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Corporate tax reform draft regulations

Corporate tax reform draft regulations

Since the enactment of corporate tax reform, the Tax Department has been publishing proposed updates to the Article 9-A Business Corporation Franchise Tax Regulations.  In 2022, the Department intends to begin the State Administrative Procedure Act (SAPA) process to formally propose and adopt these regulations.    

Prior to the SAPA process, there will be three final drafts issued this year reflecting updates and comments received throughout this process:




Parts 1 – 3 Definitions

Final update posted April 2022

Revisions to investment capital definition and new example 16 in Subpart 3-6 posted August 2022

Accounting periods
Income and capital
Capital losses
Prior net operating loss conversion subtraction
Net operating losses

Part 4

Apportionment, including rules for digital products/services and services and other business receipts

Final update posted July 2022

Parts 5 – 10 Tax credits Final update posted April 2022
Payment of tax
MTA Surcharge
Special entities

 Parts 1 through 3

Text of Draft Rule related to Parts 1 through 3

Capital Loss Examples

Unabsorbed Net Operating Loss Examples

Prior Net Operating Loss Examples

Net Operating Loss Examples

Please provide comments on investment capital revisions by August 26, 2022.

Part 4

Text of Draft Rule related to Part 4

Please provide comments by August 26, 2022.

Parts 5 through 10

Text of Draft Rule related to Parts 5 through 10

Please provide comments by June 30, 2022.

Insurance tax draft regulations

Changes to the insurance tax regulations are needed for rules covering tax credits and combined reporting. 

The tax credit rules currently contained in Part 32 are minimal and apply to expired tax credits.  As such, the Department proposes to repeal those credit rules, similar to the approach taken in the Article 9-A Part 5 regulations. 

The combined reporting rules for insurance corporations contained in existing Part 33 are minimal and direct insurance companies to use the Article 9-A combination rules contained in Subpart 6-2.  The combined reporting statutory changes in corporate tax reform only applied to Article 9-A and were not extended to Article 33.  Therefore, revisions to Part 33 are needed to provide guidance specifically applicable to combined filing for insurance corporations.

Text of Draft Rule related to Parts 32 and 33

Please provide comments by August 26, 2022.


We strongly encourage timely feedback on these final drafts since we anticipate beginning the SAPA process this fall.  Submit your comments to  Kathleen D. Chase, Office of Counsel, Department of Taxation and Finance, W.A. Harriman Campus, Building 9, Room 200, Albany, NY 12227 or

As a reminder, these draft regulations are not yet final and should not be relied upon. 

For more information see:

Corporate Tax Reform 2015