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Articles From Lumsden McCormick

Tax Increases and SALT Relief Come Out of New York Budget Finalization

In the early morning hours of Tuesday, April 7, 2021, New York state leaders agreed on a $212 billion budget that includes increased tax rates for both large businesses and the wealthy in New York State. Included in this plan, is a temporary tax increase and two new tax brackets that have been created through this plan. Tax filers who earn between $5 and $25 million will see a tax rate of 10.3% and tax filers that earn more than $25 million will see a new top rate of 10.9% with the new rates set to expire in 2027. The plan also includes a way to circumvent the current $10,000 State and Local Tax (SALT) deduction cap that had been created in 2017.

Tax Payers Rates
Joint filers earning $2.2 - $5 million/Individuals earning $1.1 - $5 million 9.65%
Joint or individual filers earning $5 - $25 million 10.3%
Joint or individual filers earning more than $25 million 10.9%

The COVID-19 pandemic and the state’s budget shortage complicated negotiations.

Many questions remain as to the implications of the passing of New York's new budget. Stay tuned to Lumsden McCormick, where we will share additional clarification as it is made available.

Tax Increases and SALT Relief Come Out of New York Budget Finalization

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Cory has over 20 years of experience providing tax and consulting services to commercial businesses and individuals. His expertise lies in the myriad of business development incentives offered by various federal, state, and local agencies to targeted industries such as Manufacturing, Software Development, Technology Companies and many other in order to encourage regional investment, spur job creation, and foster economic growth. The available incentives include refundable tax credits, tax abatements, grants, and forgivable loans. He has extensive knowledge of Start-Up NY, Opportunity Zones, the Excelsior Jobs Program, Qualified Emerging Technology Companies, and various local incentives such as Industrial Development Agency (IDA) benefits. Additionally, he spends his time providing services to Start-Up Companies ranging from a founder with an idea to multi-national tech companies that have raised hundreds of millions of dollars.  Cory has experience in all areas of U.S. federal and NY State taxation. He has been with Lumsden McCormick since 2001, was named partner on January 1, 2015. He is a member of the Firm’s Executive Committee and is head of the commercial services group.

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