Start spreading the news. The 2016 New York budget is here and tax credits are a part of it. Although certain provisions are getting a lot of attention, such as the $15 minimum wage and the synchronization of federal and state filing due dates, modifications to tax credits and other incentives are a large part of S.B. 6409/A.B. 9009. Here is a sampling of some of the changes in New York.
The School Tax Relief (STAR) program in New York has been changed from a property tax exemption to a rebate. Under the old program, homeowners with income less than $500,000 would exempt the first $30,000 of their home’s value from school district taxes. There was also an enhanced exemption to taxpayers aged 65 and over who met certain income requirements. The new program does not change the amount that taxpayers will receive, but instead of getting the exemption immediately, taxpayers will get a rebate later, according to The Journal News.
Starting Jan. 1, 2017, farm employers in New York can receive a refundable tax credit for employing workers for a minimum of 500 hours in a year. The credit starts at $250 per employee per year, but the credit amount increases annually until the credit sunsets on Jan. 1, 2022.
The beer production credit in New York has been expanded to all alcoholic beverages. Small producers of wine, cider and liquor can now enjoy the same benefits as craft breweries in the state.
In S.B. 6408/A.B. 9008, another bill related to the budget, New York creates a rebate program for taxpayers who buy electric vehicles. The rebate will be up to $2,000, but the bill does not give guidelines or procedures for implementing the rebate. The bill stipulates that the NYSERDA has one year to provide information on how to apply for the rebate. The rebate should be available in plenty of time for taxpayers hoping to buy a new Tesla Model 3.
The budget also extended the sunset date of several tax credits. The hire a veteran credit and commercial production credit have been extended to Jan. 1, 2019 while the clean heating fuel credit now lasts until Jan. 1, 2020. Meanwhile, the sunset date for the noncustodial parent earned income credit has been repealed, making the credit permanent.
Continue the discussion on LinkedIn: What changes in the New York budget bill affect you the most?
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