Proposed New York tax reform

Setting the stage for new legislation

​Addressing what is perceived to be a negative tax environment for business, the New York State Tax Reform and Fairness Commission has proposed revenue-neutral tax reforms to modernize New York’s corporate tax law.

Discussing significant corporate franchise tax proposals

In this article, the authors discuss how certain of the Commission’s proposals compare with current New York State corporate franchise tax law and how they stack up against a competing report issued by the New York State Senate Republican Conference.

The discussion focuses on some of the significant corporate franchise tax proposals that would impact corporations currently subject to corporation franchise taxes under either Article 9-A (General Business Corporation Franchise Tax) or Article 32 (Banking Corporation Franchise Tax) of Chapter 60 of the New York tax law. Specifically, the authors’ discuss the Commission’s proposals concerning:

  • Merging Article 32 into Article 9-A
  • Revising the types and compositions of the various franchise tax bases
  • Adopting an economic nexus standard
  • Modifying the income and capital apportionment provisions
  • Changing how combined return groups are determined, and
  • Modifying the calculation of net operating loss carryover deductions and tax credits

By Russell Banigan, Kenneth Jewell, and Mary Jo Brady of Deloitte Tax LLP, originally published in Bloomberg BNA "Tax Management Weekly State Tax Report" on December 20, 2013

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