The final SFY 2026–27 Revenue Bill (S.9009-C/A.10009-C) does not raise New York’s corporate franchise tax rates or personal income tax rates. The bill enacts a broad package of tax, gaming, and property tax changes supporting the state’s fiscal plan.
Major tax provisions include enhancements to the child and dependent care credit, exclusion of certain tips from New York adjusted gross income, preservation of charitable contribution deductions, extension of current corporate tax rates, and modifications to farmer eligibility definitions across multiple agricultural tax credits.
The bill also extends or expands numerous existing incentives, including the commercial security tax credit, residential energy storage sales tax exemption, alternative fuels tax exemptions, vending machine sales tax exemptions, and brownfield redevelopment tax credits.
Additional provisions establish a sales tax reregistration and penalty discount program, create the POWER energy rebate credit, expand food donation incentives for farmers, and exclude certain IRC §962 election distributions from New York personal income tax. The final bill deleted the Vapor Product Distributor Tax, as noted below.
The bill also contains significant real property tax and gaming-related provisions. It expands rent increase exemption and property tax relief programs for seniors, persons with disabilities, and certain disabled veterans; authorizes New York City to impose a surcharge on non-primary residences; and makes technical corrections to STAR exemption and credit programs.
In the gaming and racing sectors, the legislation updates pari-mutuel wagering rules, extends simulcasting and seasonal licensing provisions, reforms off-track betting corporation governance, authorizes additional vendor fees for video lottery facilities, and establishes a standardbred horse drug testing program funded through race entry fees.
The bill further supports food insecurity initiatives by authorizing student meal donation programs at colleges and universities and accelerating the implementation of related sales tax exemptions.
Please find the attached table outlining the bill by section. The table highlights deletions and additions in yellow.
Intentionally Deleted Sections from the Governor’s Executive Budget Proposal
- Part H — PTET Election Deadline: Would extend the Pass-Through Entity Tax (PTET) election deadline from March 15 to September 15 and include NYS/NYC PTET reduction proposals.
- Part L — Vapor Product Distributor Tax / Registry: Would establish a vapor product distributor tax and registry requirements.
- Part O — EV Charging Sales Tax: Would have created a sales tax exemption for electricity used in EV charging.
Added Sections
- Part AA: Exempts from New York personal income tax certain distributions that become federally taxable because a taxpayer made a federal IRC §962 election.
- Part BB: Increases New York’s tax credit for farmers who donate food to food pantries.
- Part CC: Authorizes colleges, universities, and schools to allow students to donate unused meal funds, meals, or meal points to students experiencing food insecurity.
- Part DD: Reforms governance rules for regional off-track betting corporations.
- Part EE: Expands and clarifies the property tax exemption available to certain disabled veterans.
- Part FF: Creates the “Protecting Our Wallets Energy Rebate” (POWER) credit.
- Part GG: Establishes a standardbred horse total carbon dioxide (TCO2) on-track drug testing program.
- Part HH: Authorizes New York City to impose a surcharge on residential properties that are not used as a primary residence.
- Part II: Authorizes additional vendor fees for video lottery gaming facilities and racetracks.
- Part JJ: Extends the availability period for certain brownfield redevelopment and remediation tax credits.