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A 829

Excludes unemployment compensation from state income tax

2025 Regular Session Introduced by Brian Cunningham and 5 co-sponsors

Excludes unemployment compensation from state income tax, boosting after-tax income for recipients while reducing state revenue; final definitions and timing TBD.

REFERRED TO WAYS AND MEANS
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Bill Summary · A 829

Summary of Assembly Bill A 829 — Excludes Unemployment Compensation from State Income Tax

Overview

  • Bill number and title: A 829, Excludes unemployment compensation from state income tax
  • Status: Referred to Ways and Means
  • Introduced: January 8, 2025
  • Purpose: To modify the state income tax to exclude unemployment compensation from taxable income, effectively making unemployment benefits non-taxable at the state level.

Key Provisions (as introduced)

  • The bill would amend the state income tax code to exclude unemployment compensation from the portion of income subject to state taxation.
  • By exempting unemployment benefits, recipients would not owe state income tax on unemployment compensation payments received under unemployment programs.
  • The text available does not specify an effective date, transitional rules, or the scope of “unemployment compensation” (e.g., whether it covers all forms of unemployment benefits or only certain programs). The actual language in the bill would clarify definitions and the applicable tax year.

Who Would Be Affected

  • Individuals receiving unemployment compensation under state or federal unemployment programs who would no longer have those benefits counted as taxable income for state tax purposes.
  • Households with unemployment benefits may experience an uplift in after-tax income for the years the exemption applies, depending on the bill’s final language and effective date.
  • The New York State Department of Taxation and Finance (or equivalent tax authority) would implement administrative changes to reflect the exemption.

Procedural and Timeline Details

  • Committee referral: Ways and Means (intended to advance tax-related provisions).
  • Next steps: If Ways and Means approves the bill (and if deemed favorable, it would move to the broader Assembly floor for a vote, and potentially to the Senate if similar actions occur there). The exact timetable depends on legislative action and any amendments.

Sponsorship

  • Primary sponsor: Phara Souffrant Forrest
  • Cosponsors: Jo Anne Simon, Brian Cunningham, Jessica Gonzalez-Rojas, Zohran Mamdani, Karines Reyes

Related Legislation

  • A 5728 (prior-session) is noted as related, indicating a precedent or similar approach in previous sessions.

Potential Implications

  • Fiscal: Excluding unemployment compensation from state taxation would reduce state revenue by the amount of unemployment benefits that would have been taxed, impacting the state budget and potentially necessitating offsets or adjustments.
  • Administrative: Tax agencies would need to implement coding changes to ensure unemployment benefits are not taxed at the state level.
  • Economic: The change could marginally increase after-tax income for unemployment recipients, providing greater net resources to impacted households.

Notes

  • The summary reflects information available in the bill’s introductory materials. The full text would specify definitions, effective dates, applicability, and any transitional provisions.

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

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