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Corporate tax reform draft regulations

The Department of Taxation and Finance intends to amend the Article 9-A Business Corporation Franchise Tax Regulations to incorporate the changes made by the corporate tax reform legislation contained in the 2014-2015 and 2015-2016 enacted New York State Budgets. As they are developed, drafts of various regulatory amendments will be posted to this website for public comment prior to the State Administrative Procedure process to formally propose and adopt these regulations. These draft regulatory amendments are not final and should not be relied upon. Due dates for providing comments are posted to facilitate the drafting process. However, comments submitted after the due date may still be considered. Submit your comments to Kathleen D. O’Connell, Office of Counsel, Department of Taxation and Finance, W.A. Harriman Campus, Building 9, Room 200, Albany, NY 12227 or email us.

  • Corporations Subject to Tax

    These are draft amendments to the New York State Business Corporation Franchise Tax Regulations, Subpart 1-3, Corporations Subject to Tax, comprising sections 1-3.1 through 1-3.5. For tax years beginning on or after January 1, 2015, the activities that will subject a foreign corporation or members of a unitary group to tax under Article 9-A have been expanded to include issuing credit cards in New York State and deriving receipts from activity in New York State when certain designated thresholds are met.

    Text of Draft Rule
    Note:  Amended 1/22/16, 6/3/16, 2/10/17

    Please provide comments by 5/11/17.
     
  • Business Apportionment Factor  
     
    These are proposed new sections 4-2.3 (Receipts from the Sale of, License to Use, and Granting of Remote Access to Digital Products) and 4-2.15 (Receipts from Other Services and Other Business Activities) of the New York State Business Corporation Franchise Tax Regulations. These draft regulations describe how to source the receipts under the hierarchies described in Tax Law sections 210-A(4) for digital products and 210-A(10) for other services and other business activities and include numerous examples. These draft rules replace previously posted draft regulations.

    Text of Draft Rule related to Digital Products
    Note:  Amended 10/19/16

    Text of Draft Rule related to Other Services and Other Business Receipts
    Note:  Amended 10/19/16
     
    Please provide comments by 1/19/17.


    These are draft amendments to all Subparts of Part 4, except Subpart 4-6, of the New York State Business Corporation Franchise Tax Regulations. These draft amendments clarify and interpret the general rules contained in section 210-A of the Tax Law that are used to determine the business apportionment fraction.  New posting

    Text of Draft Rule
    Note:  Amended 8/31/17

    Please provide comments by 12/28/16.
     
  • Combined Reports

    These are draft amendments to the New York State Business Corporation Franchise Tax Regulations Subpart 6-2, Combined Reports, comprising sections 6-2.1 through 6-2.7. These draft regulations describe the requirements for filing a combined report, including detailed descriptions of the capital stock and unitary business requirements. The draft regulations also describe the requirements for the commonly owned group election.

    Text of Draft Rule

    Please provide comments by 4/21/16.

  • Discretionary Adjustments
     
    These are draft amendments to sections 4-6.1, 4-6.3 and 4-6.4 of Subpart 4-6 of the New York State Business Corporation Franchise Tax Regulations. The amendments update the rules relating to discretionary adjustments to the apportionment fraction, apportionment by a government contractor and short period apportionment fraction.
     
    Text of Draft Rule
     
    Please provide comments by 6/2/16.

  • Metropolitan Transportation Business Tax Surcharge

    These are draft regulations related to the Metropolitan Transportation Business Tax Surcharge, under section 209-B of the Tax Law.  These regulations would repeal Part 9 of Subchapter A of Title 20 of the Codes, Rules and Regulations of the State of New York, adding in its place a new Part 9.  The new regulations provide, more comprehensively than the current Part 9, the rules for imposing the tax surcharge on the surcharge base apportioned to the Metropolitan Commuter Transportation District (MCTD) and based on business activity carried on within the MCTD.  The draft regulations include the method by which the applicable rate of the tax surcharge will be determined. 

    Text of Draft Rule

    Please provide comments by 12/1/16.

  • Prior Net Operating Loss Conversion (PNOLC) Subtraction

    These are draft amendments to the New York State Business Corporation Franchise Tax Regulations, Subpart 3-9, Computation of the Prior Net Operating Loss Conversion (PNOLC) Subtraction, comprising sections 3-9.1 through 3-9.11.  Unused net operating losses (NOLs) generated before the taxable year 2015 will be converted to a subtraction deduction, the PNOLC subtraction, to be applied against the taxpayer’s apportioned business income and subject to limitations described in the draft regulations.  The draft regulations detail the computation of PNOLC subtraction amounts, address how the new combined reporting rules (see text of draft regulations for combined reporting) affect the PNOLC subtraction, and include other rules specific to the PNOLC subtraction as well as examples.  New posting

    Text of Draft Rule

    Please provide comments by 8/3/17.

For more information see:

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