Friday, June 15, the New York City Council passed a bill to increase the Unincorporated Business Tax credit! This is a victory for freelancers and a first step toward eventually exempting them from the UBT. The progressively-structured credit will give the greatest relief to middle class taxpayers. Many freelancers will find their 2007 UBT liability significantly reduced as a result. For example, in 2006, a freelancer earning $75,000 as a sole proprietor owed $765 in UBT. The new legislation, along with an additional $5,000 deduction that was passed in Albany today, will reduce this freelancer’s UBT bill to $261, a savings of $504, or 66%. For more on the Unincorporated Business Tax, check out the new UBT Watch.