New York is on the way to becoming the first US state to tighten gun controls since the school massacre in neighbouring Connecticut last month.
Measures include a wider ban on assault weapons, limits on ammunition capacity and tougher sentences.
The bill was expected to be passed by the Democrat-led state Assembly after being approved by the Republican Senate.
The rifle used at Sandy Hook was based on a military weapon with magazines holding up to 30 rounds.
Gun control campaigners gathered outside a Walmart store in a nearby town on Tuesday demanding that the country’s largest gun retailer stop selling assault weapons.
President Obama has indicated he will ask Congress to ban them, while Vice-President Joe Biden is due to submit his post-Newtown recommendations later this week.
Meanwhile the powerful National Rifle Association has launched a target practice application for smartphones.
Approved for children as young as four, it claims to strike the right balance between gaming and education.