Welcome to the Building Trades Employers Association (BTEA) New York Legislative Report for the month of May. 


After weeks of intense negotiating, state lawmakers and Governor Kathy Hochul finalized the $229 billion New York State budget, BTEA has been closely monitoring the progress of the budget and the fate of items and proposals that deeply impact New York’s building contractors.

There are disappointments. For example, the material price escalation clause that the State Senate had approved – and would have provided relief to contractors impacted by material price increases – did not survive the final budget. While the budget has been finalized, talks are ongoing and future adjustments to the budget are still possible. For now, here’s a summary of what’s in and what’s out of the budget as of May 10, 2023.


  • Authorization of the New York State Urban Development Corporation to administer the Empire State Economic Development Fund has been extended. (Part JJ)
  • The Dormitory Authority of the State of New York's ability to enter into design and construction management agreements has also been extended. (Part LL)
  • The minimum wage is going up! The $15/hour minimum for New York City, Long Island and Westchester County will increase to $16/hour by 2024 and an additional 50 cents each subsequent year until it reaches $17/hour in 2026.


  • 421-a Extension (Part R/Executive Budget)
  • Multiple dwelling tax credits (Parts N&O/Executive Budget)
  • Community Hiring (Part T/Executive Budget)
  • Reciprocity between New York State and New York City MWBE certification and increase the discretionary -procurement threshold for MWBEs for New York City and New York State (Part HH/Executive Budget)
  • Alternative project delivery methods for NYC (Part II/Executive Budget)
  • Office conversions to affordable housing - a proposal to allow buildings constructed before 1990 to convert from commercial to residential use with eligibility for tax abatement.
  • J-51 Replacement- a proposal to renew and reform the property tax exemption and abatement for renovating residential apartment buildings.

 BTEA will continue to communicate with legislators and state officials on budget matters that affect our members and will keep you informed of any development in the budget process.


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