S 3340: Relates to treatment of gains from qualified opportunity zones in calculating taxable income; removes exclusion of gains on property in qualified opportunity zones in calculation of income.

  
  STATE OF NEW YORK ________________________________________________________________________ 3340 2025-2026 Regular Sessions  IN SENATE January 27, 2025 ___________ Introduced by Sens. GIANARIS, HOYLMAN-SIGAL, KRUEGER, SALAZAR -- read twice and ordered printed, and when printed to be committed to the Committee on Budget and Revenue AN ACT to amend the tax law and the administrative code of the city of New York, in relation to treatment of gains from qualified opportunity zones in calculating taxable income The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Paragraph (b) of subdivision 9 of section 208 of the tax 2 law is amended by adding a new subparagraph 28 to read as follows: 3 (28) the amount of gain excluded from federal gross income for the 4 taxable year by subparagraph (C) of paragraph (1) of subsection (a) of 5 section 1400Z-2 of the internal revenue code. 6 § 2. Subdivision 9 of section 208 of the tax law is amended by adding 7 a new paragraph (u) to read as follows: 8 (u) For tax years beginning on or after January first, two thousand 9 twenty-six, upon the sale or exchange of property with respect to which 10 the taxpayer has made the election under subparagraph (C) of paragraph 11 (1) of subsection (a) of section 1400Z-2 of the internal revenue code, 12 the basis of such property under this article shall be determined as if 13 the taxpayer had not made such election. 14 § 3. Subsection (b) of section 612 of the tax law is amended by adding 15 a new paragraph 44 to read as follows: 16 (44) the amount of gain excluded from federal gross income for the 17 taxable year by subparagraph (C) of paragraph (1) of subsection (a) of 18 section 1400Z-2 of the internal revenue code. 19 § 4. Section 612 of the tax law is amended by adding a new subsection 20 (y) to read as follows: 21 (y) Qualified opportunity zones. For tax years beginning on or after 22 January first, two thousand twenty-six, upon the sale or exchange of 23 property with respect to which the taxpayer has made the election under EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD02005-01-5 
 S. 3340 2 1 subparagraph (C) of paragraph (1) of subsection (a) of section 1400Z-2 2 of the internal revenue code, the basis of such property under this 3 article shall be determined as if the taxpayer had not made such 4 election. 5 § 5. Paragraph 2 of subdivision (b) of section 1503 of the tax law is 6 amended by adding a new subparagraph (AA) to read as follows: 7 (AA) the amount of gain excluded from federal gross income for the 8 taxable year by subparagraph (C) of paragraph (1) of subsection (a) of 9 section 1400Z-2 of the internal revenue code. 10 § 6. Section 1503 of the tax law is amended by adding a new subdivi- 11 sion (d) to read as follows: 12 (d) For tax years beginning on or after January first, two thousand 13 twenty-six, upon the sale or exchange of property with respect to which 14 the taxpayer has made the election under subparagraph (C) of paragraph 15 (1) of subsection (a) of section 1400Z-2 of the internal revenue code, 16 the basis of such property under this article shall be determined as if 17 the taxpayer had not made such election. 18 § 7. Paragraph (b) of subdivision 8 of section 11-602 of the adminis- 19 trative code of the city of New York is amended by adding a new subpara- 20 graph 23 to read as follows: 21 (23) the amount of gain excluded from federal gross income for the 22 taxable year by subparagraph (C) of paragraph (1) of subsection (a) of 23 section 1400Z-2 of the internal revenue code. 24 § 8. Section 11-602 of the administrative code of the city of New York 25 is amended by adding a new subdivision 11 to read as follows: 26 11. For tax years beginning on or after January first, two thousand 27 twenty-six, upon the sale or exchange of property with respect to which 28 the taxpayer has made the election under subparagraph (C) of paragraph 29 (1) of subsection (a) of section 1400Z-2 of the internal revenue code, 30 the basis of such property under this article shall be determined as if 31 the taxpayer had not made such election. 32 § 9. Paragraph (b) of subdivision 8 of section 11-652 of the adminis- 33 trative code of the city of New York is amended by adding a new subpara- 34 graph 24 to read as follows: 35 (24) the amount of gain excluded from federal gross income for the 36 taxable year by subparagraph (C) of paragraph (1) of subsection (a) of 37 section 1400Z-2 of the internal revenue code. 38 § 10. Subdivision 8 of section 11-652 of the administrative code of 39 the city of New York is amended by adding a new paragraph (u) to read as 40 follows: 41 (u) For tax years beginning on or after January first, two thousand 42 twenty-six, upon the sale or exchange of property with respect to which 43 the taxpayer has made the election under subparagraph (C) of paragraph 44 (1) of subsection (a) of section 1400Z-2 of the internal revenue code, 45 the basis of such property under this article shall be determined as if 46 the taxpayer had not made such election. 47 § 11. Subdivision (b) of section 11-1712 of the administrative code of 48 the city of New York is amended by adding a new paragraph 40 to read as 49 follows: 50 (40) the amount of gain excluded from federal gross income for the 51 taxable year by subparagraph (C) of paragraph (1) of subsection (a) of 52 section 1400Z-2 of the internal revenue code. 53 § 12. Section 11-1712 of the administrative code of the city of New 54 York is amended by adding a new subdivision (w) to read as follows: 55 (w) For tax years beginning on or after January first, two thousand 56 twenty-six, upon the sale or exchange of property with respect to which 
 S. 3340 3 1 the taxpayer has made the election under subparagraph (C) of paragraph 2 (1) of subsection (a) of section 1400Z-2 of the internal revenue code, 3 the basis of such property under this article shall be determined as if 4 the taxpayer had not made such election. 5 § 13. This act shall take effect immediately and shall apply to taxa- 6 ble years beginning on or after January 1, 2026.