In part of her 2022 State of the State address, Governor Kathy Hochul announced efforts to deliver tax relief for thousands of small businesses and millions of middle class New Yorkers.

“As we continue to grapple with the impacts of COVID-19, we must ensure we are investing in our state’s most valuable resource: its people,” Governor Hochul said. “Millions of New Yorkers, particularly small business owners, middle class families, and our senior communities, have been hit hard by the economic devastation of the last two years, and they need our help. We must accelerate our recovery by not only reducing the tax burden, but also finding ways to put money back into the pockets of the New Yorkers who support our economy.”

New York's unemployment rate is 6.6 percent - more than two points higher than the national rate. Small businesses are also still reporting negative effects from the pandemic. 

To accelerate the economic recovery, Governor Hochul plans to:

• Provide $100 million of relief for 195,000 small businesses: To do so, the Governor will widen eligibility and increase a tax return adjustment that reduces a small business’s gross income. 
• Accelerate $1.2 billion in middle class tax cuts for 6 million New Yorkers: In 2018, New York began phasing in a middle-class tax cut, and the cut is not currently scheduled to be fully implemented until 2025. Applying the full effective cut to the 2023 tax year will accelerate two years of tax cuts, providing relief for 6.1 million New Yorkers.
• Deliver a $1 billion property tax rebate for more than 2 million New Yorkers: The property tax rebate program will return tax dollars to middle- and low-income households. More than 2 million New Yorkers will be eligible for the rebate, with low-income households and seniors receiving higher benefits. Under the Governor’s plan, eligible homeowners will receive their benefit in the Fall of 2022, to the tune of $1 billion.
• Increase existing tax credits and create a new credit to support food production: Farm labor is among the fastest-growing costs of agricultural production in New York. Governor Hochul will increase an existing workforce tax credit and create a new one, while also expanding an investment tax credit for equipment to complement the workforce and address shortages. This includes:
• Doubling the farm workforce retention tax credit: Farm owners and employers are currently eligible to receive a refundable tax credit of a fixed dollar amount per eligible farm employee through 2024. To help farms retain their workers, the State will double the yearly fixed dollar amount per eligible employee and extend the program to 2025.
• Creating a new overtime tax credit: The State will create a permanent refundable tax credit on overtime hours for any size farm in New York State, to offset increasing costs to farmers.
• Increase the investment tax credit: The investment tax credit has been a powerful tool in the past to stimulate investments in new technology and equipment. New York will increase the existing investment tax credit for all State farms, allowing farmers to purchase new equipment that could further automate their farms in response to the declining agriculture workforce.