The Business Council Applauds Signing of the CPA Ownership Legislation
New Law Will Expand Private Sector Business Activity and Generate Millions in Taxable Income
ALBANY – The Business Council of New York State Inc., on Tuesday, applauded Governor Hochul’s approval of legislation allowing public accounting firms to organize in New York State with a “simple majority” of ownership by CPAs. The bill was championed by New York State Senator Toby Ann Stavisky (Whitestone) and New York State Assembly Majority Leader Crystal D. Peoples-Stokes (Buffalo). Governor Hochul, who had included this measure in her first two Executive Budget proposals, signed the bill into law on December 8, 2023.
The new law puts New York’s CPA industry on a level playing field with forty-eight other states and will boost economic growth by promoting further expansion of the state’s CPA sector. Based on recent projections, New York would see up to $66 million in new business activity and $6.5 million in state-taxable income due to this reform legislation.
“We appreciate the leadership from Governor Hochul, Senator Stavisky, and Majority Leader People Stokes in pushing this legislation over the finish line, after a nearly ten-year advocacy effort,’’ said Ken Pokalsky, Vice President, The Business Council of New York State Inc. “This law results from extensive advocacy by the accounting sector and other business interests, including the Business Council, which focused on policy-makers who understand the need to promote economic growth and assure that New York businesses have the legal framework to compete effectively in national markets.”
New York’s outdated restrictions placed in-state firms at a disadvantage when recruiting and retaining top talent, such as IT experts, data analysts, and others who complement a firm’s accountancy practice. This amendment will put New York firms on a level playing field with neighboring and competing states.
“Thank you, Governor Hochul for signing the non-CPA Ownership bill. It has taken a decade of advocacy and good old-fashioned hard work by The Business Council of NYS, the NYS Society of CPA’s and many more to allow NY CPA firms the opportunity to become more competitive and increase their bottom lines. As the work becomes even more complex, providing upward mobility opportunities for valued employees in IT, policy, data analysis, and other professions are crucial as they did not exist before. This will help strengthen our local and state economies,” stated Assembly Majority Leader Crystal Peoples-Stokes.
“Some bills take longer than others to pass, but I was delighted to work with the Governor and the Assembly to enact this commonsense legislation. It is important that we keep CPA firms in New York State and this law will benefit our residents by retaining and attracting qualified CPA’s to work here,” said Senator Toby Ann Stavisky.
The Business Council’s 3,300 member companies include the “big four” accounting firms, and numerous other small and mid-sized firms that will benefit from this reform.