Introduction
Introduction
The thirty-second annual New York State Tax Expenditure Report has been prepared by the Department of Taxation and Finance and the Division of the Budget and is submitted in accordance with the provisions of Executive Law, § 181.[1] The Executive Law defines tax expenditures as features of the Tax Law that by exemption, exclusion, deduction, allowance, credit, preferential tax rate, deferral, or other statutory device, reduce the amount of taxpayers’ liabilities to the State by providing either economic incentives or tax relief to particular classes of persons or entities, to achieve a public purpose.
As required by statute, the report includes:
- an enumeration of the tax expenditures associated with the:
- personal income tax (Tax Law Article 22),
- corporate franchise tax (Tax Law Article 9-A),
- insurance tax (Tax Law Article 33),
- corporation and utility taxes (Tax Law Article 9),
- sales and compensating use tax (Tax Law Article 28),
- petroleum business tax (Tax Law Article 13-A),
- real estate transfer tax (Tax Law Article 31);
- the provisions of law authorizing the tax expenditures, their effective dates, and where applicable, the date that such tax expenditures expire or are reduced;
- estimates (if reliable data are available) of the costs of the tax expenditures for the current taxable or calendar year and the five preceding years;
- an analysis of tax expenditure proposals included in the Governor’s 2025–26 Executive Budget; and
- cautionary or advisory notes regarding the use of the report and data limitations.
As provided in prior years, the report also includes information that summarizes:
- tax expenditures that appear in more than one article of the tax law, for example, cross‑article tax expenditures; and
- state legislation enacted in recent years that resulted in the addition, deletion, or modification of various tax expenditure provisions.
The report also includes the following additional information:
- A glossary of terms used in this report.
1 Executive Law § 181 provides that any information relating to tax expenditures furnished by the Commissioner of Taxation and Finance be furnished in accordance with the secrecy provisions of the Tax Law.