In This Issue:

- Technical Correction

.. Economic Nexus

.. Tax Base and Income Classifications

.. Tax Rates and Qualified New York Manufacturers

.. Apportionment

.. Combined Reporting

.. Net Operating Losses and Investment Tax Credit

- Sales Tax Provisions

.. Dodd-Frank Act Relief Provisions

.. New Sales and Use Tax Provisions for Boats and Aircraft

.. Additional Sales and Use Tax Provisions

.. Sales and Use Tax Provisions Not Included

- New York Corporate Tax Reform

..Background

..Differences Between New York State and City Tax Laws

- Excerpt from Technical Corrections -

In 2014, Governor Andrew Cuomo signed into law major corporate income tax reform that resulted in significant changes for many corporate taxpayers, including a complete repeal of Article 32 (the franchise tax imposed on banking corporations) and changes to the Article 9-A (the franchise tax imposed on general corporations) traditional nexus standards, combined reporting provisions, composition of tax bases and computation of tax, apportionment provisions, net operating loss calculation and tax credits. Most of those provisions were effective for tax years beginning on or after January 1, 2015.

The Budget Bill’s technical corrections to last year’s corporate income tax reform include changes to the economic nexus, tax base and income classification, tax rate (including clarifications to rules applicable to certain taxpayers, such as qualified New York manufacturers), apportionment, combined reporting, net operating loss and tax credit provisions. The technical corrections are effective on the same date as last year’s corporate income tax reform.