New Jersey and Connecticut are offering tax credits to residents who successfully appeal New York’s requirement that out-of-state workers pay personal income tax to New York, even if they work remotely. This is due to the loss of hundreds of millions of dollars in tax revenue each year. The neighboring states have implemented “retaliatory” tax rules affecting New Yorkers working remotely for their companies, but these workforces are far smaller. The issue has been ongoing for decades, and a legal challenge may be necessary to overturn the rule entirely.