Summary of 2024 corporation tax and personal income tax changes

Division of Tax Appeals representation (Article 40)

Effective September 27, 2024, the list of individuals who may appear on behalf of a taxpayer in an appeal before the Division of Tax Appeals has been expanded to include any person of the taxpayer’s choosing who is at least 18 years of age.

[Chapter 366 of the Laws of 2024; Tax Law § 2014]

Electronic filing and payments mandate (Article 1)

The electronic filing and electronic payment mandates established in 2011 were extended to December 31, 2029.

Tax professionals: for more information, see Tax return preparer e-file mandate.

Businesses: for more information, see Electronic filing mandate for business taxpayers.

[Part F of Chapter 59 of the Laws of 2024; Tax Law § 29]

Additional payments for Empire State child credit (Article 22)

Resident taxpayers received an additional payment (beginning in August 2024) if they:

filed their 2023 tax return on time (including extensions), and
received a 2023 Empire State child credit of at least $100.

Taxpayers are not required to report these payments on their 2024 New York State income tax return.

For additional information, see Additional Empire State child payments.

[Part BBB of Chapter 56 of the Laws of 2024; Tax Law § 606(c-1)]

Commercial security tax credit (Articles 9, 9-A, and 22)

For tax years beginning on or after January 1, 2024, and before January 1, 2026, a new refundable credit, administered by the Division of Criminal Justice Services (DCJS), is available to businesses that:

operate a physical location in New York State;
have 50 or fewer total employees;
incur qualified retail theft prevention measure expenses that exceed $4,000 for a qualified business with 25 or fewer total employees or $6,000 for a qualified business with 26 to 50 employees for each physical New York retail location during the taxable year; and
have received a certificate of tax credit or a share of the credit listed on a certificate issued by DCJS.

DCJS determines credit eligibility and issues the tax credit certificates.

The credit is capped at $5 million annually and is equal to $3,000 for each retail location of a business entity located in New York State that meets the requirements under Executive Law § 845-e.

For more information, see Commercial security credit.

[Part E of Chapter 59 of the Laws of 2024; Tax Law §§ 49, 187-r, 210-B.60 and 606(ppp); Executive Law § 845-e]

Department action on amended returns (Articles 9, 9-A, and 22)

For tax years beginning on or after January 1, 2024, the Department of Taxation and Finance may act on an amended return filed for the same tax year in which the taxpayer filed a petition with the Division of Tax Appeals challenging a deficiency or refund denial on a previously filed return.

[Part D of Chapter 59 of the Laws of 2024; Tax Law §§ 689(c), 689(d), 1089(c), and 1089(d)]

Federal changes to the Servicemembers Civil Relief Act (Article 22)

For tax years 2023 and after, for any taxable year of the marriage, a servicemember and their spouse may each elect to file using any of the following (regardless of the date they married):

the residence or domicile of the servicemember.
the residence or domicile of the spouse.
the permanent duty station of the servicemember.

For more information, see Information for military personnel and veterans.

[Public Law 117-333 § 18]

Itemized deduction limitation for New York adjusted gross income over $10 million (Article 22)

The New York itemized deduction limitation for taxpayers whose New York adjusted gross income is over $10 million has been extended through tax year 2029.

[Part A of Chapter 59 of the Laws of 2024; Tax Law § 615(g); Administrative Code of the City of New York § 11-1715(g)]

Life and Health Insurance Company Guaranty Corporation credit (Article 33)

The Life Insurance Company Guaranty Corporation credit has been renamed the Life and Health Insurance Company Guaranty Corporation credit (LHICGC). The amended credit has been expanded to include eligible health insurers and the calculation has been simplified.

For assessments issued in 2024 and later, eligible insurers will receive a certificate of tax credit specifying the amount that can be claimed for the year.

For more information, see Life and Health Insurance Company Guaranty Corporation (LHICGC) credit.

[Part LL of Chapter 58 of the Laws of 2024; Tax Law § 1511(f); Insurance Law § 7712]

Metropolitan commuter transportation mobility tax (MCTMT) rates for self-employed individuals (Article 23)

For tax years beginning on or after January 1, 2024, the MCTMT rates on the net earnings from self-employment for individuals engaging in business within the Metropolitan Commuter Transportation District (MCTD) are:

.60% (.0060) of the net earnings attributable to the MCTD within Zone 1, if such earnings exceed $50,000 for the tax year, and
.34% (.0034) of the net earnings attributable to the MCTD within Zone 2, if such earnings exceed $50,000 for the tax year.

The $50,000 thresholds are computed on an individual basis for each zone, even if you file a joint income tax return.

For more information, see Metropolitan commuter transportation mobility tax.

[Part C of Chapter 59 of the Laws of 2024; Tax Law § 801(a)]

[Part Q of Chapter 58 of the Laws of 2023; Tax Law § 801(a)]

New York's 529 college saving program (Article 22)

The definition of a qualified withdrawal has been expanded to include withdrawals made on or after September 5, 2024, to:

pay the principal and interest on any qualified education loan, as provided for in Section 529(c)(9) of the Internal Revenue Code; or
make a rollover to a Roth Individual Retirement Account, as provided for in Section 529(c)(3)(E) of the Internal Revenue Code.

[Chapter 310 of the Laws of 2024; Education Law § 695-b]

Tax shelter provisions (Articles 9, 9-A, 22, and 33)

The reporting requirements related to the disclosure of information for transactions that present the potential for tax avoidance (a tax shelter) have been extended to July 1, 2029.

The extension also applies to penalties for nondisclosure and underpayment of taxes related to the participation in these transactions.

For more information, see Tax shelter reporting and disclosure requirements.

[Part B of Chapter 59 of the Laws of 2024; Tax Law §§ 25, 683(c)(11), 685(p), 685(p-1), 685(x)-(bb), 1083(c)(11), 1085(k), 1085(k-1), 1085(p)-(t)]

Updated: December 17, 2024