Relates to business income base and certain small business taxpayers

This bill adjusts New York State tax rates for small business taxpayers by lowering the business income tax percentage for qualifying small businesses over time. For taxable years beginning in 2027, businesses with a base income under $400,000 pay 4% instead of the previous rate; this drops to 2.5% for 2028. It directly affects sole proprietors and entities like LLCs, partnerships, or S corporations with net business income under $550,000 (for sole proprietors) or $1.5 million in gross business income (for other entities). The bill modifies tax calculations for income above $400,000 up to $500,000, with specific formulas for higher brackets. These changes apply to New York State tax returns for 2027 and later.