Relates to the business income rate and expanding the small business subtraction modification

This bill (S 9299) lowers tax rates for small businesses in New York State. It reduces the business income tax rate from 6.5% to 4% for businesses with annual income under $290,000, effective for taxable years beginning on or after January 1, 2027. For businesses with income between $290,000 and $390,000, it adjusts the calculation method to lower the tax burden compared to current rates. The bill directly affects small businesses meeting these income thresholds by reducing their state tax liability under the modified tax structure.