New York’s corporate tax system has been in place for almost 100 years, but substantial changes will be taking effect soon now that the corporate tax reform proposals in Governor Cuomo’s 2014-2015 Executive Budget have been enacted.

These changes include:

  • An economic nexus standard with a $1 million threshold for annual receipts;
  • Market-based sourcing rules for sales other than sales of tangible personal property;
  • Taxing alien corporations based on effectively connected income;
  • Substantially changing combined reporting rules;
  • Allowing for greater utilization of net operating losses; and
  • Aligning the tax treatment of corporations and banks. 

Upon completion of this program, participants will understand:

  • How New York’s proposed nexus standard compares with its present one and the nexus standards of other states;
  • How the new sourcing rules will impact the corporate income tax treatment of certain types of transactions/receipts;
  • The impact of imposing New York income tax on alien corporations’ effectively connected income;
  • The issues surrounding New York’s combined reporting regime and the problems the budget provisions aim to remedy;
  • Why it is difficult to fully utilize net operating losses under New York’s current tax system; and
  • Efficiencies created by aligning the tax treatment of corporations and banks. 

Prerequisite: None
Level: Basic
Delivery Method: Group Internet Live
Recommended CPE Credit: 1.5 credits

Related Capabilities

Practices –