New York tax reform enacted

State and Local Tax
On March 31, 2014, New York Governor Andrew Cuomo signed the state’s FY14-15 executive budget legislation. The legislation overhauls the state’s corporate tax regime as well as makes other significant tax changes. Important changes include: eliminating the bank franchise tax and subjecting all corporations to a revised corporate franchise tax, reducing the tax rate from the existing 7.1% to 6.5% effective for tax years beginning on or after January 1, 2016, establishing economic nexus, replacing the state’s existing combined reporting provisions with a unitary combined reporting system, providing an effectively connected starting point for foreign corporations, revising net operating loss provisions, establishing a single receipts factor apportionment formula with customer sourcing provisions, and providing tax breaks to manufacturers.


Return to Tax research and insights