Relates to creating a tax deduction for certain capital gains

This bill creates a 100% tax deduction for capital gains earned from selling stock or ownership interests in New York corporations or LLCs to employee-owned enterprises (EOEs) located in New York. To qualify, the EOEs must have their commercial base in New York, and if structured as an employee stock ownership plan (ESOP), they must meet federal ESOP requirements. The deduction applies directly to individuals or entities selling business ownership to these qualifying New York-based employee-owned businesses. This policy change specifically modifies tax law to incentivize sales of New York business interests to employee-owned entities meeting defined criteria.