S 8921 New York Senate · 2025 Regular Session

Relates to modifications increasing federal adjusted gross income

This New York state bill modifies tax rules by requiring residents to include certain gains excluded under federal law in their state adjusted gross income. Specifically, it adds gains excluded under Section 1202 of the Internal Revenue Code (for qualified small business stock sales) back into taxable income for New York state tax purposes. It directly affects New York residents who sell eligible small business stock and previously excluded those gains from state taxes. The change takes immediate effect upon enactment, altering how these gains are treated for state tax calculations.

Issues: ✓ Budget & Taxes

Bill status in committee 1 of 4 stages cleared

Introduction

Jan 2026

Committee Review

Floor Vote

Governor

Introduced Jan 15, 2026 Last action Feb 10, 2026

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What changed between versions

S8921 → S8921A · 5 edits

MODERATE

The bill was amended to add committee discharge language and update the bill number to S8921A. The substantive content was significantly expanded from a single section to four sections, adding new tax law modifications in addition to the original provision.

Scope change

The bill's scope expanded from one tax modification to three separate tax law amendments covering different sections of the tax code.

TECHNICAL

Added committee discharge language indicating the bill was reviewed and amended by the Budget and Revenue Committee before being sent back to the committee.

SCOPE

Added a new Section 1 that modifies paragraph (b) of subdivision 9 of section 208 of the tax law, which was not present in the original version.

REQUIREMENT

Modified Section 1 to add a new subparagraph 28 that excludes certain gains from federal adjusted gross income calculations for taxable years beginning on or after January 1, 2025.

Added Section 3 that modifies paragraph 2 of subdivision (b) of section 1503 of the tax law to include the same gain exclusion provision for taxable years beginning on or after January 1, 2025.

TIMELINE

Updated the effective date language in Section 4 to explicitly state the act applies to taxable years beginning on or after January 1, 2025.

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Key actions

Committee

Amendments

Feb 10, 2026

Upper · Passed

PRINT NUMBER 8921A

upper

Feb 10, 2026

Upper · Passed

AMEND (T) AND RECOMMIT TO BUDGET AND REVENUE

upper

Jan 15, 2026

Committee

REFERRED TO BUDGET AND REVENUE

upper

1 primary · 1 co-sponsor