Attention FAE Customers:
Please be aware that NASBA credits are awarded based on whether the events are webcast or in-person, as well as on the number of CPE credits.
Please check the event registration page to see if NASBA credits are being awarded for the programs you select.

In State of the State, NY Gov. Hochul Announces No Income Tax Increases, Proposes Tax Incentives

S.J. Steinhardt
Published Date:
Jan 11, 2023

Wikimedia Commons: Official portrait of Lieutenant Governor of New York Kathy Hochul, taken in November 2017

Delivering her second State of the State address, and her first since being elected in her own right, New York Gov. Kathy Hochul outlined her policy proposals for the coming year. She said that, given the state's rosy economic situation, she would not increase income taxes. She also announced tax incentives targeted at boosting economic activity among certain groups and industries.

Noting that the state experienced “unprecedented revenues from Wall Street and tax receipts and were flush with federal aid,” Hochul highlighted her decision to build up the state’s reserves in preparation for a potential recession without raising taxes.

But in her State of the State book, she did make other tax-related proposals designed to drive policy objectives. One she highlighted from the previous year was the $25 million Digital Game Development tax credit to grow the state’s gaming industry,

To spur the adoption of new farm equipment, such as those emit fewer emissions, the governor proposed modifying the 20 percent Investment Tax Credit (ITC) for farmers to make it refundable for a five-year period. This would allow them to make investments in qualified capital expenses. She also pledged to adopt a statewide business income tax credit for child care, and to make it easier to obtain tax credits such as the state’s earned income tax credit and the Empire State Child Credit (ESCC), which many eligible New Yorkers do not receive.

The governor’s State of the State book said that at least 4 percent of those who are eligible for the ESCC "do not receive it because they do not claim the credits despite being eligible. This leaves at least $45 million undistributed annually." She added that “outdated methods of communication between residents and the Department of Taxation and Finance (DTF) can also lead to delays, confusion, and missed refunds.” To improve the customer experience, she proposed that the DTF implement more mobile and digital options so that recipients can receive their benefits directly—and save the department the $200,000 that it spends annually in mailing paper checks.

Noting that the state’s minimum wage has remained at $15 an hour despite a 13.4 percent increase in the cost of living since October 2020, the governor proposed indexing it to the rise in the Consumer Price Index for the Northeast Region. Seventeen other states have already done so, or are planning to do so, in some form.

Click here to see more of the latest news from the NYSSCPA.