Corporate Franchise Tax Expiration
The elevated CFT rate raises about $1.2 billion in annual revenue, according to FPI analysis. This level appears relatively consistent across years. As the expiration of higher CFT rates affects the final quarter of fiscal year 2027 and takes full effect for fiscal year 2028, the State would lose about $0.3 billion in fiscal year 2027, and $1.2 billion in annual revenue beginning in fiscal year 2028.
Fig 2. CFT revenue raised by surcharge and potential losses from expiration
Table 3. CFT revenue raised by surcharge and potential losses from expiration
Personal Income Tax & Corporate Franchise Tax Expirations Combined
Should both the fiscal year 2022 PIT and CFT rates expire, New York State would lose about $2.4 billion in fiscal year 2028, which is partially affected by expiring PIT rates and about $6.4 billion in annual revenue in fiscal year 2029 and thereafter — about 5 percent of state funds revenue.
Figure 3. Total (PIT+CFT) surcharge revenue and potential losses as part of state operating funds revenue
Table 4. Total (PIT+CFT) potential losses as part of state operating funds revenue