Tax Benefit Used by Law Firms Latest Target in NY Budget Talks

A tax benefit used by private equity firms, hedge funds, and lawyers is the latest target for Democrats looking to solve New York City’s budget woes without alienating major voting blocs as they prepare for their primary election in June.

New York City officials and major unions are calling on state lawmakers to raise $700 million annually by limiting the city’s pass-through entity tax credit. The push has intensified in recent weeks as state lawmakers look to strike a deal with Gov. Kathy Hochul (D) on new funding streams to fill the city’s $5.4 billion two-year budget gap.

The campaign ...