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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:

Part                

Topics                                                                                                                                                              

Status

Parts 1 – 3 Definitions Final update posted April 2022
Nexus
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
Reports
Payment of tax
Assessments
MTA Surcharge
Special entities

We strongly encourage timely feedback on these final drafts since we anticipate entering 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 email us. 

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

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 by June 30, 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.

For more information see:

Corporate Tax Reform 2015

Updated: