What's happening
This bill creates a tax credit for New York manufacturers of medical and personal protective equipment to encourage domestic production.
Why it matters
Strengthens supply chain resilience. By incentivizing in-state production of medical and personal protective equipment, the bill aims to reduce New York's reliance on foreign or out-of-state suppliers, making the state better prepared for emergencies like pandemics.
Targets both new and existing manufacturers. The tax credit is structured to reward both companies expanding their current output (with a 20% credit on increased production) and those starting new production lines (with a 30% credit on all qualifying output), potentially spurring investment and job creation in the manufacturing sector.
Direct economic impact for manufacturers. The ability to claim the credit as a refund (not just a reduction in tax owed) means even firms with little or no tax liability—often newer or rapidly growing companies—can benefit, improving cash flow and incentivizing rapid scaling.
Encourages production of critical health goods. By specifically defining eligible equipment as that which is primarily used for medical purposes and not generally useful otherwise, the bill ensures the incentive targets items that are most essential in health emergencies, rather than generic products.
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Who cares
Existing New York medical equipment and PPE manufacturers
They could claim a credit worth 20% of the wholesale market value of production above the bill’s specified monthly average baseline.
New medical equipment and PPE manufacturers in New York
Taxpayers that had not produced these supplies before the bill’s enactment could qualify for a credit worth 30% of the wholesale market value of supplies produced.
Manufacturing business owners paying personal income tax
They could use the credit against personal income taxes, with excess credits eligible for a refund or credit without interest.
New York State Department of Taxation and Finance
The bill would require administration of the new corporate and personal income tax credits for taxable years beginning on or after January 1, 2026.
Headline styles
Tax Credit for NY Manufacturers
Plain English, a few words. Used as the page title.
Sponsors
History
- Referred to budget and revenue
- Referred to budget and revenue
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
853
2025-2026 Regular Sessions
IN SENATE (Prefiled)
January 8, 2025
Introduced by Sens. HELMING, BORRELLO, GALLIVAN, WEBER, WEIK -- 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, in relation to establishing the New York manufacturing adequate domestic equipment credit (NY MADE)
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. The tax law is amended by adding a new section 50 to read as follows:
§ 50. New York manufacturing adequate domestic equipment credit (NY MADE). (a) General. A taxpayer subject to tax under article nine-A or twenty-two of this chapter, produces medical equipment or personal protective equipment, as defined in paragraph (a) of subdivision two of section one hundred forty-eight of the state finance law, in this state during the taxable year, shall be allowed a credit against such taxes in the amount specified in subdivision (b) of this section and pursuant to the provisions referenced in subdivision (c) of this section. For the purposes of this section, "medical equipment" shall mean machinery, apparatus, and other devices which are intended for use in the cure, mitigation, treatment or prevention of illnesses or diseases or the correction or alleviation of physical incapacity in human beings. Such equipment must be primarily and customarily used for medical purposes and not be generally useful in the absence of illness, injury, or physical incapacity.
(b) The amount of the credit per taxpayer per taxable year (or pro rata share of earned credit in the case of a partnership) for production of medical equipment or personal protective equipment, as defined in paragraph (a) of subdivision two of section one hundred forty-eight of the state finance law, shall be determined as follows:
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD01072-01-5
(1) for taxpayers who are currently producing medical equipment or personal protective equipment, as defined in paragraph (a) of subdivision two of section one hundred forty-eight of the state finance law, or were producing medical equipment or personal protective equipment, as defined in paragraph (a) of subdivision two of section one hundred forty-eight of the state finance law, in calendar year two thousand twenty-five or in January two thousand twenty-six, the credit shall be twenty percent of the wholesale market value of such supplies produced in excess of the monthly average production for the two thousand twenty-five calendar year or monthly average production equivalent if such supplies were not produced for the entire calendar year; or
(2) for taxpayers who have not produced such supplies prior to the enactment date of this section, thirty percent of the wholesale market value of such supplies produced.
(c) Cross-references. For application of the credit provided for in this section, see the following provisions of this chapter:
(1) Article 9-A: Section 210-B, subdivision 61.
(2) Article 22: Section 606, subsections (i) and (a-3).
§ 2. Section 210-B of the tax law is amended by adding a new subdivision 61 to read as follows:
61. New York manufacturing adequate domestic equipment credit (NY MADE). A taxpayer shall be allowed a credit, to be computed as provided in section fifty of this chapter, against the tax imposed by this article. In no event shall the credit allowed under this subdivision for any taxable year reduce the tax due for such year to less than the amount prescribed in paragraph (d) of subdivision one of this section. However, if the amount of credit allowed under this subdivision for any taxable year reduces the tax to such amount, any amount of credit thus not deductible in such taxable year shall be treated as an overpayment of tax to be credited or refunded in accordance with the provisions of section one thousand eighty-six of this chapter. Provided, however, the provisions of subsection (c) of section one thousand eighty-eight of this chapter notwithstanding, no interest shall be paid thereon.
§ 3. Subparagraph (B) of paragraph 1 of subsection (i) of section 606 of the tax law is amended by adding a new clause (lii) to read as follows:
(lii) New York Manufacturing Amount of credit under Adequate subdivision Domestic Equipment credit sixty-one of section two hundred (NY MADE) under subsection (a-3) ten-B
§ 4. Section 606 of the tax law is amended by adding a new subsection (a-3) to read as follows:
(a-3) New York Manufacturing Adequate Domestic Equipment credit (NY MADE). A taxpayer shall be allowed a credit, to be computed as provided in section fifty of this chapter, against the tax imposed by this article. If the amount of the credit allowed under this subsection for any taxable year shall exceed the taxpayer's tax for such year, the excess shall be treated as an overpayment of tax to be credited or refunded in accordance with the provisions of section six hundred eighty-six of this article, provided, however, that no interest shall be paid thereon.
§ 5. This act shall take effect immediately, and shall apply to taxable years beginning on or after January 1, 2026.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the tax law, in relation to establishing the New York manufacturing adequate domestic equipment credit (NY MADE)
Purpose
To provide a tax credit for producers of medical equipment and personal protective equipment manufacturing these products in New York State.
Summary of provisions
Section 1: Establishes New York manufacturing adequate domestic equip- ment credit (NY MADE), which can be applied against franchise tax on business corporations or personal income tax by businesses or individ- uals producing medical equipment or personal protective equipment (PPE) in New York State. PPE is defined according to the definition provided in paragraph (a) of subdivision two of section one hundred forty-eight of the state finance law. Medical equipment is defined as machinery, apparatus, and other devices which are intended for use in the cure, mitigation, treatment or prevention of illnesses or diseases or the correction or alleviation of physical incapacity in human beings. Such equipment must be primarily and customarily used for medical purposes and not be generally useful in the absence of illness, injury, or phys- ical incapacity. This section also establishes how the credit will be calculated.
Section 2: Amends section 210-B of the tax law to allow the NY MADE tax credit to be applied to franchise tax on business corporations.
Section 3: Amends section 606 of the tax law to add the NY MADE tax credit to schedule of credits which can be applied to personal income tax.
Section 4: Amends section 606 of the tax law to allow the NY MADE tax credit to be applied to personal income tax.
Section 5: Provides that this act shall take effect immediately and shall apply to taxable years beginning on or after January 1, 2026.
Justification
The COVID-19 pandemic showed the vulnerability of the medical supply chain as healthcare providers across our state struggled to acquire adequate amounts of medical equipment and personal protective equipment (PPE). It also highlighted the United States' reliance on other coun- tries, particularly China, for life-saving equipment like masks, gowns, test kits and respirators. These supply chain issues strained New York State healthcare providers, deprived patients of needed medical care, and exposed our healthcare workforce to additional risk.
New York state has also experienced a significant decline in manufactur- ing in recent decades. Federal Reserve Economic Data (FRED) shows that the number of New Yorkers employed in manufacturing fell from over 1,000,000 in January of 1990 to under 420,000 in December of 2023. This
decline in manufacturing has led to the loss of stable, good-paying jobs and contributed to the hollowing out of New York's middle class.
Establishing a manufacturing base for medical equipment and PPE in New York will ensure that our state is prepared for future public health crises and provide quality employment opportunities for New Yorkers. By providing a tax incentive for manufacturers producing medical equipment and PPE in New York, this bill will incentivize companies to continue producing these essential products in our state. It will also help expand New York's manufacturing base for medical equipment and PPE by offering an increased incentive for new companies which begin production in New York. These measures will keep manufacturing jobs in New York State and encourage future job creation in the sector.
Legislative history
2024: S.8853 referred to Budget and Revenue
Fiscal implications
TBD
Effective date
This act shall take effect immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.