Mamdani Pushes to Shrink NY Hedge-Fund, Private-Equity Tax Break

New York City Mayor Zohran Mamdani is delaying the city’s $127 billion budget as he pressures the state to limit a tax credit used by hedge funds, private equity firms and other businesses.

Mamdani and City Council Speaker Julie Menin called on Governor Kathy Hochul and lawmakers in Albany to limit the city’s pass-through entity tax credit on Tuesday. The break, known as PTET, allows business owners to bypass federal limits on state and local tax deductions.