2025–26 Executive Budget tax expenditure proposals

2025–26 Executive Budget tax expenditure proposals

This section describes the proposals contained in the 2025–26 Executive Budget that modify, add, or repeal specific tax expenditures. Each description begins with background information regarding the proposal, a summary of the proposal, reasons for recommending the change, and an estimate of the revenue implications. Table 9 provides a listing of these provisions.

1. Enact a one-time inflation refund

Background: This is a new one-time inflation refund that will be paid as an advance payment of a tax credit by the Department of Taxation and Finance in 2025.

Proposal: This proposal provides a credit to full-year residents in 2023 that filed income tax returns with income below the specified income limits.

Discussion: This proposal supports the State’s goals of addressing affordability for New York taxpayers. In particular, the credit is equal to $300 for single, head of household, and married filing separately filers with New York adjusted gross income of $150,000 or less and $500 for married filing jointly taxpayers or qualifying surviving spouses with New York adjusted gross income of $300,000 or less. To the extent the credit is included in federal adjusted gross income, it would not be subject to state or local personal income tax.

Revenue: This proposal would reduce state revenues in SFY 2025-26 by $3.08 billion.

2. Enhance the Empire State child credit for three years

Background: Resident taxpayers with children ages 0-16 may claim a refundable credit equal to the greater of $100 times the number of children or 33 percent of the taxpayer’s allowed federal child tax credit, calculated using the rules in effect for tax year 2017, which produces a $330 per qualifying child maximum state credit.

Proposal: This proposal enhances the Empire State child credit by expanding eligibility and increasing the credit amounts allowed for tax years 2025, 2026, and 2027.

Discussion: Specifically, a taxpayer would be allowed a credit of $1,000 for each qualifying child under the age of four in tax years 2025, 2026 and 2027. Additionally, a taxpayer would be allowed a credit of $330 for each qualifying child who is four years of age and not yet age seventeen in 2025, and $500 for each such child in 2026 and 2027.

The Empire State child credit is a tax credit offered to help reduce the financial burden of families with children. This proposal supports the State’s goals of addressing affordability and combating child poverty.

Revenue: This proposal would decrease state revenues by $471 million in SFY2025-26.

3. Establish the CATALIST NY Program

Background: This is a new economic development program administered by New York State Empire State Development.

Proposal: This proposal would establish the new Companies Attracting Talent to Advance Leading Innovations and Scale Technologies (CATALIST NY) incubator program to provide statewide economic support to early-stage innovation businesses.

Empire State Development will certify new hires employed by a CATALIST NY small business to be eligible for a state personal income tax exemption for wages earned over a five-year period beginning with the year of certification. The CATALIST NY program would last for 10 years, with no tax benefits provided after 2035.

Discussion: The CATALIST NY program will help to grow the innovation economy in New York State by supporting early-stage innovation businesses during a critical phase of their growth. Small businesses participating in CATALIST NY would be given a competitive advantage during crucial expansion phases by offering tax free wages to attract new hires.

To qualify for the program, the small business:

• must have completed an incubator program within the previous two years and been engaged with the incubator for at least twelve months;
• must be headquartered in New York with at least one chief officer primarily performing services in the State;
• must have fewer than 20 full-time employees when an incubator nominates the business for the program, with an agreement to create at least two additional permanent, full-time NY- based positions upon certification by Empire State Development; and
• did not exceed $2 million in gross receipts in the preceding year. 

A participating business may be allocated up to eight new net jobs for the wage exemption, with the entire program capped at 4,500 aggregate net new jobs per taxable year to be certified and allocated by Empire State Development on a first-come, first-serve basis.

Revenue: This proposal would have no effect on state revenues in SFY 2025-26.

4. Establish a tax credit for organ donation

Background: Living taxpayers making an organ donation to a New York State resident may be reimbursed for certain expenses pursuant to Public Health Law § 4371. Additionally, New York State offers a one-time subtraction modification of up to $10,000 for any unreimbursed organ donation expenses. Taxpayers cannot claim both benefits.

Proposal: This proposal would convert the subtraction into a tax credit for tax years beginning on or after January 1, 2025. The credit would allow full-year resident taxpayers a one-time, refundable tax credit for unreimbursed expenses related to the transplant including: (i) travel expenses; (ii) lodging expenses; and (iii) lost wages, not to exceed $10,000, in the tax year in which the living human organ transplantation occurs. The credit would not be available if the taxpayer was reimbursed for certain living donor expenses pursuant to Public Health Law § 4371. The existing subtraction modification would be available to taxpayers through tax year 2024.

Discussion: Replacing the subtraction modification with a tax credit will provide a more direct, beneficial incentive to encourage organ donation.

Revenue: This proposal would have no effect on state revenues in SFY 2025-26.

5. Simplify the STAR income definition

Background: The School Tax Relief (STAR) program offers property tax relief to eligible New York State homeowners, administered through either the STAR credit (via check or direct deposit issued by the Department) or STAR exemption (via a tax reduction on their school property tax bill). The exemption is only available for taxpayers that have been receiving the exemption on the same primary residence since 2015 and is not available to new homeowners.

Homeowners receiving STAR benefits may be eligible for either the Basic or Enhanced STAR. Homeowners may qualify for the basic STAR benefit if the property is their primary residence, and they have income of $500,000 or less ($250,000 or less for the STAR exemption). The income limit applies to the combined incomes of the owners and owners’ spouses who reside at the property.

Homeowners may receive an enhanced STAR benefit if all owners are at least age 65 as of December 31 of the exemption year and the combined incomes of all owners and spouses who reside at the property is $107,300 or less (as of 2025). If the property is jointly owned by only a married couple or only siblings, only one owner needs to meet the age requirement.

Income eligibility for STAR benefits is based on a federal and state income tax return filed for the tax year ending two years prior to the benefit year. If a homeowner is not required to file an income tax return, they must provide a worksheet detailing their income eligibility for the benefit year.  

Proposal: This proposal would simplify the income and age eligibility rules for STAR benefits by:

1. easing age eligibility requirements so only one of the resident owners of a property needs to be 65 or older;
2. easing income eligibility requirements so only the income of the owners who primarily reside on the property is considered;
3. allowing property owners who are not required to file income tax returns to stop filing income worksheets if they were found to be eligible based on such worksheets for three consecutive years;
4. setting July 1 as the residency date for STAR credit income eligibility purposes in order to facilitate timely annual income eligibility determinations; and
5. consolidating the eligibility determination process and protest provisions so they are consistent for all variations of the STAR program.

Discussion: Enactment of this bill will ease unnecessarily complex rules governing eligibility for the STAR exemption and STAR credit programs, making these programs easier for taxpayers to navigate and easier for the Department to administer. These actions are estimated to expand the number of homeowners with STAR eligibility, increase the value of STAR to the larger enhanced benefit, and induce more homeowners to apply for the program.

Revenue: This proposal would have no effect on state revenues in SFY 2025-26.

6. Extend and amend the Excelsior Jobs Program

Background: The Excelsior Jobs Program is administered by New York State Empire State Development and offers five tax credits focused on certain strategic industries including the:

• Excelsior jobs tax credit component;
• Excelsior investment tax credit component;
• Excelsior research and development tax credit component;
• Excelsior real property tax credit component; and
• Excelsior child care services tax credit component.

To claim credits, taxpayers must first apply to and be approved by Empire State Development. For taxable years 2025 through 2029, the cap is $200 million in credit per year. Participants have a 10-year benefit period to claim the credit. Empire State Development may award 100% of any unallocated tax credits remaining at the end of 2029. The aggregate statutory cap for all years may not be exceeded and no credits are allowed for taxable years beginning on or after January 1, 2040. Enhancements have been made to the program in 2020 to add tax credits for green projects aimed at reducing greenhouse gas emissions and supporting the use of clean energy.

The Employee Training Incentive Program (ETIP), also administered by Empire State Development, provides a refundable tax credit for certain employers that procure skills training for their employees or provide internship programs in advanced technology. The credit equals 50% of eligible training costs, up to $10,000 per employee receiving eligible training and 50% of the stipend paid to an intern, up to a credit of $3,000 per intern.

The Empire State Jobs Retention Program was created in 2011 and designed to support the retention of strategic businesses and jobs directly impacted by an event that leads to an emergency declaration by the Governor. The Program offers a jobs tax credit equal to the product of 6.85% and the gross wages paid for each impacted job, defined as a job existing at the relevant location on the day before an event occurs that leads to an emergency declaration.

Proposal: Subpart A of this proposal extends the Excelsior Jobs Program ten years from 2029 to 2039, in addition to expanding the program to create enhanced benefits for semiconductor supply chain businesses. These businesses are eligible for a benefit of up to:

• 7% for excelsior’s jobs tax credit component;
• 3% for excelsior’s investment tax credit component; or
• 7% for excelsior’s research and development tax credit component.

In addition, two new programs are created to benefit semiconductor businesses: the Semiconductor Research and Development Project Program and the Semiconductor Manufacturing Workforce Training Incentive Program. Both programs are administered by Empire State Development and are available to taxpayers under Articles 9A and 22 

The first program would provide a refundable tax credit of up to 15% of the cost of qualified investments. To participate in the program, a project must incur at least $100 million in qualified investment in New York state with the establishment and operation of a research and development facility separate and apart from new or existing semiconductor or semiconductor supply chain manufacturing facilities.

The second program would provide a refundable tax credit equal to 75% of eligible wages, training costs and wrap around services up to $25,000 per employee, up to $1 million per eligible non-semiconductor manufacturing business, and up to $5 million per eligible semiconductor manufacturing business. To be eligible, a business entity operating in New York as a semiconductor manufacturing business, or a manufacturing business must conduct eligible training or procure eligible training for its employees from an approved provider.

The proposal also repeals the Employee Training Incentive Program effective December 31, 2028.

Subpart B of the proposal enhances the Jobs Retention Tax Credit Program by broadening the credit to eliminate the strategic industries requirement and amend the credit amount based on the number of employees employed by a business entity. The credit would be equal to the amount of gross wages paid for impacted jobs multiplied by:

• 15% for business entities that employ 3-49 employees;
• 5% for business entities that employ 50 to 100 employees; or
• 75% for business entities that employ over 100 employees

An eligible business entity may only receive up to $500,000 in tax credits per emergency declaration event.

This proposal would apply to tax years beginning on or after January 1, 2025.

Discussion: New York State needs to create competitive financial incentives to attract large scale semiconductor research and development projects to New York state, and to position the state to be at the center of cutting-edge innovations in the semiconductor industry. Together, these changes would incentivize additional investment in the State while leveraging existing investments in the semiconductor industry, provide increased support for businesses in disaster-affected areas, and provide predictability for businesses interested in relocating or expanding in the State.

Revenue: This proposal would have no effect on state revenues in SFY 2025-26.

7. Extend and enhance the Empire State film and post-production tax credits

Background: Taxpayers satisfying a threshold level of film production activity in New York State may claim the Empire State film production credit. The credit is equal to 30 percent of qualified production costs incurred in the production of films and certain television shows. For tax years 2015 through 2034, Empire State film production and post-production projects are eligible for an additional credit equal to 10 percent of the wages or salaries of individuals employed by a qualified film or independent film production company for services performed in specific upstate New York counties. Credit is awarded on a first come, first served basis with applications made to the New York State Governor’s Office for Motion Picture and Television Development.

Companies that are ineligible for the film production credit may qualify for the film post-production credit. To be eligible for the post-production credit, the costs incurred at a qualified post-production facility must equal or exceed 75 percent of the total post-production costs at any post-production facility.

The annual amount of credit that can be allocated by the Governor’s Office for Motion Picture and Television Development is $700 million in 2024 through 2034, with $45 million annually dedicated to the post-production credit beginning in 2024. Both credits are effective for tax years before January 1, 2035.

Proposal: This proposal would amend the Empire State film production and the Empire State film post-production credit to:

• extend the credits for two years (through 2036);
• modify payout rules for applications submitted after January 1, 2025, to eliminate the 3-year payout rules and allow taxpayers to receive the credit in the taxable year corresponding to their allocation year;
• establish a new production plus program where companies may be eligible for a tax credit equal to five or ten percent of the qualified production costs incurred on all subsequent films or television series;
• revise eligibility criteria for the post-production credit to require qualified post-production costs at a facility equal or exceed $1 million or 75 percent of total post production costs;
• lower the eligibility criteria for visual effects or animation paid or incurred in the post-production of a qualified film from $3 million to $500,000 and from 20 percent to 10 percent of the total production costs;
• creates a 6.85% withholding requirement on all payments made to loan out companies;
• limit the qualified production costs for the film post-production credit such that the aggregate total eligible qualified production costs for writers, directors, performers, composers, and no more than two producers shall not exceed 40% of the aggregate sum of all other qualified production costs; and
• creates a new $100 million Empire State independent film production credit equal to 30% of qualified production costs, provided that the costs (excluding post-production costs) attributable to the use of tangible property or the performance of services at a qualified film production facility equal or exceed 75% of the costs within and without the state in the production of the film.

Discussion: The Empire State film production credit is among the most stable in the nation, and extending the film tax credit for an additional two years would increase this stability and help to attract productions. The enhancements to the Empire State film production and post-production credit programs helps to ensure that New York State remains competitive in attracting and retaining the film industry and creating related jobs and investments. The new production plus initiative is designed to attract recurring business and multiple productions in New York State. Further, modifying the criteria for qualified independent film production companies and the creation of the Empire State independent film production credit, allow qualified independent productions to access tax credits through an expedited process.

Revenue: This proposal would have no effect on state revenues in SFY 2025-26.

8. Amend the rehabilitation of historic properties tax credit

Background: Taxpayers may claim a tax credit for the rehabilitation of historic properties located in New York State. The amount of the credit is based on the federal credit amount.

For tax years beginning on or after January 1, 2010, the credit is 100 percent of the amount of the federal historic properties credit claimed by the taxpayer, capped at $5 million per structure. The credit is limited to projects located in distressed areas as defined in Internal Revenue Code §143(j) or located within a census tract that is at or below 100% of the State median family income in the most recent American Community Survey.

For tax years beginning on or after January 1, 2020, the credit is expanded to include a qualified rehabilitation project undertaken within a state park, state historic site, or other land owned by the state, that is under the jurisdiction of the New York State Office of Parks, Recreation and Historic Preservation.

For tax years beginning on or after January 1, 2022, small projects receive a credit amount equal to 150% of the credit for qualified rehabilitation expenses. Small projects are defined as projects where qualified rehabilitation expenditures are no greater than $2.5 million.

After December 31, 2029, the credit reverts to a 30% rate and $100,000 cap. For qualified rehabilitation projects placed in service on or after January 1, 2015, the credit is refundable.

Proposal: This proposal would allow taxpayers to transfer the rehabilitation of historic properties tax credit to other taxpayers when approved by the New York State Office of Parks, Recreation and Historic Preservation. In addition, it would remove geographic limitations for the location of affordable housing projects supported by the credit. This bill would take effect immediately and apply to taxable years beginning on or after January 1, 2026.

Discussion: The transfer provisions allow for greater credit usage independent of how the federal credit is allocated between entities. In addition, exempting affordable housing projects from the law’s census tract limitations will create more locations for housing development. Collectively, these changes would remove unnecessary barriers to investments in affordable housing projects via the rehabilitation of historic properties tax credit and would spur interest in investing in their rehabilitation.

Revenue: This proposal would have no effect on state revenues in SFY 2025-26.

9. Extend and double the low-income housing credits

Background: The New York State low-income housing tax credit is based on the existing federal program provided for in Internal Revenue Code §42. The program requires an agreement between the taxpayer and New York State Division of Housing and Community Renewal for a long-term commitment to low-income housing. The amount of the credit depends on the applicable percentage of the qualified basis of each low-income building. The credit amount allocated by New York State Division of Housing and Community Renewal is allowed as a nonrefundable credit against tax for ten tax years. Unused credits may be carried forward indefinitely. Taxpayers may transfer credit under the supervision of the Division of Housing and Community Renewal.

Proposal: This proposal would increase the annual allocation of the state low-income housing credit by $30 million for each year beginning in 2025 through 2029.

Discussion: Current law increases the annual allotment by $15 million annually from 2022 through 2025. Therefore, the currently scheduled increase to $172 million in 2025 would be raised to $187 million, and each subsequent year’s allotment would increase in aggregate by $30 million.

Revenue: This proposal would have no effect on state revenues in SFY 2025-26.

10. Make a technical change to the Newspaper and Broadcast Media Jobs Program

Background: For tax years beginning on or after January 1, 2025, and before January 1, 2028, a business entity that meets the eligibility requirements of the newspaper and broadcast media jobs program may be eligible to claim a refundable credit administered by Empire State Development. The credit is capped at $300,000 per employer.

Proposal: This proposal would change the restriction in the Economic Development Law that applies the per-employer limitation to a group of related entities.

Discussion: This proposal would allow a credit of up to $300,000 to each subsidiary or affiliate that itself meets the eligibility criteria for the credit. As currently drafted, a parent, subsidiary, and affiliate companies are all subject to one, combined $300,000 credit limitation.

Revenue: This proposal would have no effect on state revenues in SFY 2025-26.

11. Amend the Digital Gaming Media Production Credit Program

Background: A taxpayer that is a digital gaming media production entity may claim a refundable credit equal to 25 percent of qualified media production costs incurred in the Metropolitan Commuter Transportation District and 35% of costs incurred in New York State but outside of the District. The credit is administered by Empire State Development and up to $5 million of credit can be allocated a year.

Proposal: This proposal would allow for any unallocated amount of the digital gaming media production credit to be carried over and added to the aggregate amount of credits allowed in subsequent years.

Discussion: This proposal would provide for treatment of unused credits under the digital gaming media production credit identical to other credit programs administered by New York State Empire State Development.

Revenue: This proposal would have no effect on state revenues in SFY 2025-26.

12. Expand the credit for employment of persons with disabilities

Background: Employers may claim a nonrefundable credit equal to 35% of the first $6,000 of first year wages paid to employees with disabilities (a maximum of $2,100 per employee). If the first year’s wages qualify for the federal work opportunity tax credit, the New York credit will apply to second year wages. To be eligible for the credit, the disabled employee must work for the employer on a full-time basis for at least 180 days or 400 hours and must be certified by the New York State Department of Education or another designated state agency.

Proposal: This proposal would increase the credit for employment with disabilities from a maximum of $2,100 to a flat $5,000 credit for each qualified employee. The amendment would apply to taxable years beginning on or after January 1, 2025.

Discussion: This proposal would provide increased financial incentives for businesses to hire workers with disabilities and to make it easier to provide reasonable accommodations for such persons.

Revenue: This proposal would have no effect on state revenues in SFY 2025-26.

13. Extend the workers with disabilities tax credit for three years

Background: The Workers with Disabilities Tax Credit Program, administered by the New York State Department of Labor, annually provides $6 million in nonrefundable tax credits for employing individuals with developmental disabilities. The credit is equal to 15% of the qualified wages for qualified full-time employees (with a maximum credit of $5,000 per employee) and 10% of the qualified wages for qualified part-time employees (with a maximum of $2,500 per employee). Full-time employment is defined as working at least 30 hours per week, and part-time employment at least 8 hours per week, each for at least six months. The credit is available for qualified wages paid after January 1, 2015. Any unused credit may be carried forward for three years.

Proposal: This proposal would extend the workers with disabilities credit by three years, through tax year 2028.

Discussion: This proposal would maintain existing support for workers with disabilities.

Revenue: This proposal would have no effect on state revenues in SFY 2025-26.

14. Extend the New York City musical and theatrical production credit for two years

Background: Participants may claim a refundable tax credit equal to 25% of qualified production expenditures paid during the qualified New York City musical and theatrical production’s credit period. The total amount of credit is capped at $3 million per production for productions whose first performance is before January 1, 2023, and $1.5 million per production for productions whose first performance is on or after January 1, 2023. The credit is administered by New York State Empire State Development, is capped at $300 million per year, and is allocated based on the date of the first performance of the qualified musical and theatrical production.

Starting in 2023, the credit was amended to add Level 1 and Level 2 qualified New York City production facilities. The amount of the credit cannot exceed $350,000 per production in a Level 2 facility or $3,000,000 per production in a Level 1 facility.

Proposal: This proposal would extend the New York City musical and theatrical production credit by two years, through tax year 2027. In addition, the aggregate credit amount is increased by $100 million to $400 million.

Discussion: This proposal would maintain and expand existing financial incentives for musical and theatrical productions in New York City that are scheduled to expire January 1, 2026.

Revenue: This proposal would have no effect on state revenues in SFY 2025-26.

15. Extend the Empire State musical and theatrical production credit for four years

Background: Eligible production companies in upstate locations can claim a refundable credit equal to 25% of qualified tangible property used and services performed in the course of the production. The credit is also allowed for transportation expenditures, including costs for packaging, creating, and transporting equipment, sets, costumes, and cast and crew. The total amount of credit is capped at $8 million per year and is administered by New York State Empire State Development.

Proposal: This proposal would extend the musical and theatrical production credit for four years through tax year 2029.

Discussion: This proposal will maintain existing support for musical and theatrical production companies in New York State, which is scheduled to expire at the end of 2025.

Revenue: This proposal would have no effect on state revenues in SFY 2025-26.

16. Extend the hire a vet credit for three years

Background: Employers hiring a qualified veteran who is employed in New York State for at least one year and 35 hours each week may claim a nonrefundable credit in the tax year in which the qualified veteran completes one year of employment with the taxpayer.

For tax years beginning on or after January 1, 2022, the credit equals 15% of the total amount of wages paid during the veteran’s first full year of employment, or 20% for a disabled veteran. The credit is capped at $15,000 per veteran or $20,000 per disabled veteran.

For tax years beginning before January 1, 2022, the credit equals 10% of the total amount of wages paid during the veteran’s first full year of employment, or 15% for a disabled veteran. The credit is capped at $5,000 per veteran or $15,000 per disabled veteran.

Proposal: This proposal would extend the credit an additional three years, through tax years beginning before 2029. The bill would take effect immediately.

Discussion: This proposal would maintain existing financial incentives for hiring veterans that are scheduled to expire at the end of 2025. This proposal would extend this credit an additional three years to taxable years beginning before January 1, 2029, for employment commenced before January 1, 2028.

Revenue: This proposal would have no effect on state revenues in SFY 2025-26.

17. Extend the clean heating fuel credit for three years

Background: The clean heating fuel credit provides a refundable credit for bioheating fuel used for space heating or hot water production for residential purposes within New York State. Bioheating fuel purchased on or after January 1, 2017, must contain at least six percent biodiesel per gallon of bioheating fuel to qualify for the credit. The credit is equal to one cent for each percent of biodiesel per gallon of bioheating fuel purchased before January 1, 2026. It may not exceed 20 cents per gallon.

Proposal: This proposal would extend the clean heating fuel credit for three years. The credit would apply to purchases of bioheating fuel for residential purchases before January 1, 2029.

Discussion: This proposal would maintain existing support for the State’s clean energy and climate policy goals.

Revenue: This proposal would have no effect on state revenues in SFY 2025-2026.

18. Extend the alternative fuels and electric vehicle recharging property credit for three years

Background: Taxpayers investing in alternative fuels vehicle refueling property or electric vehicle recharging property located in New York State may claim a nonrefundable credit equal to the lesser of $5,000 or 50% of the cost of such property.

Proposal: This proposal would extend the alternative fuels and electric vehicle recharging property credit for three years, through tax years beginning before January 1, 2029.

Discussion: This proposal would maintain existing support for the State’s clean energy and climate policy goals.

Revenue: This proposal would have no effect on state revenues in SFY 2025-26.

19. Conservation easements exemption and land trust exemption from mansion tax

Background: New York State imposes a real estate transfer tax on conveyances of real property or interests therein when the consideration exceeds $500. Tax is computed at a rate of two dollars for each $500, or fractional part thereof, of consideration. An additional tax of 1% of the sale price (mansion tax) applies to residences where consideration is $1 million or more.

Proposal: This proposal would exempt conveyances of real property for open space, parks, or historic preservation purposes to any not-for-profit corporation operated for conservation, environmental, parks, or historic preservation purposes from mansion tax.

Discussion: This proposal would help expedite acquisition of conservation easements while still ensuring a responsible land acquisition process, as well as relieve a burden on not-for-profit land trusts acquiring land for open space purposes that would otherwise be subject to the Mansion Tax

Revenue: This proposal would have no effect on state revenues in SFY 2025-26.

20. Extend the sales tax vending machine exemption for one year

Background: Currently, candy, soft drinks, bottled water and certain fruit juice purchased from a vending machine that accepts only cash or coins are exempt from sales tax if the items is priced at $1.50 or less. If the vending machine can accept payment in some other form (such as a credit card), then the tax exemption threshold is $2.00 or less per item. These exemptions are set to expire after May 31, 2025.

Proposal: The 2025-26 Executive Budget would extend the existing sales tax exemption for certain food and drink purchased from vending machines for one year.   

Discussion: This proposal would incentivize the industry to continue to transition to cashless machines that are able to collect tax at the time of sale.

Revenue: This proposal would reduce state revenues by $8 million in SFY 2025-26.