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Bill

A 11561

Enacts into law necessary legislation including extensions and technical corrections

2025 Regular Session

Extends and clarifies key programs and credits, including a five-year extension for reducing temporary staffing in residential healthcare facilities ( Part A) and extended brownfie

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Bill Summary · A 11561

Summary of Bill A11561 (2025-2026) – New York

This bill is a package of technical corrections and extensions across multiple policy areas. It consists of six Parts (A–F), each extending or clarifying existing programs, credits, or tax provisions, with an emphasis on administrative corrections and small-to-moderate policy updates. Effective dates vary by Part.

Main purpose and intent

  • Provide extensions and technical corrections to several existing programs and tax provisions.
  • Extend demonstration projects and groups intended to reduce reliance on temporary staffing in residential healthcare facilities.
  • Extend and clarify brownfield redevelopment and remediation tax credits for a specific site.
  • Make technical corrections to extend the term and authority of the independent monitor for the Orange County Industrial Development Agency (IDA) and adjust related tax-exemption applicability.
  • Postpone expiration dates for certain New York City taxes and rates to allow continued collection.
  • Make adjustments to city and state tax administration and rate structures, including sales taxes on certain services, local income taxes, and related withholding/collection rules.
  • Address temporary transfers of racing support payments and related funding mechanisms.

Key provisions by Part

Part A – Demonstration project in residential healthcare facilities (extension and adjustments)

  • Extends the existing four-year demonstration project and workgroup to reduce the use of temporary staffing agencies in residential healthcare facilities from a current end date to December 31, 2027 (i.e., a fifth year).
  • Continuously links program performance to reductions in temporary staffing usage measured via CMS PBJ data.
  • Establishes phased revenue-based reductions (remittance reductions) for facilities:
    • 50% reduction if a facility with ≤50% temporary staffing reduces contracted agency use by ≥30%.
    • 25% reduction if the facility reduces agency use by 20–<30%.
  • Defines measurement methodology:
    • Uses quarterly comparisons (2023 Q4 vs 2023 Q4, 2026 Q2 vs 2027 Q2) and, for other years, year-average comparisons of the four quarters.
  • Revenue exclusions and adjustments:
    • For first year, “revenue” excludes all but Medicaid operating revenue if the facility meets a 10% or less threshold of resident-facing staffing via temporary agencies.
    • Similar progressively stricter thresholds apply in subsequent years (9% in year two, 8% in years three to five).
  • Facilities must provide CPA-verified PBJ data to qualify for payment reductions.

Part B – Brownfield redevelopment credits (site at 1800 Park Avenue, East Harlem)

  • Extends eligibility for Brownfield Redevelopment Tax Credits (section 21) and the on-site groundwater remediation credit (section 21) for the specific site.
  • Allows both site preparation and on-site remediation credits for eligible costs incurred prior to placement in service and for up to five years (60 months) after first placement in service, and up to ten years for the tangible property credit, with a 2031 tax-year cap.
  • Expands eligibility for Tax Credits under section 22 (remediated brownfields) to a ten-consecutive-tax-year period beginning with the tax year of property placement in service, capped to begin no later than 2031.
  • Applies to a developer who has acquired the site from another party who held a completion certificate, provided the acquisition occurs by 2031.

Part C – Independent monitor for Orange County IDA (technical corrections)

  • Modifies provisions related to the term/authority of the independent monitor for the Orange County Industrial Development Agency.
  • Aligns expiration and repeal timing with related not-for-profit and population-based tax-exemption rules as proposed in S9005-C/A10005-C.
  • Effective immediately.

Part D – City taxes: postponements and extensions

  • Updates multiple tax provisions for New York City:
    • Paragraphs expanding or continuing taxes on certain services (e.g., credit services) with a sunset around 2029.
    • Adjusts personal income tax rates for NYC residents, including brackets for married filing jointly, head of household, and single filers for post-2029 years.
    • Revisions to 11-604, 11-1701, 11-1704.1, 11-2002, 11-2040, and 11-3206 related cities taxes, with a sunset of 2029 for the new provisions.
    • Revisions to the city’s payroll-related and business tax structures, with sunset provisions.

Part E – Administrative code corrections for NYC tax administration

  • Updates Section 11-3206 (administrative code) to allow a streamlined review process for tax assessments and to align filing windows for market value reviews of covered properties (e.g., residential cooperatives) with nearby calendar and surcharge timelines.
  • Ensures consistency with Part D’s changes and the 2026–2029 sunset framework.

Part F – Racing, pari-mutuel wagering and education funding

  • Adjusts the distribution of gaming facility tax receipts within NYC to maintain funding for racing support payments and to allocate remaining tax revenue to the Metropolitan Transportation Authority (MTA) and education aid hold harmless funds.
  • Establishes a phased, semi-automatic distribution model with hold-harmless considerations, proportional deposits to the MTA gaming revenue fund, and a mechanism to handle excess revenues.
  • The section includes sunset provisions and a one-year expiration for the new arrangements.

Who would be affected

  • Residential healthcare facilities and their patients/residents (Part A): impact on funding reductions tied to staffing mixes and PBJ data reporting.
  • Developers and site owners of brownfield sites (Part B): potential eligibility enhancements and extended credit periods for the 1800 Park Avenue site and similar sites.
  • Orange County IDA and related local government entities (Part C): clarified authority/monitoring arrangements.
  • NYC-based taxpayers and service providers (Part D–E): extended or modified tax rates, service taxes, and administration; changes to local tax revenue streams with sunset in 2029.
  • Racing and gaming sectors (Part F): mechanisms for tax revenue allocation to racing support payments, MTA, and education aids.

Procedural/timeline aspects

  • Part A: Extends the demonstration project through 2027, with quarterly performance measurement and staged remittance reductions.
  • Part B: Immediate effect upon enactment; credits applicable to costs and timeframes ending no later than 2031.
  • Part C: Immediate effect for amendments; alignment with related laws and expiration rules.
  • Part D–E: Tax provisions sunset in 2029, with phased, condition-based continuations; certain local tax rules require timely certification of enacted local laws and copies to the state tax department.
  • Part F: Effective immediately, with a one-year expiration after enactment; includes repeal-on-expiration.

Effective date

  • Overall act: effective immediately for Parts C–F; Part A and B specify their own effective dates as described above (extensions through 2027 for Part A; immediate for Part B; others vary per section).

This summary presents the bill’s substantive changes and potential impact in accessible terms. If you’d like, I can provide a section-by-section comparison against current law or a brief fiscal impact note.

Compiled from official sources — confirm details with the bill’s official record.

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