This is the fifth installment of a series that takes an inside look at the corporate tax reform proposals in Governor Andrew Cuomo’s 2014–15 New York Budget Bill. This proposed reform is sweeping and, if enacted, is likely to result in major changes for many New York corporate taxpayers. This installment of Inside the New York Budget Bill examines the Budget Bill’s provisions regarding net operating losses and the most significant changes and additions regarding tax credits.

Since the release of the Budget Bill, there have been amendments made to the Budget Bill itself (the so-called 21-day and 30-day amendments), and the Assembly and the Senate each have released versions of the proposed legislation, with the most recent versions being the “C” bills, Assembly Bill No. 8559C and Senate Bill No. 6359C. Each bill differs from the Budget Bill in certain respects. Since it is expected that the legislature and governor will continue to debate various key provisions of the proposed legislation (the constitutional deadline for enactment is April 1, 2014), this installment of Inside the New York Budget Bill addresses the Budget Bill’s proposals, as well as significant changes made to the Budget Bill’s proposals by the Assembly and Senate, regarding net operating losses (NOLs) and tax credits, as relevant.