Deriving receipts thresholds
The Commissioner of Taxation and Finance annually reviews the thresholds at which a corporation is deemed to be deriving receipts from activity in New York State and in the Metropolitan Commuter Transportation District (MCTD) for purposes of imposing the Article 9-A franchise tax and MTA surcharge. The Commissioner adjusts the thresholds if the Consumer Price Index has changed by 10% or more since January 1, 2015, or since the date that the thresholds were last adjusted by the Commissioner.
The thresholds at which a corporation and a unitary group are deemed to be deriving receipts from activity in New York State and in the MCTD for purposes of imposing the Article 9-A franchise tax and MTA surcharge are:
- $1,000,000 for tax years beginning on or after January 1, 2015, and before January 1, 2022; and
- $1,138,000 for tax years beginning on or after January 1, 2022, and before January 1, 2024.
Additionally, when determining whether the deriving receipts thresholds are met for a unitary group, only total the receipts from corporations conducting a unitary business that meet the ownership requirements under Tax Law § 210-C (except for corporations that may not be included in a combined report due to the exclusions in Tax Law § 210-C.2(c)):
- with at least $10,000 in New York receipts, for the franchise tax, and at least $10,000 in MCTD receipts, for the MTA surcharge, for tax years beginning on or after January 1, 2015, and before January 1, 2022.
- with at least $11,000 in New York receipts, for the franchise tax, and at least $11,000 in MCTD receipts, for the MTA surcharge, for tax years beginning on or after January 1, 2022, and before January 1, 2024.
For more information, see:
- TSB-M-21(3)C, 2022 Deriving Receipts Thresholds
- TSB-M-22(2)C, 2023 MTA Surcharge Rate and Deriving Receipts Thresholds
