1, 2025. The bill seeks to clarify the applicability of section 1202 of the Internal Revenue Code, which allows for the exclusion of capital gains from the sale of qualified small business stock under specific conditions. This amendment aims to provide tax relief to investors in small businesses by enabling them to exclude such gains from their state tax liabilities.
Conclusion
Overall, A10318 reflects ongoing efforts to adapt state tax laws to facilitate support for small businesses, while also navigating the complexities of taxation policy and broader fiscal responsibilities. The bill illustrates the tension between promoting economic development through tax relief and maintaining necessary state revenue levels for public services.
Contention
However, the amendment is not without its detractors. Critics may express concerns regarding the potential reduction in state tax revenues, which could affect funding for public services. Additionally, discussions could focus on the implications of favoring certain investments over others, which could raise questions about equity in tax policy. Moreover, there might be debates over whether such tax incentives are the most effective way to promote small business growth, as opposed to broader measures that address structural economic challenges.
Same As
Adds certain gains with respect to small business stock excluded pursuant to section 1202 of the Internal Revenue Code as an increase to adjusted gross income.
Adds certain gains with respect to small business stock excluded pursuant to section 1202 of the Internal Revenue Code as an increase to adjusted gross income.
Provides that certain deductions allowable under the internal revenue code related to certain types of property and domestic research or experimental expenditures shall be added to federal adjusted gross income.
Provides that certain deductions allowable under the internal revenue code related to certain types of property and domestic research or experimental expenditures shall be added to federal adjusted gross income.
Revenue and taxation; Senior Service Corps Act of 2025; adjustments to Oklahoma adjusted gross income and taxable income; support services; schools; effective date.
Revenue and taxation; Senior Service Corps Act of 2025; adjustments to Oklahoma adjusted gross income and taxable income; support services; schools; effective date.
Removing obsolete reference to global intangible low-taxed income provided for under the federal internal revenue code in determining Kansas adjusted gross income.