NYC Council Mulls Business Tax Credit Cut for Millionaires

As New York City considers scaling back a key tax credit for high-income taxpayers, details matter. Hodgson Russ Partner Tim Noonan was quoted in Tax Notes on the New York City Council's proposal to reduce the unincorporated business tax (UBT) credit for taxpayers with city taxable income of $1.25 million or more.

In the article, "NYC Council Mulls Business Tax Credit Cut for Millionaires," Tim emphasized that the proposal does not address a longstanding issue affecting many business owners and professionals who are subject to both the UBT and New York City personal income tax, creating a double-tax burden on the same income. He explained that the UBT credit was designed to partially offset that overlap, and that reducing the credit would increase the tax burden on higher-income taxpayers. Tim also noted that proposals targeting top earners can create additional incentives for those taxpayers to consider relocating outside New York City. His perspective provided important context on the broader tax policy implications of the proposal and its potential impact on business owners, partnerships, LLCs, and other taxpayers subject to the UBT.

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